About the PM Revenue Projections Form
Use this form to review the impact to revenue projections within PM Cost Projections.
Projection numbers are “realtime” (meaning that, as you update cost projections, those updates flow to revenue), and you can make adjustments and ultimately post the revenue projections.
To enable this feature, the Activate revenue projection feature checkbox was added to the PM Company Parameters form's Projections tab. This checkbox allows administrators to enable, or disable, the Revenue Projections button for users to review revenue projections from the PM Cost Projections form.
Revenue Projections should be used in the following instances:
For T&M contracts where there is no contract amount, use to calculate the contract to be equal to the billed amount, cost plus markup, or projected cost plus markup.
For Progress contracts where the unit price is fixed but you are paid on units completed, use to calculate the contract units based on the projected units established in PM Cost Projections.
For Progress contracts with unprocessed change orders where costs have already been incurred, use to override the contract amount by plugging the projected revenue. This will allow reporting cost to revenue on the same basis.
For normal Progress contracts based on fixed contract units and/or amounts that are typically only revised by change orders, this form should not be required and does not have to be updated monthly. For those contracts, it should only be used as described above to account for change orders in a month prior to their final processing. In a subsequent month, when the change orders have been processed, the adjustment should be removed to bring the projected revenue back to the contract amount.
Many contract reports will display the Revenue Projection if not zero, but will otherwise show the Current Contract. Therefore, for most contracts, revenue projections are not required and will only be used as an override.
Both the Current Contract and Projected Contract amounts are displayed above the grid.
You can manually enter projections, have the program calculate projections for you (via the Calculate Projections option, Options menu), or use a combination of both methods. Regardless of which method you use, the following applies:
Contract must be valid and specified items must exist on the contract.
Contract must have a status of 'Open' unless you allow posting to hard- and/or soft-closed jobs (flags in PM Company Parameters), in which case, contracts with a status of 'Soft-Closed' or ‘Hard-Closed’ are also eligible.
Contract cannot exist in any other projection batches.
Batch month must be open in subledgers.
The projections grid shows you the Current Units and Dollars, Future CO's Units and Dollars, and Previous Projected Units and Dollars, and provides columns for entering adjusted units and/or dollars or projected units and/or dollars. Values entered directly in the Projected Units/Projected Dollars columns are considered 'plugged' values, regardless of whether you are entering projections manually or overriding initialized values. On several reports, this value will be used instead of the Current Contract.
If you initialized projections, the projected values (adjusted units/dollars and projected units/dollars) will be based on the projection method used during initialization (i.e., Units from Cost Projections, Billed Units and Dollars, Actual Cost Plus Markup Percent, or Projected Cost plus Markup). You can 'plug' the projected values for any contract item by either manipulating the adjusted units or dollars or the projected units or dollars.
If plugging 'adjusted' values, you will typically specify the amount by which to increase or decrease the final projected values. For example, if your current projected units are 20,000.000 and the final projected units will be 25,000.000, you would enter 5,000.000 as the adjusted units. However, if there are no projected values (i.e. adjusted and projected values are all 0.00), the adjusted values will become the final projected values (e.g. if adjusted units are 25,000.000, final projected units will be 25,000.00).
If plugging 'projected' values, just enter the final projected amount (units or dollars), and the system will automatically calculate the adjusted unit and/or dollar values. To 'unplug' a value, set the Projected Units/Dollars to zero. This will allow the WIP reports to use the Current Estimate.
Resetting Projected Amounts for Contract Items
The Reset Projected Item Amounts option (Options menu) allows you to reset projected amounts for items on the contract to their previous projected units and/or dollars. For example, you initialize projections for a contract and plug the values for several items on the contract. You then determine that the plugged values are incorrect for one or more items. Using this option, you can reset the projected values for those items to their Previous Projected Units and/or Previous Projected Dollars.
Projected values must be reset for each item individually. This allows you to correct values for specific items without affecting other items on the contract.
You can add attachments to any contract item in the grid. Just highlight the contract item, select the Attachments icon (or the Scanning icon if attaching a scanned image), attach the image, and click OK. Once the projection batch is posted, attachments are added.