Revenue calculations

The revenue calculations are based on the following:

  • Pay items assigned billing method.

  • Pay items assigned revenue forecast method.

Control calculates revenue in the CBS and Pay Item registers based on the billing and revenue forecast methods.

Cost Breakdown Structure (CBS) register revenue calculations

The following tables show how the different types of revenue are calculated in the CBS.

Forecast total revenue
Billing method Revenue forecast method Calculation
Fixed final price Default

Earnings % x Assigned pay item’s Forecast total revenue.
Unit price Default Earnings % x Assigned pay item’s Forecast total revenue.
Cost plus Earned (Current estimate)

IF Cost source = Detail

THEN Forecast final revenue (labor resource) + Forecast final revenue (construction equipment resource) + Forecast final revenue (all other resources)

ELSE

Forecast final revenue (plug) WHERE Forecast final revenue (labor resource) = Work hours x Scale 1 % x Scale 1 Charge rate + Work hours x Scale 2 % x Scale 2 Charge rate + Work hours x Scale 3 % x Scale 3 Charge rate.

 

Forecast final revenue (construction equipment resource) = Work hours x Charge rate.

 

Forecast final revenue (all other resources) = Resource quantity x Charge rate Forecast final revenue (plug) = CE revenue amount.

  Earned (Forecast cost)

Forecast remaining revenue + Sum for each cost category [Actual cost category cost (to date) x (1 + Cost category markup % from settings)]

IF Forecast method = Rollup

THEN Sum (children's Forecast final revenue)

ELSE

IF Forecast method is disabled

THEN 0.
  Billed

IF All the Billed revenue is assigned to cost item(s)

THEN Forecast remaining revenue + Billed Revenue assigned to the cost item

ELSE

Forecast remaining revenue + (Billed Revenue of the pay item unassigned to a cost item x (CE final cost of the cost item/CE final cost of all cost items assigned to the pay item) + Billed Revenue assigned to the cost item.

Time & Material

Earned

 Forecast total revenue = Pay item forecast total revenue x (Cost item Forecast total cost / sum of all assigned cost items' Forecast total cost excluding Rollup method and disabled forecasts).
  Billed

IF All the Billed revenue is assigned to cost item(s)

THEN Forecast remaining revenue + Billed Revenue assigned to the cost item

ELSE Forecast remaining revenue + (Billed Revenue of the pay item unassigned to a cost item x (CE final cost of the cost item/CE final cost of all cost items assigned to the pay item) + Billed Revenue assigned to the cost item.

All methods Manual Forecast final revenue of the pay item x (CE final cost of the cost item/CE final cost of all cost items assigned to the pay item).

 

Forecast remaining revenue
Billing method Revenue forecast method Calculation

Fixed final price

  Forecast final revenue of the pay item x (CE final cost of the cost item/CE final cost of all cost items assigned to the pay item).
Unit price   Forecast final revenue of the pay item x (CE final cost of the cost item/CE final cost of all cost items assigned to the pay item).
Cost plus Earned (Current estimate) Forecast total revenue – Forecast revenue earned.
  Earned (Forecast cost)

IF Cost source = Detail

THEN Forecast remaining revenue (labor resource) + Forecast remaining revenue (construction equipment resource) + Forecast remaining revenue (all other resources) {Using resources in the Forecast resources tab only}

ELSE Forecast remaining revenue (plug)

WHERE Forecast remaining revenue (labor resource) = [Remaining work hours x Scale 1 % x Scale 1 Billable rate + Remaining work hours x Scale 2 % x Scale 2 Billable rate + Remaining work hours x Scale 3 % x Scale 3 Billable rate] x [1 + Labor resource markup % from settings]

Forecast remaining revenue (construction equipment resource) = Remaining work hours x Billable rate x [1 + Construction equipment resource markup % from settings]

 

Forecast remaining revenue (all other resources) = Resource remaining quantity x Billable rate x [1 + Resource markup % from settings]

 

Forecast remaining revenue (plug) = Sum for each cost category[Forecast cost category remaining cost x (1 + Cost category markup % from settings)]

 

IF Forecast method = Rollup

THEN Sum (children's Forecast remaining revenue)

ELSE

IF Forecast method is disabled

THEN 0.
  Billed

IF Cost source = Detail

THEN Forecast remaining revenue (labor resource) + Forecast remaining revenue (construction equipment resource) + Forecast remaining revenue (all other resources)

ELSE Forecast remaining revenue (plug)

WHERE Forecast remaining revenue (labor resource) = (1 − % complete) x Work hours x Scale 1 % x Scale 1 Charge rate + (1 − % complete) x Work hours x Scale 2 % x Scale 2 Charge rate + (1 − % complete) x Work hours x Scale 3 % x Scale 3 Charge rate

 

Forecast remaining revenue (construction equipment resource) = (1 − % complete) x Work hours x Charge rate

 

Forecast remaining revenue (all other resources) = (1 − % complete) x Resource quantity x Charge rate

 

Forecast remaining revenue (plug) = (1 − % complete) x CE revenue amount.

Time & Material  

IF Cost source = Detail

THEN Forecast remaining revenue (labor resource) + Forecast remaining revenue (construction equipment resource) + Forecast remaining revenue (all other resources) {Using resources in the Forecast resources tab only}

ELSE

Forecast remaining revenue (plug)

WHERE Forecast remaining revenue (labor resource) = [Remaining work hours x Scale 1 % x Scale 1 Billable rate + Remaining work hours x Scale 2 % x Scale 2 Billable rate + Remaining work hours x Scale 3 % x Scale 3 Billable rate] x [1 + Labor resource markup % from settings]

 

Forecast remaining revenue (construction equipment resource) = Remaining work hours x Billable rate x [1 + Construction equipment resource markup % from settings]

 

Forecast remaining revenue (all other resources) = Resource remaining quantity x Billable rate x [1 + Resource markup % from settings]

 

Forecast remaining revenue (plug) = Sum for each cost category [Forecast cost category remaining cost x (1 + Cost category markup % from settings)]

 

IF Forecast method = Rollup

THEN

Sum (children's Forecast remaining revenue)

ELSE

IF Forecast method is disabled

THEN 0.

All methods Manual Forecast total revenue – Forecast revenue earned.

 

Forecast revenue earned
Billing method Revenue forecast method Calculation
Time & Material All methods

WHEN the Revenue is considered earned when a LEM is setting is set to Pending

THEN Sum of all BillAmount values where BatchType = LEM AND DocumentStatus <> Cancelled

ELSE

WHEN the Revenue is considered earned when a LEM is setting is set to Approved

THEN Sum of all BillAmount values where BatchType = LEM AND DocumentStatus <> Cancelled OR Pending approval.

All other methods All methods Forecast total revenue x % complete.

Pay Items register revenue calculations

The following tables show how the different types of revenue are calculated in the Pay Items register:

Forecast total revenue
Billing method Revenue forecast method Calculation
Fixed final price Default Current price
Unit price Default Current unit price x Current forecast (T/O) qty.
Cost plus Earned

Sum of assigned cost items’ Forecast total revenue excluding Rollup values.
  Billed Billed revenue + sum of assigned cost items’ Forecast remaining revenue.
Time & Material Billed Billed revenue + sum for all assigned cost items {(1−% complete) x sum for all cost categories [Forecast total cost x (1+Markup % from cost category settings)]}.
  Earned

IF the Revenue is considered earned when a LEM is setting is set to Pending

THEN = Revenue earned + sum for all assigned cost items {(1−% complete) x sum for all cost categories [Forecast total cost x (1+Markup % from cost category settings)]}

ELSE

IF the Revenue is considered earned when a LEM is setting is set to Approved

THEN = Revenue earned + Pending LEMs + sum for all assigned cost items {(1−% complete) x sum for all cost categories [Forecast total cost x (1+Markup % from cost category settings)]} Forecast final margin/forecast final revenue.

 

Forecast revenue earned
Billing method Revenue forecast method Calculation
Timie & Material  

WHEN the Revenue is considered earned when a LEM is setting is set to Pending

THEN Sum of BillAmoun values where BatchType = LEM

AND DocumentStatus <> Cancelled OR Pending removal

ELSE

WHEN the Revenue is considered earned when a LEM is setting is set to Approved

THEN Sum of all BillAmount values where BatchType = LEM AND DocumentStatus <> Cancelled OR Pending approval OR Pending removal
All other methods   Sum of assigned cost items Forecast revenue earned.