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 Unit price	Default	Earnings % × Assigned pay item’s Forecast total revenue.
Unit price	Default	Earnings % × 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 × Scale 1 % × Scale 1 Charge rate + Work hours × Scale 2 % × Scale 2 Charge rate + Work hours × Scale 3 % × Scale 3 Charge rate. Forecast final revenue (construction equipment resource) = Work hours × Charge rate. Forecast final revenue (all other resources) = Resource quantity × 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) × (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 of 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 × (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 × (Cost item Forecast total cost ÷ sum of all assigned cost items' Forecast total cost excluding Rollup method and disabled forecasts).
	Billed	IF all of 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 × (CE final 202cost 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 × (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 Unit price		Forecast final revenue of the pay item × (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 × Scale 1 % × Scale 1 Billable rate + Remaining work hours × Scale 2 % × Scale 2 Billable rate + Remaining work hours × Scale 3 % × Scale 3 Billable rate] × [1 + Labor resource markup % from settings] Forecast remaining revenue (construction equipment resource) = Remaining work hours × Billable rate × 41[1 + Construction equipment resource markup % from settings]. Forecast remaining revenue (all other resources) = Resource remaining quantity × Billable rate × [1 + Resource markup % from settings] Forecast remaining revenue (plug) = Sum for each cost category[Forecast cost category remaining cost × (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) × Work hours × Scale 1 % × Scale 1 Charge rate + (1 - % complete) × Work hours × Scale 2 % × Scale 2 Charge rate + (1 - % complete) × Work hours × Scale 3 % × Scale 3 Charge rate Forecast remaining revenue (construction equipment resource) = (1 - % complete) × Work hours × Charge rate Forecast remaining revenue (all other resources) = (1 - % complete) × Resource quantity × Charge rate Forecast remaining revenue (plug) = (1 - % complete) × 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 × Scale 1 % × Scale 1 Billable rate + Remaining work hours × Scale 2 % × Scale 2 Billable rate + Remaining work hours × Scale 3 % × Scale 3 Billable rate] × [1 + Labor resource markup % from settings] Forecast remaining revenue (construction equipment resource) = Remaining work hours × Billable rate × [1 + Construction equipment resource markup % from settings] Forecast remaining revenue (all other resources) = Resource remaining quantity × Billable rate × [1 + Resource markup % from settings] Forecast remaining revenue (plug) = Sum for each cost category [Forecast cost category remaining cost × (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 × % complete.

Pay Items register 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		Current unit price × 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) × sum for all cost categories[Forecast total cost × (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) × sum for all cost categories[Forecast total cost × (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) × sum for all cost categories [Forecast total cost × (1+Markup % from cost category settings)]} Forecast final margin ÷ forecast final revenue.

Forecast revenue earned
Billing method	Revenue forecast method	Calculation
Time & Material		WHEN the Revenue is considered earned when a LEM is setting is set to Pending THEN sum of 'BillAmount' 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.