Costpoint first calculates the total allowable estimate at completion (EAC) amount by adding the estimate to complete (ETC) amount on the Manage Revenue Information screen to the inception-to-date (ITD) allowable cost and then subtracting the ITD revenue loss amount (also on the Manage Revenue Information screen), if any.

Next, it calculates the ITD percent complete by dividing the ITD allowable cost by the total allowable EAC amount. Costpoint multiplies this percentage by the funded value for the project at the level of the revenue formula to get the ITD revenue before loss. It then subtracts the ITD revenue loss amount, if any, from the ITD revenue before loss to get the final ITD revenue. Costpoint calculates the previous year-to-date (YTD) revenue recognized by adding the revenue in the project ledger for the current fiscal year up to and including the subperiod being calculated.

Next, it sums the revenue from the prior year table for fiscal years earlier than the selected fiscal year, and adds that value to the YTD revenue previously recognized to get the ITD revenue previously recognized. Costpoint then subtracts the ITD revenue amount previously recognized from the ITD revenue to recognize to get the ITD revenue not yet recognized; this amount can be positive or negative.

If the ITD revenue exceeds the total project ceiling, the over-ceiling amount is recognized, and reduces revenue to the ceiling amount.