How Percent Complete Invoice Amounts Are Calculated

Oracle Fusion Project Billing uses the percent complete invoice method to invoice as progress is measured and recorded.

The Generate Invoice process:

1. Calculates the percent complete amounts

2. Creates invoice events with the percent complete amounts

Prerequisites and Settings That Affect Percent Complete Invoice Amounts

The following prerequisites and settings impact the percent complete invoice for a contract line:

• The percent complete on the contract line or associated project must be greater than zero.

  • To ensure the percent complete is greater than zero:

    • Ensure the project progress numbers are up to date and then update the progress for the entire contract.

    • Manually enter percent complete.

    • Override percent complete after the update from project progress.

• 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 bill plan that uses the percent complete invoice method.

• The bill 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
Associated project	The percent complete invoice 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.
Contract line	The percent complete invoice method creates one event for the contract line. The event contains the total of all percent complete amount for all projects and tasks associated with the contract line. The event doesn't contain a project or task.

How Percent Complete Is Calculated

The application performs the following activities when you update the progress:

• Retrieves all project progress amounts for all tasks for the associated projects of each contract line associated with a percent complete bill plan.

• Calculates percent complete at the contract line level, if the calculation level in the bill plan is contract line.

• Calculates percent complete at the associated project and task level, if the calculation level in the bill plan is associated project.

• Updates the percent complete attributes for all applicable contract lines or associated projects, based on the calculation level selected in the bill plan.

The following examples show how percent complete is calculated at the contract line level and associated project level based on effort and cost.

Contract Line Percent Complete Effort Example

When progress is based on effort, the following formula calculates the percent complete for the contract line.

Task	Baseline Budget Effort	Physical Percent Complete	Earned Value Effort	Percent Complete
1	8	20	160
1	8	50	400
Line 1	16		560	35

Associated Project Percent Complete Effort Example

When progress is based on effort, the following formula calculates the percent complete for the associated project.

Task	Baseline Budget Effort	Physical Percent Complete	Earned Value Effort	Percent Complete
1.1	2	50	100
1.2	6	10	60
1	8		160	20

Contract Line Percent Complete Cost Example

When progress is based on cost, the following formula calculates the percent complete for the contract line.

Task	Baseline Budget Cost	Physical Percent Complete	Earned Value Cost	Percent Complete
1	1000	20	20000
2	500	50	25000
Line 1	1500		45000	30

Associated Project Percent Complete Cost Example

When progress is based on cost, the following formula calculates the percent complete for the associated project.

Task	Baseline Budget Cost	Physical Percent Complete	Earned Value Cost	Percent Complete
1.1	250	50	12500
1.2	750	10	7500
1	1000		20000	20
2.1	400	60	24000
2.2	100	10	1000
2	500		25000	50

How Percent Complete Invoice Amounts Are Calculated

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

Contract Line Percent Complete Amount Example

The following formula calculates percent complete invoice event amounts for the contract line.

Percent Complete	Contract Line Amount	Sum of Existing Invoice Events	Percent Complete Event Amount
30	2000	100	500

Associated Project Percent Complete Amount Example

The following formula calculates percent complete invoice event amounts for the associated project.

Percent Complete	Associated Project Funded Amount	Sum of Existing Invoice Events	Percent Complete Event Amount
20	1300	80	180
50	700	20	330