Scenario
The Advanced Project Profitability feature gives you access to an enhanced Project Profitability report based on Items and Accounts. However, computations for Actual Revenue, Committed Revenue and Total Revenue Computation are sometimes misinterpreted by other users.
Pre-requisite:
Setup > Company > Enabled Features > Company subtab > Project section > Advance Project Profitability = True
Solution
- Navigate to Setup > Accounting> Project Profitability
- Click Edit link
- Click Define Columns
- Actual Revenue: Click Edit
- Transaction Subfilter: Select Actual
- Type column: Select Account Type
- Account Type: Select Other Income, Income
- Committed Revenue: Click Edit
- Transaction Subfilter: Select Committed
- Type column: Select Account Type
- Account Type: Select Other Income, Income
- Total Revenue: Click Edit
- Transaction Subfilter: Select Actual + Committed
- Type column: Select Account Type
- Account Type: Select Other Income, Income
- Click Settings
- Sales Order: Click Checkbox
- Click Finish
To illustrate the behavior, see scenario below:
Project record has 4 Fixed Fee Rules with the same Service Items:
Rule 1: 3/1/2021: 10,000
Rule 2: 4/1/2021: 15,000
Rule 3: 6/1/2021: 20,000
Rule 4: 7/1/2021: 25,000
- Charges have been generated for all the Rules
- Created Sales Order for the Project: Sales Order Item have 4 quantities (number of rules) and 17,500 (70,000/4) as rate for a total Sales Order of 70,000 (Total of all the rules)
- Invoiced the first two amounts (10,000 and 15,000)
- Actual Revenue: The total amount being invoiced (10,000 + 15,000) = 25,000
- Committed Revenue: Number of unbilled charges multiplied by the rate generated from the SO (17,500 x 2) = 35,000
- Total Revenue: 60,000 (Actual Revenue + Committed Revenue): 25,000 + 35,000
The Total Revenue is not necessarily matched with the total Sales Order amount. This behavior happens especially when the Fixed Fee Rules have different amounts for each rule.