1. Using Project Revenue and Billing
  2. Revenue Amount Types

Revenue Amount Types

Oracle Fusion Project Billing calculates and stores several types of revenue amounts during revenue generation.

The types of revenue amounts are:

  • Potential

  • Eligible

  • Qualified

  • Revenue to be recognized

Potential Revenue

If the revenue method classification of the revenue plan for the contract line is as-incurred, as-billed, or rate-based, Oracle Fusion Project Billing calculates potential revenue for billing transactions originating from expenditure items, from bill rates, burden rates, labor multipliers, or transfer price rules and schedules. The following table describes the formulas used to calculate potential revenue.

Amount

Formula

Labor bill rate (when an override does not exist)

Standard rate * quantity * ((100 - discount percentage) / 100)

Labor bill rate (when an override exists)

Override rate * quantity

Labor markup (when an override does not exist)

Raw cost * ((markup percentage - discount percentage) / 100)

Labor multiplier

Raw cost * (1 + labor multiplier)

Labor burden

Raw cost * (1 + compiled multiplier)

Nonlabor bill rate (when an override does not exist)

Standard rate * quantity *((100 - discount percentage) / 100)

Nonlabor bill rate (when an override exists)

Override rate * quantity *((100 + markup percentage - discount percentage) / 100)

Nonlabor markup

Raw or burdened cost * ((markup percentage - discount percentage) / 100)

Nonlabor burden

Raw cost * (1 + compiled multiplier)

Transfer price (Basis calculation method)

Transfer price basis amount * (transfer price schedule markup percentage / 100) * (transfer price rule markup percentage / 100)

Transfer price (Rate or burden calculation method)

Potential amount * (transfer price schedule markup percentage / 100) * (transfer price rule markup percentage / 100)

The potential amount is calculated from either rates or burdening.

Eligible Revenue

Oracle Fusion Project Billing uses the following formula to calculate the eligible revenue amount for a billing transaction originating from an expenditure item:

  • Potential revenue amount * contribution percentage / 100

Qualified Revenue

The qualified revenue amount for a billing transaction is dependent on the billing controls for the contract or contract line. The qualified amount is equal to the amount of eligible revenue for a billing transaction that passes the hard limits of all applicable billing controls.

Revenue to be Recognized

The difference between qualified revenue and recognized revenue for a billing transaction.

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