How Percent Complete Revenue Amounts are Calculated
Oracle Fusion Project Billing uses the percent complete revenue method to recognize revenue as progress is measured and recorded.
The Generate Revenue process:
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Calculates the percent complete amounts
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Creates revenue events with the percent complete amounts
Prerequisites and Settings That Affect Percent Complete Revenue Amounts
The following prerequisites and settings impact the percent complete revenue for a contract line:
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The percent complete on the contract line or associated project must be greater than zero.
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To ensure the percent complete is greater than zero:
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Ensure the project progress numbers are up to date and then update the progress for the entire contract.
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Manually enter percent complete.
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Override percent complete after the update from project progress.
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The contract line amount or the funded amount for each project and task associated with the contract line must be greater than zero.
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The To Date parameter of the Generate Revenue process is a date that is on or after the last day of the current accounting period.
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The contract line amount or the funded amount for each project and task associated with the contract line must be greater than zero.
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The contract line must be assigned to a revenue plan that uses the percent complete revenue method.
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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 |
---|---|
Associated project |
The percent complete 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. |
Contract line |
The percent complete revenue 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:
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Retrieves all project progress amounts for all tasks for the associated projects of each contract line associated with a percent complete revenue plan.
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Calculates percent complete at the contract line level, if the calculation level in the revenue plan is contract line.
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Calculates percent complete at the associated project and task level, if the calculation level in the revenue plan is associated project.
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Updates the percent complete attributes for all applicable contract lines or associated projects, based on the calculation level selected in the revenue 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
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
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
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
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 Revenue Amounts Are Calculated
The following examples show how percent complete revenue amounts are calculated for the contract line and associated project.
Contract Line Percent Complete Amount Example
Percent Complete |
Contract Line Amount |
Sum of Existing Revenue Events |
Percent Complete Event Amount |
---|---|---|---|
30 |
2000 |
100 |
500 |
Associated Project Percent Complete Amount Example
Percent Complete |
Associated Project Funded Amount |
Sum of Existing Revenue Events |
Percent Complete Event Amount |
---|---|---|---|
20 |
1300 |
80 |
180 |
50 |
700 |
20 |
330 |