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<ManualTopic ID="/baanerp/ti/onlinemanual/000371" xml:lang="en">
   <Header>
      <Title>Procedure for interim revenue recognition in Project Control
	  (PCS)</Title>
      <Keyword type="header" order="d1e2420523">
         <Level1>Revenue recognition</Level1>
      </Keyword>
      <Keyword type="header" order="d1e2420526">
         <Level1>Procedure for revenue recognition</Level1>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>This topic describes the steps to calculate interim <Link href="/baanerp/tp/glossary/glossary#000327" role="glossary">COGS</Link> and interim revenue for a PCS project.</Paragraph>
   </AimSection>
   <ProcedureSection>
      <Steps>
         <Step>
            <StepTitle>
               <GUIRef href="/baanerp/ti/pcs/tipcs2130m000" role="session">Project Details (tipcs2130m000)</GUIRef>
            </StepTitle>
            <Paragraph>In the <GUIRef href="/baanerp/ti/pcs/tipcs2130m000" role="session">Project Details (tipcs2130m000)</GUIRef> details session, you must determine in the <Link href="/baanerp/ti/pcs/tipcs2130m000#tipcs030.pocm" role="formfield">Percentage of Completion Calculation Method</Link> field which method is used to calculate the
		  Percentage of Completion (POC) of the PCS project. The selected POC is used to
		  calculate the interim COGS and revenue.</Paragraph>
            <Paragraph>In the <GUIRef href="/baanerp/ti/pcs/tipcs0100m000" role="session">Project Control Parameters (tipcs0100m000)</GUIRef> session, you can also select a POC method.
		  This method is used as a default value in the project details of PCS projects
		  that are generated from a sales order line by using the <Link href="/baanerp/td/sls/tdsls4244m000" role="session">Generate (Project PCS) Structure for Sales Orders (tdsls4244m000)</Link> session.</Paragraph>
         </Step>
         <Step>
            <StepTitle>
               <GUIRef href="/baanerp/ti/pcs/tipcs3290m000" role="session">Calculate Interim COGS and Revenues by Project (tipcs3290m000)</GUIRef>
            </StepTitle>
            <Paragraph>To actually calculate interim COGS and revenues for one or
		  more PCS projects, you must run the <Link href="/baanerp/ti/pcs/tipcs3290m000" role="session">Calculate Interim COGS and Revenues by Project (tipcs3290m000)</Link> session. ERP Enterprise carries out the following steps:</Paragraph>
            <ProcedureList>
               <ListItem>The actual costs for the PCS project are calculated until
			the <GUIRef href="/baanerp/ti/pcs/tipcs3290m000#rdat" role="manual">Reference Date</GUIRef>, but the actual cost prices are not
			overwritten. <List>
                     <ListItem>If the <GUIRef href="/baanerp/ti/pcs/tipcs3290m000#perf.escc" role="manual">Perform estimated cost calculation</GUIRef> check box is selected, the estimated cost
				price for the PCS project is calculated. The estimated cost price of the PCS
				project is based on the the cost prices of items linked to the project, with
				the project quantity taken into account, the estimated surcharges, and the
				estimated cost price of the activities. Estimated costs for the PCS project
				that were already calculated, are overwritten.</ListItem>
                     <ListItem>If the <GUIRef href="/baanerp/ti/pcs/tipcs3290m000#perf.escc" role="manual">Perform estimated cost calculation</GUIRef> check box is cleared, the estimated project
				costs are not calculated but they are taken from the <GUIRef href="/baanerp/ti/pcs/tipcs3560m000" role="session">Cost Price by Project (tipcs3560m000)</GUIRef> session.</ListItem>
                  </List>
               </ListItem>
               <ListItem>Actual hours are calculated. Project hours can originate
			from the PCS project, the PCS activities, SFC production orders, and service
			orders. If interim revenues and COGS for a specific project are determined for
			the first time, the estimated hours need to be entered manually in the <Link href="/baanerp/ti/pcs/tipcs3190m000" role="session">Interim COGS and Revenues by Project (tipcs3190m000)</Link> session. The reason is that hours for SFC, service, and PCS cannot be
			estimated. Only using the estimated activity hours would be misleading. If you
			calculate interim COGS and revenue in subsequent periods, the number of hours
			is used that you entered manually the first time.</ListItem>
               <ListItem>The estimated and actual COGS/revenues are determined. The
			sum of the most recent estimated revenues for sales, service, and warehousing
			is calculated. Furthermore, the sum of actual revenues is determined, and the
			sum of actual COGS for the PCS project, and the related sales orders, service
			orders, and warehousing orders.</ListItem>
               <ListItem>The percentage of completion (POC) for the PCS project is
			calculated based on the method you chose in the <Link href="/baanerp/ti/pcs/tipcs0100m000#tipcs000.pocm" role="formfield">Percentage of Completion Calculation Method</Link> field in the <GUIRef href="/baanerp/ti/pcs/tipcs2130m000" role="session">Project Details (tipcs2130m000)</GUIRef> session. If you selected <Link href="/baanerp/ti/pcs/tipcs3190m000#tipcs390.pocm" role="formfield">POC (manual)</Link> as POC method in the <GUIRef href="/baanerp/ti/pcs/tipcs2130m000" role="session">Project Details (tipcs2130m000)</GUIRef> session, you can indicate in the <GUIRef href="/baanerp/ti/pcs/tipcs2130m000#tipcs030.soco" role="manual">Stage of Completion</GUIRef> field the percentage of the work
			on the PCS project that is completed.</ListItem>
               <ListItem>The <Link href="/baanerp/ti/pcs/tipcs3190m000#tipcs390.intc" role="formfield">Interim</Link> and <Link href="/baanerp/ti/pcs/tipcs3190m000#tipcs390.intr" role="formfield">Interim</Link> are calculated.</ListItem>
            </ProcedureList>
         </Step>
         <Step>
            <StepTitle>
               <GUIRef href="/baanerp/ti/pcs/tipcs3190m000" role="session">Interim COGS and Revenues by Project (tipcs3190m000)</GUIRef>
            </StepTitle>
            <Paragraph>You can view the calculated COGS and revenue in the <Link href="/baanerp/ti/pcs/tipcs3190m000" role="session">Interim COGS and Revenues by Project (tipcs3190m000)</Link> session. Some of the calculated amounts and the POC percentage, you can adjust
		  manually. For every PCS project one or more interim COGS/revenues can be
		  listed.</Paragraph>
            <Paragraph>From the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu, or with the buttons, you can handle the
		  rest of the interim COGS and revenue procedure. This described in the next
		  steps of the procedure.</Paragraph>
         </Step>
         <Step>
            <StepTitle>
               <GUIRef href="/baanerp/ti/pcs/tipcs3191m000" role="session">COGS by Cost Component (tipcs3191m000)</GUIRef>
            </StepTitle>
            <Paragraph>If for a PCS project the <Link href="/baanerp/ti/pcs/tipcs2130m000#tipcs030.intc" role="formfield">Post Interim COGS and Revenues by Cost Component</Link> check box in the <GUIRef href="/baanerp/ti/pcs/tipcs2130m000" role="session">Project Details (tipcs2130m000)</GUIRef> details session is selected, you can view in the <Link href="/baanerp/ti/pcs/tipcs3191m000" role="session">COGS by Cost Component (tipcs3191m000)</Link> session how the COGS is distributed
		  over cost components. You must start this session from the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu of the <GUIRef href="/baanerp/ti/pcs/tipcs3190m000" role="session">Interim COGS and Revenues by Project (tipcs3190m000)</GUIRef> session, or by clicking <GUIRef href="/baanerp/ti/pcs/tipcs3190m000#results.by.cost.component" role="command"
                       Update="No">Cost Components</GUIRef>.</Paragraph>
            <Paragraph>If the interim COGS and revenue are not yet confirmed and/or
		  posted, you can still modify the estimated costs and the confirmed interim
		  COGS.</Paragraph>
         </Step>
         <Step>
            <StepTitle>Confirm interim COGS and revenue</StepTitle>
            <Paragraph>After viewing and adjusting data in the <GUIRef href="/baanerp/ti/pcs/tipcs3190m000" role="session">Interim COGS and Revenues by Project (tipcs3190m000)</GUIRef> session and/or the <GUIRef href="/baanerp/ti/pcs/tipcs3191m000" role="session">COGS by Cost Component (tipcs3191m000)</GUIRef> session, you can confirm the data by
		  clicking <Link href="/baanerp/ti/pcs/tipcs3190m000#toggle.confirm" role="command">(de-) Confirm</Link> in the <GUIRef href="/baanerp/ti/pcs/tipcs3190m000" role="session">Interim COGS and Revenues by Project (tipcs3190m000)</GUIRef> session. If after confirming, you
		  still want to make changes, you can click <Link href="/baanerp/ti/pcs/tipcs3190m000#toggle.confirm" role="command">(de-) Confirm</Link> again to deconfirm the data.</Paragraph>
            <Paragraph>To confirm interim COGS and revenue, you can also start the <Link href="/baanerp/ti/pcs/tipcs3291m000" role="session">Confirm and Post Interim COGS and Revenues by Project (tipcs3291m000)</Link> session, select the <Link href="/baanerp/ti/pcs/tipcs3291m000#confirm" role="formfield">Confirm Interim COGS and Revenues</Link> check box, and run the
		  session. Confirm and Post Interim COGS and Revenues by Project
		  (tipcs3291m000)</Paragraph>
         </Step>
         <Step>
            <StepTitle>Post interim COGS and revenue</StepTitle>
            <Paragraph>After confirming, the interim COGS and revenue must be
		  posted to the <GUIRef href="/baanerp/tf/gld" role="module">General Ledger</GUIRef> module in <GUIRef href="/baanerp/tf" role="package">Financials</GUIRef>. In the <GUIRef href="/baanerp/ti/pcs/tipcs3190m000" role="session">Interim COGS and Revenues by Project (tipcs3190m000)</GUIRef> session, start the <Link href="/baanerp/ti/pcs/tipcs3291m000" role="session">Confirm and Post Interim COGS and Revenues by Project (tipcs3291m000)</Link> session from the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu, or click <GUIRef href="/baanerp/ti/pcs/tipcs3190m000#tipcs3291m000" role="command" Update="No">Confirm &amp; Post</GUIRef>. Select the <Link href="/baanerp/ti/pcs/tipcs3291m000#post" role="formfield">Post Interim COGS and Revenues</Link> check box, and run the
		  session.</Paragraph>
         </Step>
      </Steps>
   </ProcedureSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/ti/onlinemanual/000370" role="manual">Overview of interim revenue recognition in Project Control (PCS)</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>