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Title: Managing Fixed Level of Effort contracts in Unanet

Brief description:

This entry addresses how fixed level of effort engagements are managed in Unanet. With this type of contract there is a fixed level of effort, typically by hours, for each individual working on the contract. There is a fixed billing ceiling, and labor and expense is billed as incurred at a negotiated rate until the ceiling is reached. In Unanet, these projects are treated as T&M projects, and this Quick Topic will cover the configuration of the T&M project. 

Relevant metrics to track on a fixed level of effort project include:

  • Backlog of billable dollars to date
  • Revenue, expenses, and margin

What’s covered in this document:

What you'll need to do

Create (or modify) a project in Unanet and ensure it is configured with a T&M Billing Type. Set up the ceiling value and cap the Billing and Revenue based on that ceiling.

Set up an account to record the revenue that is capped after the ceiling is exceeded.

Who needs to be involved

You will need to create and/or modify existing projects; users with the necessary contract information and Unanet access will need be involved in this process.

The Unanet roles that are necessary to complete the Project setup are the P&R Admin role or the Project Manager role.

The Unanet role that is necessary to complete the Account setup is the Administrator role.

Configuration

This section describes the base configuration, metrics and items to include when setting up a new project.

Project Profile Setup:

On the Project Profile Accounting tab, enter the following information:

  • Billing Type = T&M
  • Funded Value = Billing ceiling
  • Check the option to Limit the Billing to Funded Value less Fixed Fee
  • Check the option to Limit Revenue to Funded Value less Fixed Fee


Account Setup:

The Posting Group associated with the Project must be setup to find the appropriate account to record the Funding Cap adjustment for Revenue. As a best practice, one account will be setup in the Chart of Accounts and used in the Posting Group to record this information.

  1. If the account does not already exist, enter it in to the Chart of Accounts from the Admin - Setup - Accounts list.
  2. Once the account is created, enter the account as a Fixed value in the Default Posting Group for the Funding Cap Adjustment - Revenue account category.

Ongoing Management

Invoicing

  • Invoice labor as incurred.
  • After the ceiling is reached, the system will automatically record any Revenue to the Funding Cap Adjustment revenue account.
  • After the ceiling is reached, no additional Billing will be recorded or Posted for the project.


Relevant metrics

Hours remaining by Employee, Labor Category and/or Total

Help Docs - Project Performance Report (Total)

Help Docs - Project Periodic Performance Report  (Periodic)

Backlog

Help Docs - Project Accounting - Project Revenue & Funding Summary Report (Total)

Revenue, Expense, Margin

Help Docs - Project Cost Summary (JSR) Report (Total)

Additional Information

KC - Foundations of Reporting


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