The Contract Value times % Complete Vs. Rate Schedule formula (selected on the Manage Revenue Information screen) compares two different formulas and uses the lower of the two.

This formula uses either Contract Value Times Percent Complete or Rate Schedule times Multiplier plus Non-labor times Multiplier.

Costpoint determines the Contract Value Times Percent Complete by performing the following steps:

1. Determine ITD Revenue (to Recognize) by multiplying the Total Contract Value from the Manage Modifications screen by the Project Percent Complete (entered in this screen).
2. Determine YTD Revenue Previously Recognized by adding all revenue recognized in the project ledger so far this fiscal year.
3. Determine ITD Revenue Previously Recognized by adding all revenue recognized in previous years found on the Manage Prior Year Cost and Revenue screen with the YTD Revenue Previously Recognized (Step #2).
4. Determine Current Period Revenue by subtracting ITD Revenue Previously Recognized (Step #3) from ITD Revenue to Recognize (Step #1). This figure (Current Period Revenue) can be either a positive or negative number.
5. Compute Contract Value.
6. Use the smaller of the contract value (Step #5) or the ITD Revenue (Step #1) as the Contract Value times Percent Complete figure.
7. Record amount over the contract value as amount over ceiling. Compare contract value (Step #5) to ITD Revenue (Step #1). If ITD Revenue (Step #1) is larger than contract value (Step #5), the difference is recorded as amount over ceiling. If contract value (Step #5) is larger than ITD Revenue (Step #1), no amount over ceiling is recorded and only the Current Period Revenue (Step #4) is added to previously recognized revenue (Steps #2 and 3).

Next, Costpoint determines the Rate Schedule figure. The Rate Schedule amount is identical to the Rate Schedule times Multiplier plus Non-Labor times Multiplier.

The Rate Schedule times Multiplier plus Non-labor times Multiplier formula (selected on the Revenue Information screen) is based on allowable hours (the lesser of actual or ceiling amounts) multiplied by rate per hour. The rate is derived during the Load Labor Rates process. The labor calculation consists of the following:

• Costpoint multiplies allowable labor hours (the lesser of actual or ceiling amounts) by the calculated billing rate (the Revenue Rate Amount from the LAB_HS table).
• Costpoint multiplies the lower of either a ceiling rate OR actual hourly rate by allowable labor hours. This amount is then marked up by the multiplier rates stored on the Revenue Information screen.
• The rate schedule is determined by the Revenue Rate Amount from the LAB_HS table. Rates are set up with a rate type of A (Actual rate), B (Billing rate), or C (Ceiling rate).
• The non-labor multiplier is from the Non-Labor multiplier field on the Revenue Information screen.
• Costpoint applies the Labor Multiplier to labor billed at actual or ceiling rates.

After performing calculations using the Rate Schedule times Multiplier plus Non-Labor times Multiplier and Contract Value times Percent Complete formulas, Costpoint selects the lower of the two amounts and updates the PROJ_SUM table.