Oracle Projects next calculates the total potential revenue that can be accrued for each project. Potential revenue is the full revenue amount that could be accrued if enough funding is available. Projects that use task level funding calculate the potential revenue for each task, while projects that are funded at the project level have a single potential revenue amount for the project.
Oracle Projects calculates the bill amounts for all expenditure items when calculating revenue, except for cost and event billing projects, which do not bill expenditure items.
For projects that use as-work-occurs (or time and materials) revenue accrual, the total potential revenue is simply the sum of the revenue of all expenditure items plus events.
For these projects, Oracle Projects calculates the revenue for each expenditure item by applying a bill rate or markup. Items that have partially accrued revenue due to having previously reached a hard limit do not have their revenue and bill rates recalculated. For information on how Oracle Projects determines bill rates for billable expenditure items, see: Using Rates for Billing.
After all bill rates are assigned, Oracle Projects rejects those items for which no bill rate or markup is found, and creates distribution warnings.
Note: If a markup is used to calculate revenue and bill amount, and the discount applied to the markup results in revenue that is less than the raw cost, then revenue is billed at raw cost.
Oracle Projects also calculates the bill amounts for each item for projects which accrue cost-to-cost revenue based on percent spent, but bill on a time and material basis.
As part of the revenue generation process, Oracle Projects determines job and employee billing titles.
Oracle Projects determines the effective job for labor items first from the task assignment override, then the project assignment override, and finally the primary job assignment. It then uses this job, along with the task job title override, project job title override, and primary job title, to determine the job billing title for each labor item.
Oracle Projects determines the employee billing title for labor items from the task employee billing title override, the project employee billing title, and the primary employee billing title.
See also:
For projects using cost-to-cost revenue accrual method, Oracle Projects uses the following formula to calculate revenue (in the project functional currency) to accrue for the revenue generation run:
CCR(RUN) = Lesser of (Remaining funding available if using hard limit) and ((AC/BC (BR-ER))- AR)
Where, for a project or task: CCR(RUN) = Cost-to-cost revenue for current run
AC = Actual total burdened cost through PA Period on or before the accrue through date
BC = Budgeted baseline burdened cost*
BR = Budgeted baseline revenue*
ER = Entered event revenue
AR = Revenue previously accrued in PA Period on or before accrue through date
Note: *Oracle Projects uses the cost and revenue budget types that you specify on the Cost-to-Cost billing extension.
Oracle Projects accrues the cost-to-cost revenue using an automatic event with an event type that you specified for the cost-to-cost billing extension.