| # Extension (tpptc0110s000) Use this session to maintain the extensions you need for your fixed contract project. An extension is almost a project in itself and is generally used to invoice unexpected costs to the customer. The revenue recognition method and the cost of goods sold method is defined at the project, extension. RR and COGS can also be determined at the element and activity level depending on the method of RR and COGS selected. The amount approved for invoicing is displayed next to the Ceiling check box. For projects with invoicing types set to Unit Rate, the amount is updated while transferring transactions from the Project Invoicing module to Central Invoicing. For projects, with invoicing type set to Cost Plus the amount gets updated when the transactions are approved for invoicing. Related topics To use extensions Revenue Recognition (RR) and Cost of Goods Sold (COGS) General Project The code that identifies the project. Status The current status of the project. Extension The code that identifies the extension. General Search Key An alternative form of a description used for convenience during searching. Typically, it is an abbreviation, an acronym, or a mnemonic alternative to a full description. Sold-to Bus. Partner The code that identifies the sold-to business partner. Please note that this business partner needs a department code otherwise installments cannot be invoiced. Extension Type Extension Type This field is available only if the extension status is Free. Extension Status Extension Status Invoice Calculation Method Invoice Calculation Method Text If this check box is selected, a text is present. Control Start Time The date and time, according to the project plan, on which work that is related to the extension starts. The input value must be after the start date set in the Project (tppdm6100s000) session. Related topics To enter a date To enter a time Finish Time The date and time, according to the project plan, on which work that is related to the extension is completed. The input value must be after the start date and must be before the finish date set in the Project (tppdm6100s000) session. Related topics To enter a date To enter a time Cost Control Indicates whether the extension is included in cost control. If this check box is selected, you can: Maintain planned and actual purchase orders by extension Control the extension's costs Record progress by extension Record actual costs by extension If this check box is cleared, you need not control the extension cost amount separately, but you can include it in the project costs. Phys. Progress Registration The level at which you want to record the extension's progress. Financial Amount Expected Sales Amount The currency of the expected sales amount for the extension. Expected Sales Amount The expected sales amount for the extension. Ceiling If this check box is selected, the amount entered in the Contract Amount field is considered as the ceiling amount. Note This check box is available only if the invoice calculation method is set to Actual Costs. Approved for Invoicing The amount approved for invoicing. Note If the extension transactions are set to Approved in the Cost Plus Transactions to be Invoiced sessions, the amount is updated. Currency The business partner currency. Contract Amount The contract amount of the extension. Variations are carried out for this amount. You can only enter an amount if the Extension Type field is set to Scope Change. If the Ceiling check box is selected, the contract amount becomes the ceiling amount. This amount is the maximum that can be invoiced. If the ceiling amount is reached LN does not allow you to set the records to Approved. Currency The home currency. Click Rotate Currency to see the amount in the other home currencies. Contract Amount The amount in the home currency. Click Rotate Currency to see the amount in the other home currencies. Rate/Rate Factor The price at which one currency can be exchanged for another currency. In other words, the amount which one currency will buy another currency at a particular time. Rate/Rate Factor The factor by which the amount in the transaction currency or the invoice currency is divided before LN converts it to a home currency. A rate factor is often used for currencies that have a relatively low price, for example, Korean Won. Currency The business partner currency. Provisional Amount The contractual provisional amount. This amount is included in the budget. You can only enter an amount if the Extension Type field reads Provisional Amount. Currency The home currency. Click Rotate Currency to see the amount in the other home currencies. Provisional Amount The amount in the home currency. Click Rotate Currency to see the amount in the other home currencies. Rate/Rate Factor The currency exchange rate to convert the transaction currency to the home currency that is displayed. Rate/Rate Factor The rate factor that belongs to the currency rate that is shown. Options Project Surcharges If this check box is selected, project surcharges can be applied to the extension. Serial number The serial number. Use Holdback If this check box is selected, holdback can be applied to the extension. Provisional Amount Settled If this check box is selected, the provisional amount is settled by posting the invoice in the Compose/Print/Post Invoices (cisli2200m000) session to Financials. Invoice Transferred to Central Invoicing If this check box is selected, the invoice is transferred with the Transfer Project Data to Central Invoicing (tppin4200m000) session. Invoice Document LN enters the code of the financial company to which the invoice is posted. Usually this is the company linked to the project. Invoice Document LN enters the procedure type for the transaction. Central Invoicing identifies an invoice by this field. Invoice Document LN enters a sequence number for the invoice. Central Invoicing identifies an invoice by this field. Sales Type The default sales type. You can change the value or leave this field empty. Related topics Capital Goods Adjustment Process to Select Sales Type for Extensions Ship-from Address The address of the ship-from business partner. Address Code The code that identifies the address linked to the extension. Miscellaneous Classification Employee Responsible The code that identifies the responsibility. Employee Responsible The code that identifies the responsible employee. Geographical Area The code that identifies the geographical area. Category The code that uniquely identifies the category. Business Sector The code that identifies the business sector. Phase The code that uniquely identifies phase. Job Sheets Number of Job Sheets Printed The number of job sheets printed. Interim Results Revenue Interim Results Revenue Recognition Select the method for revenue recognition. To recognize revenue, you can use one of the following methods: Completed Project Method (RR) Percentage Complete Method Earned Revenue Factor Method Actual Revenue Method Reimbursement Contract Method Milestone Method (only for projects controlled by Activity) Revenue Recognition Limit The limit on the revenue to be recognized. A maximum percentage is defined on the project and extension level. The default limit is set to 100%. Note The value can be changed. The revenue recognition limit is valid for all RR methods except the Completed Project method. The percentage times the contract amount gives the maximum revenue that can be recognized (until the completion of the project). This percentage is ignored when the project is complete and the final revenue (and COGS) is posted. Percentage Completed The percentage of completion of the project. You must multiply this percentage with the contract amount to calculate the revenue to be recognized. Note The percentage of completion has to be entered manually, since the Estimate at Completion (EAC) is not defined for an extension. This field is enabled only when the Revenue Recognition Method field is set to Percentage Completed. Earned Revenue Factor Specify the earned revenue factor. You must multiply this factor with the the cost to calculate the revenue to be recognized. Note You can manually enter the earned revenue factor or click Calculate ERF to get the calculated value. LN calculates the factor using the following formula:
    ERF = project contract amount / total budgeted costs
To calculate ERF, the project status must be Active, because the total budgeted cost is known only for active projects. This field is enabled only when the Revenue Recognition Method field is set to Earned Revenue Factor. Cost Interim Results Costs of Goods Sold Select the method to calculate the cost of goods sold (COGS). To calculate the cost of goods sold, you can use one of the following methods: Completed Project Method (COGS) Profit Percentage method Reimbursement Contract Method Profit Percentage Specify the profit percentage. The COGS is calculated on the basis of this percentage and the revenue recognized. Note You can manually enter the percentage or click Calculate Profit Percentage to get the calculated value. LN calculates the percentage using the following formula:
    profit percentage = budget / contract amount
This field is enabled only when the Costs of Goods Sold Method field is set to Profit Percentage. Print Extensions Starts the Print Extensions (tpptc0410m000) session prints extensions for the selected project. Calculate ERF Calculates the earned revenue factor using the following formula:
    ERF = project contract amount / total budgeted costs
To calculate ERF, the project status has to be Active, because the total budgeted cost is known only for active projects. This button is enabled only when the Revenue Recognition Method field is set to Earned Revenue Factor. Calculate Profit Percentage Calculates the profit percentage using the following formula:
    profit percentage = budget / contract amount
This button is enabled only if the Costs of Goods Sold Method field is set to Profit Percentage. |