How Percent Spent Revenue Amounts are Calculated

Project Billing uses the percent spent revenue method to recognize revenue as progress is calculated.

The Generate Revenue process:

1. Calculates the percent spent amounts

2. Creates events

Prerequisites and Settings That Affect Percent Spent Revenue Amounts

The following prerequisites and settings impact the percent spent revenue for a contract line:

• A current baseline cost (or cost and revenue) budget version must exist for all projects associated with the contract line, if the class of the cost plan type of the percent spent revenue billing extension is budget.

• An approved cost (or cost and revenue) forecast version must exist for all projects associated with the contract line, if the class of the cost plan type of the percent spent revenue billing extension is forecast.

• All existing actual costs for projects associated with the contract line must first be summarized.

• The To Date parameter of the Generate Revenue process is a date that's on or after the last day of the current accounting period.

• The contract line amount or the funded amount for each project and task associated with the contract line must be greater than zero.

• The contract line must be assigned to a revenue plan that uses the percent spent revenue method.

• The revenue plan contains a calculation level that creates events for the contract line or associated project.

The following table describes the effects of the calculation level selection.

Calculation Level	Description
Contract line	The percent spent revenue method creates separate events for each project and task associated with the contract line. Each event contains the project and task associated with the contract line.
Associated project	The percent spent revenue method creates one event for the contract line. The event contains the total of all percent spent amounts for all projects and tasks associated with the contract line. The event doesn't contain a project or task.

How Associated Projects Actual Cost is Calculated

The associated projects actual cost is the inception-to-date (ITD) actual cost. Inception-to-date actual cost is derived by summing the actual costs summarized by accounting period up to and including the maximum accounting period with a period end date that's on or before the To Date of the Generate Revenue process. To include current period costs in the calculation, use a To Date that's on or after the last day of the current accounting period.

How Percent Spent Revenue Amounts are Calculated

The following examples show how percent spent revenue amounts are calculated for the contract line and associated project.

Contract Line Percent Spent Example

The following formula calculates the percent spent revenue for the contract line.

Task	ITD Actual Cost	Total Budgeted Cost	Contract Line Amount	Sum of Existing Revenue Events	Percent Spent Event Amount
1	60	300
2	40	100
Line 1	100	400	1000	100	150

Associated Project Percent Spent Example

The following formula calculates the percent spent revenue for the associated project.

Task	ITD Actual Cost	Total Budgeted Cost	Associated Project Funded Amount	Sum of Existing Revenue Events	Percent Spent Event Amount
1.1	40	100
1.2	20	200
1	60	300	600	75	45
2.1	30	60
2.2	10	40
2	40	100	400	25	135