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This setting is one of the most fundamental in Projector. It applies to Fixed Price contracts and is designed to support the standard accounting practice of recognizing revenue in accordance to how much work has been completed. This percent complete method requires that you have a plan in the form of booked hours. Booked hours represent the work you plan to do and when you will do it. That way Projector can look at what you have done, what you plan to do, and determine how far along you are. Projector uses one of three methodsSystem Settings Editor Reporting Tab to determine how 'done' you are. Each is explained in the table below along with an example.
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Percent Complet Method | Description | Example |
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| Person Hours | The simplest of the three options, all hours are created equal. Work by your CEO will earn revenue at the same rate as work done by an intern. | $100k contract for 100 hours. Each hour of work earns $1k of revenue. |
| Resource Direct Cost | The internal cost of each employee determines the proportion of revenue allocated to them. RDC is determined at the installation level in the RDC Editor. If two people work equally on a project, but one of them is paid twice as much, then the higher earner will have 2/3rds of the revenue resource cost associated with them. When the work is performed also determines where the revenue lands. For example, if the higher cost employee works more at the beginning of the project than his coworker, then a higher proportion of the revenue is allocated to the beginning of the project. | $100k contract for 100 hours.
Senior consultant will earn cost $66k of revenue to the junior's $33k. |
| Contract Revenue | The expected billing rate for each employee determines the proportion of revenue allocated to them. Contract rates can be looked up on the rates tab of the Project Editor or the rates tab of the Role Editor. See How are rates applied to time cards? for a detailed explanation of where and how rates are applied.This works the same as for Resource Direct Cost, but contract rates are used instead. If two people work equally on a project, but on a T&M basis one of them charges twice as much, then the higher earner will have 2/3rds of the revenue associated with them. When the work is performed also determines where the revenue lands. For example, if the higher billed employee works more at the beginning of the project than his coworker, then a higher proportion of the revenue is allocated to the beginning of the project. | $100k contract for 100 hours.
Senior consultant will earn $66k of revenue to the junior's $33k. |
Projector provides two other means of revenue recognition on Fixed Price projects. These are a revenue schedule which recognizes revenue according to a fixed calendar and manual recognition in which you decide the amount to recognize and when it should be recognized. To learn more about revenue recognition in general please see Revenue Recognition Management Portal - Rev Rec. If you are using a revenue schedule or manual revenue recognition then you may think the choice here doesn't apply to you, but you would be wrong! If you have not yet locked down revenue through your schedule or manually, then Projector reports fall back on the Percent Complete method. To keep your reports accurate, you should choose the method that best suits you as a fallback.
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- UBH for Yield based reports - Yield based utilization compares the number of hours someone worked vs. what you expected them to work. So if Charlie bills 30 hours and is expected to bill 40 hours then his yield utilization is 75%.
- Calculating the RDC of a resource - RDC of a resource depends on whether the resource is salaried or hourly. For this example, let's assume salaried. If Charlie is paid $100 an hour and has 40 hour work week, then his cost is $4k.
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A quick way to figure out what your organization should choose is to ask yourself what a typical resource's basis hours are. For example, 2080 hours a year represents normal working hours for a 40 hour per week resource.
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The common factor in both cases is the number of hours that Charlie is expected to work in a week, 40 hours. And that is exactly where your choice for this setting comes in. Let's look at two different cases and just focus on billable utilization (case 1). In a week with no time-off and no vacation we've already established that Charlie had 75% utilization for billing 30 of 40 hours. But now let's say there is a holiday that week. You can look at it in two ways:
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