% Complete Recognition Method

If you are using the integration between PSA and Revenue Management, records looking up to a template in Revenue Management of type % Complete that fall within the monthly time periods spanning the project duration are included.

If you run Revenue Forecasting after revenue has been recognized, the revenue is moved from the Revenue Pending Recognition field into the Revenue Recognized to Date field on the revenue forecast record for the monthly time period that corresponds to the date the revenue was recognized in Revenue Management.

If you are not using the integration between PSA and Revenue Management, Revenue Forecasting looks at the Recognition Method field on a record, which must have a value of % Complete.

EVA records that meet the following criteria are included:

• The Type field in the Time Period lookup has a value of Month.
• For EVA records generated for assignments:
  • The assignment record in the Assignment lookup looks up to the corresponding milestone.
  • The assignment record in the Assignment lookup has the Billable checkbox set to false, or has the Billable checkbox selected with a value of zero or null in the Bill Rate field.
• For EVA records generated for held resource requests:
  • The records look up to the corresponding milestone.
  • The value in the Resource Request Hours field is greater than zero.
  • The value in the Resource Request Bill Rate field is null or zero.
  • The held resource request does not have an associated assignment.

Scheduled Hours

For assignments, Revenue Forecasting uses the following calculation to work out the number of scheduled hours:

Estimated Hours - Actual Hours

For held resource requests, the value in the Resource Request Hours field on an EVA record represents the number of scheduled hours.

Unscheduled Hours

The following calculation is used to work out the number of unscheduled hours:

Planned Hours - (Actual Hours on Timecards + Scheduled Hours on Resource Requests + Scheduled Hours on Assignments)

Scheduled Revenue

The following calculation is used to work out the Scheduled Revenue percentage for a given month:

(Total Scheduled Hours/Planned Hours) * 100

To work out the Scheduled Revenue amount, the Scheduled Revenue percentage value is multiplied by the value in the Milestone Amount field on the milestone record.

Timecard records that meet the following criteria are included:

• The Assignment lookup is populated with a value.
• The value in the Status field matches one of the values displayed in the Timecard Statuses field on the Est Vs Actuals custom setting.
• The Approved checkbox is selected.
• The Billable checkbox is set to false.
• The corresponding milestone is populated in the Milestone lookup.

To work out the Revenue Pending Recognition percentage, the following calculation is used:

(Sum of approved timecard hours/Planned Hours) * 100

To work out the Revenue Pending Recognition amount, the Revenue Pending Recognition percentage is multiplied by the value in the Milestone Amount field on the milestone record.

If you are using the integration between PSA and Revenue Management:

• Revenue Recognized to Date = Sum of the recognized values in a given month, based on the recognition date in Revenue Management.
• Pending Recognition = Revenue Recognized to Date value subtracted from the value on the relevant % Complete: Milestone record that has a revenue type of Actuals in PSA.
• Scheduled Revenue = Value on the relevant % Complete: Milestone record that has a revenue type of Forecast in PSA.

For more information about the fields on a milestone record, see Milestone Fields.

EVA records that meet the following criteria are included:

• The Type field in the Time Period lookup has a value of Month.
• For EVA records generated for assignments, the assignment record in the Assignment lookup has the Billable checkbox set to false, or has the Billable checkbox selected with a value of zero or null in the Bill Rate field.
• For EVA records generated for held resource requests:
  • The value in the Resource Request Hours field is greater than zero.
  • The value in the Resource Request Bill Rate field is null or zero.
  • The held resource request does not have an associated assignment.

Scheduled Hours

For assignments, Revenue Forecasting uses the following calculation to work out the number of scheduled hours:

Estimated Hours - Actual Hours

For held resource requests, the value in the Resource Request Hours field on an EVA record represents the number of scheduled hours.

Unscheduled Hours

The following calculation is used to work out the number of unscheduled hours:

Estimated Hours at Completion - (Actual Hours on timecards + Scheduled Hours on resource requests + Scheduled Hours on assignments)

Scheduled Revenue

The following calculation is used to work out the Scheduled Revenue percentage for a given month:

(Total Scheduled Hours/Estimated Hours at Completion) * 100

To work out the Scheduled Revenue amount, the Scheduled Revenue percentage value is multiplied by the value in the Bookings field on the project record.

Timecard records that meet the following criteria are included:

• The Assignment lookup is populated with a value.
• The value in the Status field matches one of the values displayed in the Timecard Statuses field on the Est Vs Actuals custom setting.
• The Approved checkbox is selected.
• The Billable checkbox is set to false.

To work out the Revenue Pending Recognition percentage, the following calculation is used:

(Sum of approved timecard hours/Estimated Hours at Completion) * 100

To work out the Revenue Pending Recognition amount, the Revenue Pending Recognition percentage is multiplied by the value in the Bookings field on the project record.

If you are using the integration between PSA and Revenue Management:

• Revenue Recognized to Date = Sum of the recognized values in a given month, based on the recognition date in Revenue Management.
• Pending Recognition = Revenue Recognized to Date value subtracted from the value on the relevant % Complete: Project record that has a revenue type of Actuals in PSA.
• Scheduled Revenue = Value on the relevant % Complete: Project record that has a revenue type of Forecast in PSA.

For more information about the fields on a project record, see Project Fields.

If you are using the integration between PSA and Revenue Management and you run a revenue forecast on an open project, actual revenue is treated in the following way when there are closed monthly time periods:

• Closed period, full amount recognized: the full amount is displayed in the Revenue Recognized to Date field on the revenue forecast record for the closed time period.
• Closed period, partial amount recognized: the part that has been recognized is displayed in the Revenue Recognized to Date field on the revenue forecast record for the closed time period. The remainder is displayed in the Revenue Pending Recognition field on the revenue forecast record for the next open time period.
• No open time period within project or milestone duration: a revenue forecast record is created for the next available open time period and the revenue is displayed in the Revenue Pending Recognition field on this record. If the revenue is subsequently recognized and you run Revenue Forecasting again, the revenue is moved into the Revenue Recognized to Date field on the revenue forecast record for the time period that corresponds to the date the revenue was recognized in Revenue Management.

If a project is open and there are closed periods containing scheduled or unscheduled hours within the project or milestone duration:

• Closed period: any scheduled hours in the closed period become unscheduled. The revenue from the unscheduled hours is spread evenly between open monthly time periods that do not contain any scheduled or actual revenue, with the exception of empty months that fall between months containing scheduled or actual hours. If all monthly time periods in the project or milestone duration contain scheduled or actual revenue, the revenue that has become unscheduled is moved into:
  • The final monthly time period within the project duration for projects.
  • The monthly time period that contains the target date or, if populated, the actual date for milestones. If the milestone target date or actual date falls outside the project duration, the project end date is used instead.
• All periods closed in project or milestone duration: any scheduled or unscheduled revenue is ignored by Revenue Forecasting.

If you are not using the integration between PSA and Revenue Management and you run a revenue forecast, the revenue is treated in the following way when a project is open or a milestone is not complete and there are closed periods within the project or milestone duration:

• Closed period: any scheduled hours in the closed period become unscheduled. The revenue from the unscheduled hours is spread evenly between open monthly time periods that do not contain any scheduled or actual revenue, with the exception of empty months that fall between months containing scheduled or actual hours. If all monthly time periods in the project or milestone duration contain scheduled or actual revenue, the revenue that has become unscheduled is moved into:
  • The final monthly time period within the project duration for projects.
  • The monthly time period that contains the target date or, if populated, the actual date for milestones. If the milestone target date or actual date falls outside the project duration, the project end date is used instead.
• All periods closed in project or milestone duration: any scheduled or unscheduled revenue is ignored by Revenue Forecasting.

• Start Date = April 12.
• End Date = June 23.
• Bookings = $20,000 (total project revenue).
• Total Hours = 240 (taken from field specified in Total Hours Field on Project picklist in Revenue Forecast Setup).
• Recognition Method = % Complete.
• The monthly time period records for March and April have the Closed for Forecasting checkbox selected.

There are two assignments on the project.

Assignment A has the following attributes:

• Assigned to resource: Sally Jones.
• Bill Rate = $0.
• Cost Rate Amount = $100.
• Start Date = April 12.
• End Date = June 23.
• Total scheduled hours = 120.
• Schedule, including schedule exceptions:
  • 40 hours in April.
  • 40 hours in May.
  • 40 hours in June.

Assignment B has the following attributes:

• Assigned to resource: John Smith.
• Bill Rate = $0.
• Cost Rate Amount = $150.
• Start Date = April 12.
• End Date = June 23.
• Total scheduled hours = 120.
• Schedule, including schedule exceptions:
  • 40 hours in April.
  • 40 hours in May.
  • 40 hours in June.

The following diagram gives details of the dates, time periods, and records included in the forecast.

When Revenue Forecasting is run on the project, the following fields are updated on the revenue forecast records relating to each monthly time period.

The following revenue forecast type records are created.

Notes

In a weighted % Complete calculation, each resource’s scheduled hours are multiplied by their weighting, such as cost rate, to give a total value for their effort on the project. The sum of this value for all resources gives us a total value of the effort on the project as a whole.

Sally Jones has 120 hours on the project at a cost rate of $100
Value of effort on the project: 120*100 = $12,000

John Smith has 120 hours on the project at a cost rate of $150
Value of effort on the project: 120*150 = $18,000

Total revenue, such as Bookings: $20,000
Total value of the effort on the project: 12,000+18,000 = $30,000

The total revenue of the project is divided by the value of the total effort to give a value per hour on the project: 20,000/30,000 = $0.6666667

Each actual and scheduled hour a resource has on the project is multiplied by their own weighting, and then by the value per hour to give the revenue forecast (Hours * Weighting) * Value per hour.

For April:

• Sally Jones worked 38 hours with a cost rate of $100, which is (38*100)*0.6666667 = $2,533.30
  
• John Smith worked 35 hours with a cost rate of $150, which is (35*150)*0.6666667 = $3,500.00

As April is closed for forecasting, there is no scheduled revenue and the total revenue forecast for April is 2,533.33 + 3,500.00 = $6,033.33.

For May:

• Sally Jones worked 42 hours (42*100)*0.6666667 = $2,800
• John Smith worked 45 hours (45*150)*0.6666667 = $4,500

The total revenue forecast for May is 2,800.00 + 4,500.00 = $7,300. As the actual hours exceed the scheduled hours, there is no scheduled revenue in May.

For June:

• Sally Jones has 40 hours scheduled (40*100)*0.6666667 = $2666.67
• John Smith has 40 hours scheduled (40*150)*0.6666667 = $4,000.00

Unscheduled revenue is not supported when using this calculation method.

• Start Date = March 12.
• End Date = May 23.
• Bookings = $18,000.
• Total Hours = 120 (taken from field specified in Total Hours Field on Project picklist in Revenue Forecast Setup).
• Recognition Method = % Complete.
• The monthly time period records for February and March have the Closed for Forecasting checkbox selected.

There is one assignment with the following attributes:

• Assigned to resource: Sally Jones.
• Bill Rate = $0.
• Start Date = March 12.
• End Date = May 23.
• Total scheduled hours = 100.
• Schedule or schedule exceptions are:
  • 40 hours in March.
  • 40 hours in April.
  • 20 hours in May.

The following diagram gives details of the dates, time periods, and records included in the forecast.

When Revenue Forecasting is run on the project, the following fields are updated on the revenue forecast records relating to each monthly time period.

The following revenue forecast type records are created.

Notes

In March, only 38 of the 40 scheduled hours were submitted and approved in timecards. The amount in Revenue Pending Recognition is (38/120) * 18,000 = $5,700. As the full amount is recognized, no revenue rolls into April when the March time period is closed.

The scheduled revenue for the remaining two hours in March is ignored when the period is closed.

In April, Sally Jones works two hours more than scheduled to make up for March. 120 hours is still the total hours for the project, so in Revenue Pending Recognition there is (42/120) * 18,000 = $6,300. As the number of timecard hours exceeds the number of scheduled hours, there is no scheduled revenue in April.

In May, there are 20 scheduled hours, which means the amount in Scheduled Revenue is (20/120) * 18,000 = $3,000.

The whole project has only 100 hours out of the total planned 120 hours in timecards or schedules. The remaining 20 hours corresponds to $3,000 of revenue, which goes into the first period that does not contain any actual or scheduled hours, or the last period in the project if there are no periods without any actual or scheduled hours. In this example, the $3,000 goes into Unscheduled Revenue in May.