Difference Between CP/FP and Time and Materials in Project Accounting

TechKnowledge Content

The document below will go through the main differences between the types of accounting methods, types of fees, etc. for each type of project.

Time and Materials
Direct Billing
NC/NB Billing types
When Performed and When Billed Cost Recognition
Rate Table
Accrued Revenues
Service Fee
Billing and Revenue together

TM Profit Types:
Billing Rate
Markup %

Cost Plus/ Fixed Price
Earnings in Excess of Billings (EEB) and Billiing in excess of Earnings (BEE) Accounts
Completion Method
Cost-to-Cost, Effort Expended, and Completed Cost Recognition
STDbilling type only
No Rate Table
No Accrued Revenue
Retention Fee
Separate Revenue Recognition

CP Profit Types:
% of Actual
% of Baseline
Profit/Unit- Fixed
Total Profit

FP Profit Types:
% of Baseline
Total Profit

This article was TechKnowledge Document ID:24624

Need more help?

Expand your skills
Explore Training
Get new features first
Join Microsoft Insiders

Was this information helpful?

Thank you for your feedback!

Thank you for your feedback! It sounds like it might be helpful to connect you to one of our Office support agents.