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Overview
This section gives a description of the Revenue Recognition / Profit Centers option when you right click on the project. More on Revenue Recognition Profit Centers
Field Descriptions
Below are field descriptions for the Revenue Recognition pop-up that you get when you right-click on the project. More on Right-Clicking on the Project
Header
| • | Exclude from Revenue Recognition and Profit Sharing check-box - When checked, the project will be ignored in Profit Sharing adjustments. |
Sharing Org. Units Tab
Project Management Type
| • | Project Management Type drop-down - Profit Center Sharing Levels are established for the four PM types (Labor, ODC, OCC, and ICC). |
WBS Level
| • | WBS Level drop-down (selected with a PM Type) - These levels not only dictate the part of the WBS to which org members can charge, but also represent where organizations can establish intra-profit center caps and rules for revenue recognition. |
Projects Grid
| • | Path - Path of current project at the level of the selected WBS. |
| • | Name - Name of current project at the level of the selected WBS. |
| • | Overall Cap - Overall caps can be entered here. When the overall cap is non-zero, over-runs/under-runs are absorbed by the primary Sharing Profit Center. |
Org Units Grid
| • | Share - When checked, this organization can share in the project. |
| • | Path - Path of Organizational Unit. |
| • | Name - Name of Organizational Unit. |
| • | Is Primary - When checked, this is the primary org unit for this WBS node. Only one org unit can be the primary. The primary absorbs any overruns/under-runs for the level when a cap is present in the projects grid. |
| • | Cross Charge - When checked, this org unit receives cross-charging for any org units not listed as a share. Only one org unit can be specified for cross-charging. Setting a cross-charge org unit opens up this WBS node and its children to all org units. |
| • | Cap - Cap (if any) to be used in revenue calculations for this org unit. |
| • | PC - Percent complete (if any) to be used for revenue calculations for an org unit. |
| • | Revenue Method - Revenue recognition methods. There are various calculations based on time and material, caps, and percentage completions using various valuation rates. Below is a list of the Methods that can be selected. |
Owning Org. Units Tab
Description: The Owning Org. Unit tab in Revenue Recognition is an optional feature. It can run a Revenue Recognition method and the Owner would get/lose revenue based on what the owner method specifies less all revenues earned by the sharing org units. So basically the idea is you could have a Fixed Fee job where the overall earned is based on percent complete, meanwhile the sharing Orgs earn at a T & M basis.
Project Management Type
| • | Project Management Type drop-down - Profit Center Sharing Levels are established for the four PM types (Labor, ODC, OCC, and ICC). |
WBS Level
| • | WBS Level drop-down (selected with a PM Type) - These levels not only dictate the part of the WBS to which org members can charge, but also represent where organizations can establish intra-profit center caps and rules for revenue recognition. |
Revenue Methods
Labor Methods
| • | Pay rate with no cap - Transactions are analyzed at pay rate. There is no maximum |
| • | Job cost rate with no cap - Transactions are analyzed at job cost rate. There is no maximum |
| • | Bill rate with no cap - Transactions are analyzed at bill rate. There is no maximum |
| • | Pay rate with cap - Transactions are analyzed at pay rate. They are capped if applicable. |
| • | Job cost rate with cap - Transactions are analyzed at job cost rate. They are capped if applicable. |
| • | Bill rate with cap - Transactions are analyzed at bill rate. They are capped if applicable. |
| • | Percent complete - Transactions are analyzed at a user enter percent complete versus cap. |
| • | Cap amount - Revenue is set equal to cap amount. |
Expense Methods
| • | Cost amount with no cap - Transactions are analyzed at cost. There is no maximum |
| • | Bill amount with no cap - Transactions are analyzed at marked up or billable value. There is no maximum |
| • | Cost amount with cap - Transactions are analyzed at cost. They are capped if applicable. |
| • | Bill amount with cap - Transactions are analyzed at marked up or billable value. They are capped if applicable. |
| • | Percent complete - Transactions are analyzed at a user enter percent complete versus cap. |
| • | Cap amount - Revenue is set equal to cap amount. |
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