Understanding Revenue-Only Contract Billing Lines
In addition to calculating revenue from existing billing lines, you can also set up revenue-only billing lines, which are additional billing lines that the system uses only for calculating revenue for a contract. You can define these two types of revenue-only billing lines:
Percent complete (billing line type E).
Percent of billing (billing line type H).
Percent complete billing lines enable you to recognize revenue for a percentage of the schedule of values for a contract. When you set up percent complete lines, you specify a percentage, and then enter an amount in the Schedule of Values field. When you run the Journal Generation program (R48132), the system multiplies this percentage by the schedule of values amount to calculate the revenue amount.
Percent of billing lines enable you to recognize revenue for a percentage of the cumulative billed amount. To set up percent of billing lines, you specify a percentage. When you run the R48132 program, the system multiplies this percentage by the cumulative billed amount (cost + fee + award fee amounts) to calculate the revenue amount.
After you set up a revenue-only billing line, you must define cross-references for the line. Cross-references define the billing lines for which you have already recognized revenue for a contract, so that you don't inflate revenue amounts.
You use the Revenue Billing Line Cross Reference program (P5217) to specify which lines are to be included in the revenue calculation, and the system stores these cross-references in the Revenue Billing Line Cross Reference table (F5217). When you run the Contract Revenue Workfile Generation program (R52120), the system creates placeholder transactions in the Billing Detail Workfile table (F4812) for the revenue billing lines. When you run the G/L Journal Generation program (R48132). the system performs the following actions to calculate the revenue amount:
Retrieves the cross-reference information from the F5217 table.
Retrieves the revenue percent, schedule of values, revenue status, and whether to include excess lines from the F5202 table.
For percent complete revenue lines, the system then performs these actions:
Retrieves the previous revenue amounts for the billing lines that are cross-referenced to the revenue line from the F4812 and the F4812H tables.
Determines whether to include excess lines, and if so, includes them.
Calculates the revenue amount by multiplying the percent complete by the schedule of values and then subtracting the previous revenue amount.
For percent of billing revenue lines, the system performs these actions:
Retrieves the previously billed amounts for the billing lines that are cross-referenced to the revenue line from the F4822 table and retrieves the previous revenue amounts for the billing lines that are cross-referenced to the revenue line from the F4812 and the F4812H tables.
Determines whether to include excess lines, and if so, includes them.
Calculates the revenue amount by multiplying the percent complete by the billed amount and then subtracting the previous revenue amount.