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Working with Contract Revenue and Costs

The Revenue/Costs window is used to create a spending plan, track maintenance contract profitability, reconcile costs, billing, and revenue, view costs life to date, and view/edit revenue entered.

Revenue/Costs Window Overview

Columns on This Window 

  • Customer
    Displays the customer on this contract.
  • Contract
    Displays the contract ID and description.
  • Contract Revenue
    This column shows the contract amount and percent distribution among cost categories based on the values in the Contract Amount Breakdown window.
  • Contract Costs Actual to Date
    Shows all costs for the life of the contract.
  • Contract Costs Current Year
    Shows the current year's costs.
  • Estimate, Hours
    These columns contain your cost estimates for each cost category and your cost and hour estimates for each labor subcategory.
  • Forecast, Hours
    Estimated cost and hour values initially default into the matching Forecasted Cost and Hours fields but the current Total Forecasted cost is used in the calculation of contract percent complete for POC Revenue Recognition.   
  • Total
    The first Total field has an expansion button that opens the Contract Amount Breakdown window where you can divide the total contract amount among the cost categories.
  • Hours
    Contains the contract's hours to date and for the current year.
  • Calculated Contract Earned
    Based on the following equation: 
    [Total Contract Recognized Costs / Total Forecast Costs] x Contract Amount = Revenue Recognized

  • Calculated Gross Profit
    The Calculated Contract Earned minus the Total Cost.

  • Revenue Recognized
    The revenue recognized (current year or contract-to-date) when using the following revenue recognition method:

    • Revenue Schedule
      The revenue recognized is based on the sum of the posted revenue schedule rows.

    • Percentage of Completion
      The revenue recognized is based on the revenue posted through the POC process. 

  • Billed
    Total amount of invoices created for the contract.

Buttons on This Window

  • Costs Life to Date
    The Contract Costs Life to Date window displays the life-to-date cost amounts for the contract. See Tracking Maintenance Contract Profitability.
  • Revenue Entered
    The Revenue Schedule window displays the revenue entered for the contract. When using the following revenue recognition method:
    • Revenue Schedule
      The contract amount is equally divided by the number of months in the contract period.  A revenue recognition scheduled row is created for each month of the contract, with the apportioned amount of the contract assigned to be recognized as revenue. If you are using the revenue schedule method of revenue recognition, you can edit the revenue schedule to either change an amount that is scheduled to be recognized and/or adjust an amount that has already been posted. See Editing the Revenue Schedule.
    • Percentage of Completion
      The revenue schedule is not created, as the revenue to recognize for the contract is calculated at the time the process is executed (at end of month). See Overview of revenue recognition methods.
    • Manual
      The revenue amount is updated when the generated service invoice is posted.   The schedule is not used. See Overview of revenue recognition methods.



See also:


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