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Title: How Commercial Services companies report on Revenue in Unanet

Brief description:

This QuickTopic illustrates a Best Practice configuration of the Job Cost Summary report for the commercial services industry that generates revenue through fixed priced and/or time and materials engagements. The QuickTopic refers only to the Project Cost Summary report configuration, and assumes that other required billing setup is complete. Please see additional topics on revenue recognition for fixed priced and time and materials engagements for this information.

What’s covered in this document:

Introduction to the Job Cost Summary report

Unanet's Job Cost Summary report is a highly customizable report allowing individuals with project reporting access the ability to see total costs and revenue on a project. The report elements are defined by the Unanet Administrator within the Cost Report setup menu available from the Admin - Setup dashboard.

Commercial Services calculation of Revenue

Many commercial service industry customers receive Revenue from time and materials and/or fixed priced engagements. Unanet displays revenue in the Job Cost Summary report from these sources using the following methods:

Time and Materials:

  1. All labor bill amounts are determined as hours multiplied by effective bill rate.
  2. All expense bill amounts are determined as expense amount multiplied by expense type markup.

Fixed Priced:

  1. If not a milestone fixed-price item (bill on completion), must have a bill date <= the report date.
  2. If a project milestone fixed-price item, project must have a completion date <= the report date and project must have an entered percent complete of 100%.
  3. If a task milestone fixed-price item, task must have a completion date <= the report date and task must have an entered percent complete of 100%.

For a complete description of how revenue is calculated in Unanet, please see the following documentation: Help Docs - Invoice & Posting - Billing & Revenue Post.

Job Cost Summary Report sample

The Revenue tag in the Job Cost Summary Report definition will be used to show the Revenue calculated for each project. A report can be generated to simply show this revenue total. To review the costs or expenses associated with the revenue, consider adding Cost Element and a Cost Structure to define these values.

A commercial service company in the pharmaceutical business has defined the Job Cost Summary report to include the following variables:

  • Labor - Direct Employee Labor, Subcontractor Laobr, Consultant Labor
  • Expenses - Travel, Other Direct Costs
  • Discount - A revenue entry that identifies a potential flat-rate adjustment to the overall revenue for the project.
  • Gross Revenue - Revenue without including the Discount
  • Net Revenue - Revenue considering any Discount
  • Gross Margin - Variance between Net Revenue and Total Cost

The Cost Summary Report definition is shown, below (Click to Enlarge) :

Additional Information

Help Docs - Fixed Priced Revenue Recognition

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