Dated Resource Bill Rates and Revenue Forecasting

This topic explains how deliverable revenue forecasts on projects work when assignments or resource requests use dated resource bill rates. For information about setting up Revenue Forecasting, and about the Deliverable recognition method, see Setting up Forecasting and Deliverable Recognition Method for Revenue Forecasting. For an introduction to dated resource rates, see (Beta) Dated Resource Rates Overview.

When you run project revenue forecasts using the Deliverable recognition method, if any assignments or resource requests are using dated resource bill rates, those rates are used to calculate the record's revenue. Any custom bill rate fields that might be configured on the active revenue forecast setup record, and static bill rate fields, are ignored.

Warning:

If an assignment or resource request using dated resource bill rates is not matched to a bill rate card, or there is no valid rate on the matched bill rate card, no revenue will be forecast for that record. Ensure that each record you expect to be included in the revenue forecast has a bill rate card with rates covering the record's entire duration.

Records Included in Project Revenue Forecasts

When the Use Dated Resource Bill Rates checkbox is selected on an assignment or resource request, values in any other rate fields on the record have no bearing on whether or not the record is included in project revenue forecasts.

Assignments and held resource requests are included in project revenue forecasts via their EVA records. Their EVA records are included when:

• The Type field in the Time Period lookup has a value of Month.
• The time period set on the EVA falls between the project start and end dates, or overlaps one of those dates.
• For EVA records generated for assignments, the related assignment has the Billable checkbox selected.
• For EVA records generated for held resource requests, the related resource request does not have an associated assignment.

Notes:

Resource requests might be excluded from project revenue forecasts depending on how the active revenue forecast setup record is configured. For more information, see Revenue Forecast Setup Fields.

You can exclude specific assignments and resource requests by nominating a particular checkbox to denote that the record should be excluded. For more information, see Excluding Selected Assignments and Resource Requests (Deliverable and % Complete).

How Revenue is Calculated

When assignments and resource requests using dated resource bill rates are included in a project revenue forecast, the revenue amounts for those records are derived as follows:

• For an assignment, the following formula using values from its monthly EVA record is used:

  Scheduled Billable Amount - Actual Billable Amount

  The result is summed into the Scheduled Revenue field on the Deliverable: EVA revenue forecast type record for the same time period. To understand how the Scheduled Billable Amount is calculated, see (Beta) EVA Calculations when Dated Resource Bill Rates Apply to Assignments and Timecards.

• For a held resource request, the value in the Requested Billable Amount field on its monthly EVA record is summed into the Scheduled Revenue field on the Deliverable: EVA revenue forecast type record for the same time period. To understand how the Requested Billable Amount is calculated, see (Beta) EVA Calculations When Dated Resource Bill Rates Apply to Resource Requests.

• For an unheld resource request:

  • With a schedule, the dated resource bill rates in effect on the working days set out in the schedule are applied. The amounts calculated for each applicable rate are then summed. For example, a resource request spans one week (Monday - Friday) with no schedule exceptions, and works 8 hours per day. On Wednesday, the bill rate increases from $100 to $120. The revenue amount is therefore: $100 * 16 hours + $120 * 24 hours = $4480
  • Without a schedule, the requested hours are spread equally across the resource request's date range and the dated resource bill rates in effect across those dates are applied. The amounts calculated for each applicable rate are then summed. For example, a resource request has 35 requested hours and its date range spans seven days. The hours are spread equally across the seven days (5 hours per day). On the fourth day, the bill rate increases from $50 to $75. The revenue amount is therefore: $50 * 15 hours + $75 * 20 hours = $2,200

  The revenue amount calculated for an unheld resource request is summed into the Unscheduled Revenue field on Deliverable: Resource Request revenue forecast type records.

Mid Month Forecasting When Using Dated Resource Bill Rates

This section assumes you are familiar with mid month forecasting as explained in Calculating Accurate Mid Month Forecasts. The only differences when using dated resource bill rates are explained below.

When a project's mid month forecast includes assignments and resource requests using dated resource bill rates, those rates are used to calculate the record's revenue for the days remaining after the actuals cutoff day to the end of the current month. Each day's hours are multiplied by the dated resource bill rate in effect that day.

For example, imagine that 5 working days remain after the actuals cutoff day to the end of the current month. The forecast includes an assignment or resource request that is scheduled to work 3 hours per day (if the resource request is unheld without a schedule, the 3 hours per day are a result of its requested hours being spread equally across its date range). The record's dated resource bill rate is $100 but for the last two days it increases to $120. The record's revenue for the remaining 5 days of the current month is therefore: ($100 * 9 hours) + ($120 * 6 hours) = $1,620

For the months before and after the current month, revenue is calculated as explained above in How Revenue is Calculated.