Defining Activity Milestones

If you selected milestone as your revenue recognition method, you must define activity milestones for the activity. You can define Milestones manually, or you can define them in days, dates, or percent complete. You can define milestones either for personal tracking or for automatic revenue recognition when a task is complete. This procedure describes how to define activity milestones.

Before you can define activity milestones, you must define your contract parameters.

To define activity milestones

  1. Access Milestones (BR05.1).
  2. To define activity milestones, use the following guidelines to enter field values:
    Activity

    Select the posting or contract activity for which you want to define milestones.

    Milestone Type

    Select R (Revenue) if the milestone will be used for revenue recognition.

    Post To Account Category

    Leave this field blank for revenue type milestones.

  3. To define activity milestones in terms of days, click the Days button to access Days Milestones (BR05.2).
  4. Use the following guidelines to enter field values:
    Milestone

    Type a code that identifies the days milestone and a description of the milestone.

    Days

    Type the number of days expected to reach the milestone.

    Note: The Days milestone is based on the start date of the contract activity if not segmented, or the posting activity if segmented.
    Amount

    Type the amount to recognize for the milestone. Enter the amount in the contract currency.

    Percent

    Type a percent to calculate the milestone revenue amount.

    Note: This percent is multiplied by the activity or contract ceiling amount when you run Invoice Calculation (BR120).
    Status

    Select the milestone status:

    • 1 (To Process): The milestone is completed and should be included in the next revenue recognition process. Default.

    • 2 (Processed): The milestone was recognized for revenue.

    • 3 (Hold): The milestone is held from revenue recognition for one processing cycle.

  5. To define significant dates on which to automatically recognize revenue for activity tasks as they are completed, click the Date button to access Date Milestones (BR05.3).
  6. Use the following guidelines to enter field values:
    Milestone

    Type a code that identifies the milestone and a description of the milestone.

    Date

    Type the date the milestone is expected to be reached.

    Note: Type a date after the Begin Date defined on Activity (AC10.1).

    For example, if the activity begins on 010199 and the design acceptance should be completed 50 days after the activity starts, type 021999 in the Date field.

    Amount

    Type the amount to recognize for the milestone. Enter the amount in the contract currency.

    Percent

    Type a percent to calculate the milestone revenue amount.

    Note: This percent is multiplied by the activity or contract ceiling amount when you run Invoice Calculation (BR120).
    Status

    Select the milestone status:

    • 1 (To Process): The milestone is completed and should be included in the next revenue recognition process. To Process is the default.

    • 2 (Processed): The milestone was recognized for revenue.

    • 3 (Hold): The milestone is held from revenue recognition for one processing cycle.

  7. To define revenue milestones in terms of percentage of completion, click the Percent Complete button to access Percent Complete Milestones (BR05.4).
  8. Use the following guidelines to enter field values:
    Milestone

    Type a code that identifies the milestone and a description of the milestone.

    Percent Complete

    Type the percentage of the activity that is to be completed before revenue can be recognized. What is Milestone Revenue Recognition?

    Budget Type

    Select whether you want to calculate the percent complete for activity units or amounts.

    Amount

    Type the amount to recognize for the milestone. Enter the amount in the contract currency.

    Percent

    Type a percent to calculate the milestone revenue amount.

    Note: This percent is multiplied by the activity or contract ceiling amount when you run Invoice Calculation (BR120).
    Status

    Select the milestone status:

    • 1 (To Process): The milestone is completed and should be included in the next revenue recognition process. To Process is the default.

    • 2 (Processed): The milestone was recognized for revenue.

    • 3 (Hold): The milestone is held from revenue recognition for one processing cycle.

  9. To define activity milestones manually, click the Manual button to access Manual Milestones (BR05.5).
  10. Use the following guidelines to enter field values:
    Milestone

    Type a code that identifies the milestone and a description of the milestone.

    Amount

    Type the amount to recognize for the milestone. Enter the amount in the contract currency.

    Percent

    Type a percent to calculate the milestone amount.

    Note: This percent is multiplied by the activity or contract ceiling amount when you run Invoice Calculation (BR120).
    Status

    Select the milestone status:

    • 1 (To Process): The milestone is completed and should be included in the next revenue recognition process. To Process is the default.

    • 2 (Processed): The milestone was recognized for revenue.

    • 3 (Hold): The milestone is held from revenue recognition for one processing cycle.