# Revenue Recognition and Billing Calculations for CP/FP

Applies to: Dynamics GP 2010Dynamics GP 2013

## TechKnowledge Content

Question:
How is Revenue Recognition and Billing calculated for Fixed Price and Cost Plus projects?

 Forecast Actual unit cost Qty total cost baseline rev baseline actual unit cost Overhead Qty total cost Project 1 Cost Cat 1 100 10 1000 100 2000 43.27 30 1 73.27 Cost Cat 2 100 10 1000 100 2000 43.27 30 1 73.27 Project 2 Cost Cat 1 100 10 1000 100 2000 43.27 30 1 73.27 Cost Cat 2 100 10 1000 100 2000 43.27 30 1 73.27
For an uncombined Cost to Cost Project:

Actual Total Cost/ Forecast Total Cost = Cost % Completed

73.27/1000=7.33%

**7.33%*2000=\$146.60

For a combined Cost to Cost Project:

Actual Total Cost for this budget item/ Forecast Total Cost for all Cost Categories on the project = Cost % Completed

73.27/4000=1.83%

**1.83%*8000=\$146.60

For a combined Cost to Cost Project and Contract:

Actual Total Cost for this budget item/ Forecast total cost for all Cost Categories on the contract =Cost % Completed

73.27/4000=1.83%

**1.83%*8000 =\$146.60

For an Uncombined Effort Expended Project:

Actual Total Quantity/Forecast Total Quantity= % Quantity Completed

1/10 =10%

** 10% *2000=\$200

For a Combined Effort Expended Project:

Actual Total Quantity for this budget item/ Forecast Total Quantity for all Cost Categories = % Quantity Completed

1/20= 5%

** 5%*4000=\$200

For a Combined Effort Expended Project and Contract:

Actual Total Quantity for this Budget Item/ Forecast Total Quantity for all Cost Categories on the Contract

1/40=2.5%

**2.5%*8000=\$200

** Once the percentages are determined they are then multiplied by the forecast billing amount to determine a ‘recommended’ billing amount or revenue recognition amount.