This formula is similar to the Loaded Labor Plus Non-labor w/Burden w/Fee formula; however, this formula includes in the recognition of revenue fee incurred on labor as well.

The program first calculates revenue amount for the loaded labor portion of the formula. This process is the same as that used to Compute Revenue using the Loaded Labor Rate formula.

The program applies the labor fee percent from the Manage Revenue Information screen to the labor revenue. The program checks for overrides on the Manage Cost Fee Overrides screen and applies them, if needed.

Next, the program computes allowable non-labor and burden revenue. This process is the same as that used to compute revenue using the Loaded Labor Plus Non-labor plus Burden on Non-labor formula.

The program then calculates allowable fee on non-labor. Once allowable costs and burdens are determined, fee is applied. A fee percentage is determined at the project level at which revenue is computed. The program multiplies this percentage by allowable costs to determine the fee amount. Fee overrides are next taken into consideration. The fee overrides are set up on the Manage Burden Fee Overrides screen and the Manage Cost Fee Overrides screen. You set fee overrides by account for both direct and burden costs. Overrides can exist at higher project levels. For example, you set up a three-level project with the revenue formula at level 2. Costs are charged at level 3. The project has a fee percentage of 10%, with the exception of travel costs, which receive a fee of 2%. You can set up a fee override percentage of 2% at the top level of the project for all project accounts to which travel is charged. This override is observed when revenue is calculated. Overrides can increase or decrease fee calculations.

Fee overrides set on direct accounts are also taken into consideration in the calculation of fee on associated burdens. In the example, fee on direct travel costs is limited to 2%. Assume that travel costs are burdened with G&A. The fee calculated on the G&A applied to that travel is also limited to 2%.

Suppose you set a fee override for a given cost pool. You can set an additional override for an element of that cost pool. In this instance, Costpoint uses the override that applies a lower fee rate. For example, you set a fee override of 3% on the G&A pool. Then you set a cost fee override of 2% on travel accounts. Travel is burdened with G&A. In this instance, travel and its associated burdens (G&A) have been identified with a fee override percent of 2%. However, G&A has additionally been identified with a fee override of 3%. The lower of the two fee overrides (2%) is applied.

The next step is to apply contract fee ceilings. You can set contract fee ceilings on the Manage Revenue Information screen. Set funded value ceilings on the Manage Project Billing Information screen. If a code of R displays next to the ceiling amount, the ceiling is used for revenue purposes. If total fee computed exceeds the fee ceiling, a credit is placed in the revenue account of the owning organization at the project level at which the revenue formula is entered. Thus the amount of fee calculated is the allowable fee.

Allowable fee is added to allowable direct costs to arrive at a total revenue amount. The program compares this revenue amount to the Contract and Funded Values set on the Manage Total Ceilings screen. If a code of R displays next to the amount, this value is used as a total revenue ceiling amount.  If a code of A displays next to the amount, this value is used as a total revenue and billing ceiling amount. Revenue for the fiscal year up to and including the subperiod being calculated is summarized to arrive at year-to-date revenue recognized. Prior year revenue on the Manage Prior Year Cost and Revenue screen is summarized and added to year-to-date revenue to arrive at contract to date revenue recognized.

If total revenue computed exceeds the revenue ceiling, a credit is placed in the PROJ_SUM table on the revenue account line of the owning organization at the project level at which the revenue formula is entered. Thus the amount calculated is allowable total revenue.

If you are posting revenue by performing org, you need to run the Redistribute Revenue screen at this time to reallocate revenue across organizations that incurred the over-ceiling costs and fee proportionately.

Please note that revenue is calculated on a period-by-period basis. Allowable costs and fee incurred for a given period constitute revenue for that period. Adjustments made to prior period costs are reflected in the revenue recognized for that period. For example, assume the current period for revenue calculation is period 5. You enter adjusting timesheets into period 3 for corrections to costs incurred in period 3. Financial Statements for period 3 are final, and are not rerun for this period. When revenue for period 5 is calculated, allowable costs and fee are recognized as current period revenue for period 5 along with revenue on the adjusted timesheets entered in period 3. In the Project Summary table, revenue for period 3 does not change. When you post the revenue, revenue is summarized in the Project Summary table for all periods of the current fiscal year up to and including the period selected. In the GL_POST_SUM table, revenue account balances are summarized for all periods of the current fiscal year up to and including the period selected. The difference is posted to the current period in GL_POST_SUM. Therefore, on a period-by-period basis, revenue amounts in GL_POST_SUM may not equal revenue per the Project Summary table. The amounts tie on a YTD basis, however.