Create Contract for Percent Spent Invoice and Revenue Methods

This example describes a scenario where transactions for a contract line need to be invoiced and the revenue recognized using the percent spent method.

The following table summarizes key decisions for this scenario.

Decisions to Consider	In This Example
What are the revenue and invoice method classifications?	Percent Spent
What is the billing extension calculation level for the contract line and project association?	Project level

Summary of the Tasks

Create a contract, create the percent spent contract lines, create the bill plan, create the revenue plan.

Prerequisites

1. Create a project.

2. Create a financial project plan for the project.

3. Specify the desired cost plan type on the percent spent invoice or revenue billing extension.

4. If the class of the selected cost plan type is:

   • Budget: create a project budget, set as current working, and create a baseline.

   • Forecast: create a project forecast, set as current working, and approve.

5. Enter labor and expense transactions for the project.

6. Collect costs for the transactions.

Creating the Contract

1. On the Contract Overview page, expand Search and look for the contract with the attributes listed in the following table.

   Field	Value
   Contract Type	Sell: Project Lines
   My Contracts	If this field is checked, remove the check mark.
   Party Name	Vision Software Install

2. Click Search.

3. In the Search Results region, select the row for the PJB contract (VO), Version 1.

4. Click Actions > Duplicate.

5. On the Duplicate Contract window, enter the values listed in the following table.

   Field	Value
   Contract Number	Your initials, PS001 (For example, TP PS001)
   Start Date	01/01/2010
   All other fields	Enable check boxes

6. Click Yes.

Creating the Percent Spent Contract Lines

1. Select the Lines tab, and select the Amount Based Invoice, Percent Spent Revenue row. Confirm the amount is $250,000.

2. Select the Billing tab, and select the row with the $250,000 soft limit.

3. Click Resource Member, and select Labor (Expenditure Category).

4. Click the Create icon. Click Resource Member, and select Expenses.

5. Enter 30,000 for Soft Limit.

6. Click Save.

7. Select the Associated Projects tab, and the Create icon.

8. Enter the information listed in the following table.

   Field	Value
   Project Name	Select the project you created in the earlier example.
   Funded Amount	100,000

9. Click Save.

Creating the Bill Plan

1. Select the Header tab, and click Billing.

2. Select the row with the BP PS1 Bill Plan.

3. Verify the information described in the following table.

   Field	Value
   Method Name	Percent Spent
   Billing Cycle	Last Day of the Month

4. In the Associated Contract Lines region, select the Add icon.

5. In the Select and Associate: Contract line window, click Search.

6. Select the row containing Contract Line Number 4.

7. Click Submit.

8. Click Save.

9. Select the Billing Extensions tab.

10. Verify the information described in the following table.

    Field	Value
    Name	Percent Spent Invoice
    Status	Active
    Calculation Level	Associated Project

11. Click Save and Close.

Creating the Revenue Plan

1. From the Header tab, click Billing.

2. Select the row with the RP PS1 Revenue Plan.

3. Verify if the following information is present:

   Field	Value
   Method Name	Percent Spent Revenue
   Contract Line Number	4

4. Select the Billing Extensions tab.

5. Verify the information described in the following table.

   Field	Value
   Name	Percent Spent Revenue
   Status	Active
   Calculation Level	Associated Project

6. Click Save and Close.