Planning Revenue

The Projects Revenue component provides several options to help you plan project revenue (for contract projects only):

Table 6-4 Planning Project Revenue

Task	Description	More Information
Overview	Review project revenue in a dashboard format.	Analyzing Project Financials With Dashboards
Driver Based	Perform driver-based revenue planning by setting up revenue assumptions. Define revenue recognition performance obligations and percentages, and perform revenue recognition what-if analysis.	Entering Revenue Drivers and Defining Revenue Recognition Obligation Details
Direct Entry	Enter revenue directly in a spreadsheet-like format.	Entering Revenue Directly
Analysis	Review overall revenue for a project, project profitability, and project cash flow in a grid.	Reviewing Overall Project Revenue
Assumptions	Review global rate assumptions that drive project financials.	Entering Project Assumptions

Entering Revenue Drivers

When you do driver-based planning using revenue assumptions, revenue is calculated using the built-in formulas, using the revenue drivers you enter. For example, you can set up labor or equipment assumptions for contract projects and indicate how revenue is recognized.

To use driver-based revenue planning, review the existing rates your administrator entered, and add and modify your own assumptions.

1. Click Revenue .

2. Click Driver Based .
3. Select the horizontal tab for the revenue assumptions you want to enter and enter assumption details.
   • Labor—Enter revenue assumptions for labor such as billing rate.
   • Material—Enter revenue assumptions for material such as billing rate per unit.
   • Equipment—Enter revenue assumptions for equipment such as billing rate.
   • Other—Set other revenue assumptions.

   • Cost Plus—Set the Margin earned for a Cost Plus Project. The margin % can be set on the Total Expense or at a more detailed level.

   • Revenue Recognition What If—Set the revenue recognition terms for the project and perform what-if analysis. See Defining Revenue Recognition Obligation Details.

4. If the project is set up with Override Standard Labor Rates, Override Standard Equipment Rates, or Override Standard Materials Rates set to Yes, and the global rate is not correct for a project, enter the new rate.

5. To add or remove revenue assumptions, from the Actions menu, select Add Line Items or Remove Line Item.

6. When you've finished entering revenue assumptions, from the Actions menu, select Calculate Revenues.

Entering Revenue Directly

You can directly enter project revenue. When you enter revenue directly, no driver-based calculations are used.

When you change project dates, or when you import projects, before directly entering revenue, on the Project Details form, from the Actions menu, click Refresh Project Dates.

1. Click Revenue .
2. Click Direct Entry .
3. Select the project from the Point of View, and then select revenue types and enter revenue details on each row.

   Tip:

   You can copy a cell value and drag the cursor to fill all the cells in a row.

   If you enter at the Year total level, values are automatically spread evenly to lower levels.

4. From the Actions menu, you can select Add Line Items or Remove Line Item.

5. When you've finished entering revenue, from the Actions menu, select Calculate Revenue.

Reviewing Overall Project Revenue

You can review an overall summary of project revenue in a spreadsheet-like format. Values come from driver-based expenses and from direct input.

1. Click Revenue. .
2. Click Analysis .
3. Change the project or other members to review by selecting different members from the Point of View.
4. Click the horizontal tabs to review total project revenue, project profitability, or project cash flow.