Create a Revenue Milestone

1. Choose the project number on the Revenue Milestones form. Only projects with a WIP relief method of Revenue Recognition display in the drop-down.
2. Enter the milestone number in the Milestone Number field.
3. Enter a description in the (Description) field.
4. Enter the planned complete date on the General tab. The planned complete date is the date you expect to print and post the milestone.
5. Enter the planned cost amounts.
6. Enter the planned revenue amount.
7. Select the milestone cost calculation method on the Revenue Recog tab. This is a required field:
   • Manual - If you choose manual, you must manually enter the milestone costs on the General tab of the Revenue Milestones or Estimate Revenue Milestones forms.
   • % Of Project Cost - This method multiplies the total planned cost by the amount in the Percentage field.
   • % Of Milestone Revenue - This method multiplies the total planned revenue by the amount in the Percentage field.
   • % Of M/S Requirements - This method multiplies all task costs by the amount in the Percentage field. The system adds all forecast costs from the % Complete tab on the Project Tasks form for all task requirements and all projected costs from the resource requirements on the Project Resources Cost tab to get all task costs.
   • Unrelieved Cost - This method calculates the cost that has accumulated since the last revenue recognition milestone posting.
   • Custom - The custom option is reserved code to be used if there are custom processing routines created for your company.
8. Select the milestone revenue calculation method:
   • Manual - If you choose manual, you must enter the revenue amount on the Revenue Milestones or Estimate Revenue Milestones forms.
   • % Over Milestone Cost - The percentage you enter in the Percentage field serves as the markup of the milestone cost. This markup is the revenue that is recognized.
   • % Of Project Revenue - This method multiplies the percentage you enter in the Percentage field by the total planned revenue from the Revenue tab of the Projects form.
   • Custom - The custom option is used if there are custom processing routines created for your company.
9. Select the Requirements tab to add requirements for each milestone. It is not necessary to have a requirement for a milestone.
10. If you are utilizing advance payments, use the Create Advance Payment Invoice and Advance Payment Deduction Amount fields to add advance payment information.
11. Save your changes.

Related Topics

Projects Overview