17393

Move revenue formula from Top Level to Lower Level: Cost Plus Fixed Fee (CPFF) and Fixed Amount type

What is needed to move the Revenue Formula and funding from the Top Level project to Lower Level project? The projects have either Cost Plus or Fixed Amount formulas.

Resolution:
Important Note: This procedure applies to the current fiscal year only.

• If you want to change the revenue level for prior fiscal years for the Project Status Reports, you will need to edit the information in the Prior Year Cost and Revenue screen for both the top level and the lower levels of the project, by moving any revenue off of the top level and onto lower levels.
• Failure to do this could result in ceilings not being properly observed.
• Also, this procedure assumes that you are Not using the Redistribute Revenue process in Costpoint.

To recompute revenue and print project reports, follow the steps below:

1. Before moving the revenue formula, the project tables need to be cleared and the Current Year Revenue needs to be removed from the General Ledger.  
   • Change the revenue formula to anything BUT Do Not Compute to clear revenue calculations from the project tables.
   • When prompted, select the current Fiscal Year.
   • Save Record.  
   • Preview the Revenue posting journal for this project. Be sure to check the box to Include Zero Revenue Amounts. 
   • There should be an entry to reverse all YTD revenue for this project. 
   • Post Revenue Journal.  
2. Since costs must be incurred at or below the revenue formula level in order to be used for revenue computation, for any costs posted to a higher level of the project than the new revenue formula level journal entries, vouchers or correcting time sheets will be needed to move the costs to a lower project level.  
3. Determine where on the project tree the unbilled amounts are being posted currently, and where they will be posted after the revenue formula has been moved.   
   • The unbilled amounts are posted at either the level of the revenue formula, or at the level of the billing formula, whichever is higher.
   • If changing the revenue level changes the level at which unbilled amounts will be posted, you must do a journal entry to move the existing unbilled from the original level to the new level(s). 
4. Note any Inception-To-Date Revenue Adjustment amounts for the existing revenue formula.
5. Delete the revenue formula at the original level, and enter revenue formulas for the lower levels, giving each piece its proper proportion of the total Inception-To-Date adjustment.
6. Zero out the modification Funded and Value information at the top level (or do a negative mod to bring it to zero), then enter the Modifications for Funding and Value at the lower levels.
7. Change the levels on the ceiling and budget information, as required. 
8. Execute the toolkit, Update Contract and Funded Value (Projects/Cost and Revenue Processing/Utilities/Miscellaneous Toolkits).
9. Recompute revenue for the project in EACH period in succession.  
   • If ceilings or fees changed in the year your revenue may be affected. 
10. Computing for each period is necessary to get the appropriate units revenue, if it exists.  
    Note: If you do not have units revenue, you do not need to recompute revenue for each period. In that case your Period revenue will be equal to the Year To Date revenue for that period on all project reports. 
11. Post revenue in current period.
    • Since General Ledger Revenue was cleared for the current period only, posting in prior periods would overstate Revenue on the Financial Statement for prior periods. 
    • If prior period(s) revenue needs to be adjusted for Financial Reporting, Journal Entries would need to be created for prior periods to move the revenue to the lower level project. Or in Step #1, the reversal of revenue would need to be posted for each prior period.  
12. Update Project Status Report tables and Create Project Report Tables and print any required project reports for each period.