Project Management

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    Sachin Mistry
    Percent Complete Revenue Recognition for Projects
    Topic posted November 28, 2018 by Sachin MistryGold Medal: 3,500+ Points, tagged Project Billing & Revenue, Project Contracts, Project Management 
    88 Views, 1 Comment
    Title:
    Percent Complete Revenue Recognition for Projects
    Summary:
    Percent Complete Revenue Recognition for Projects
    Content:

    It appears there is functionality to automatically calculate revenue to be recognized based on percent completion. https://docs.oracle.com/en/cloud/saas/project-portfolio-management/18c/oapjb/manage-project-contract-revenue.html#OAPJB155908 ?

    Curious if anyone here has implemented this. If so will like to know whether the below is supported.

    E.g Total Contract value = 1,000,000 for Project 123

    Budget for project 123 = $750,000

    Project runs for 3 months and % completion is as below:

    Month1 34% --> How does Oracle derive this number? Based on invoices for this project?

    Month 2 33%

    Month 3 33%

     

    Comment

     

    • Perry Unrau

      In the link you provided, there are several related help topics, including Percent Complete Revenue Amounts: How They're Calculated.  This should answer many of your questions.  Specifically with Percent Complete Revenue, the Percent Complete value can be entered manually on the contract, derived from Project Progress, or derived from Project Progress and then manually overridden on the contract.  Please note the Percent Complete value is an inception-to-date percentage and the calculation is also inception-to-date, where the prior amount of revenue being recognized by billing events are subtracted to arrive at the new billing event amount to recognize as revenue.

      Perry