Revenue Generation and Multiple Companies
When you track multiple companies in DPS, you set up Revenue Generation separately for each of the companies in your enterprise. When you run Revenue Generation, it processes the revenue calculations for only one company at a time.
Run Revenue Generation for one company, then switch companies and run Revenue Generation for another company.
To change the active company in the browser application, click the name of the current company on the toolbar and select a company from the drop-down list. To change the active company in the desktop application, select and then select a company on the Company Selection dialog box.
When you track multiple companies and use Organization Reporting, you can have projects that have phases or tasks (lower work breakdown structure levels) belonging to a different company in your enterprise. If you use revenue groups, you can have subprojects in revenue groups that belong to different companies.
Revenue Generation with Phases, Tasks, or Revenue Group Subprojects in Different Companies
For projects whose phases or tasks belong to different companies or for revenue groups whose subprojects belong to different companies, you must run Revenue Generation for these projects in each of the companies to which a project's phases or tasks belong. You can run Revenue Generation for these companies in any order.
For example, if Project 1 has phases that belong to Company A and phases that belong to Company B, you must run Revenue Generation for Project 1 in both Company A and Company B.
When you run Revenue Generation for Project 1 in Company A:
- Job-to-date revenue is calculated for each phase that belongs to Company A; DPS does not calculate job-to-date revenue for the phases that belong to Company B.
- The total job-to-date revenue for Project 1 is calculated as the sum of the new job-to-date revenue amounts that were calculated for Company A phases and the job-to-date amount that was calculated for Company B phases the last time that Revenue Generation was run for Company B.
When you run Revenue Generation for Project 1 in Company B:
- Job-to-date revenue is calculated for each phase that belongs to Company B; DPS does not calculate job-to-date revenue for the phases that belong to Company A.
- The total job-to-date revenue for Project 1 is calculated as the sum of the new job-to-date revenue amounts that were calculated for Company B phases and the job-to-date amount that was calculated the last time that Revenue Generation was run for Company A.
The end result after you run Revenue Generation for both companies is a job-to-date revenue amount for Project 1 that includes revenue calculated for the phases that belong to Company A and Company B.
For example, project 1 has the following phases that belong to different companies:
- Company A: Project 1/Phase A. The job-to-date revenue posted previously was $100.
- Company B: Project 1/Phase B. The job-to-date revenue posted previously was $50.
You run Revenue Generation for Project 1 in each company as follows:
| Company A Perspective | Company B Perspective | Project 1 Running Total (Sum of Phases) | |
|---|---|---|---|
|
Step 1: Run Revenue Generation in Company A for Project 1. |
Job-to-date revenue is calculated as $110 now . ($10 is recognized for Phase A since the last time Revenue Generation was run.) |
No job-to-date revenue is calculated. (The previously posted job-to-date revenue for Phase B is $50.) |
$160 ($160 = $110 from Phase A and $50 from Phase B) |
|
Step 2: Run Revenue Generation in Company B for Project 1. |
No job-to-date revenue is calculated. (The previously posted job-to-date revenue for Phase A is $110.) |
Job-to-date revenue is calculated as $130 now. ($80 is recognized for Phase B since the last time Revenue Generation was run.) |
$240 ($240 = $110 from Phase A and $130 from Phase B) After you run Revenue Generation for the project in both companies, the end result is JTD revenue of $240 for Project 1. |
Overall Revenue Upset Limits with Phases or Tasks in Different Companies
To set a limit on the job-to-date revenue that is recognized for a project, use overall revenue upset limits as part of the Revenue Generation process.
The following is an example of how Revenue Generation calculates job-to-date revenue and any adjustments when a project with upset limits has phases or tasks that belong to different companies. For example, project 1 has the following phases that belong to different companies:
- Company A: Project 1/Phase A. Job-to-date revenue posted previously was $100.
- Company B: Project 1/Phase B. Job-to-date revenue posted previously was $50.
Project 1 has an overall revenue upset limit of $200.
You run Revenue Generation for Project 1 in each company as follows:
|
Company A Perspective |
Company B Perspective |
Project 1 Running Total (Sum of Phases) |
|
|---|---|---|---|
|
Step 1: Run Revenue Generation in Company A for Project 1. |
Job-to-date revenue is calculated as $110 now. ($10 is recognized for Phase A since the last time Revenue Generation was run.) |
No job-to-date revenue is calculated. (The previously posted job-to-date revenue for Phase B is $50.) |
$160 ($160 = $110 from Phase A and $50 from Phase B) |
|
Step 2: Run Revenue Generation in Company B for Project 1. |
No job-to-date revenue is calculated. (The previously posted job-to-date revenue for Phase A is $110). |
Job-to-date revenue is calculated as $130 now. ($80 is recognized for Phase B since the last time Revenue Generation was run.) |
$240 ($240 = $110 from Phase A and $130 from Phase B) Because $240 is greater than the $200 upset limit, an adjustment of negative $40 is made to an adjustment phase for Project 1. After you run Revenue Generation for the project in both companies, the end result is job-to-date revenue of $200 for Project 1. |
Overall Revenue Calculation for a Project
For individual projects that are not part of a revenue group, you can use the Overall Revenue Calculation feature to perform an additional calculation of overall revenue at the project level, similar to the overall revenue calculation and adjustment that is performed for revenue groups.
For example, Project 1 has the following phases that belong to different companies:
- Company A: Project 1/Phase A. The job-to-date revenue posted previously was $100.
- Company B: Project 1/Phase B. The job-to-date revenue posted previously was $50.
You run Revenue Generation for Project 1 in each company as follows:
|
Company A Perspective |
Company B Perspective |
Project 1 Running Total (Sum of Phases) |
|
|---|---|---|---|
|
Step 1: Run Revenue Generation in Company A for Project 1. |
Job-to-date revenue is calculated as $110 now. ($10 is recognized for Phase A since the last time Revenue Generation was run.) |
No job-to-date revenue is calculated. (The previously posted job-to-date revenue for Phase B is $50.) |
$160 ($160 = $110 from Phase A and $50 from Phase B) The overall job-to-date revenue for Project 1, which is calculated with the overall revenue method entered for Project 1, is $190. For the sum of the phase's revenue to match the overall project's revenue, an adjustment for $30 ($190-$160) is made to an adjustment phase. |
|
Step 2: Run Revenue Generation in Company B for Project 1. |
No job-to-date revenue is calculated. (The previously posted job-to-date revenue for Phase A is $110.) |
Job-to-date revenue is calculated as $130 now. ($80 is recognized for Phase B since the last time Revenue Generation was run.) |
$240 ($240 = $110 from Phase A and $130 from Phase B) The overall job-to-date revenue for Project 1, which is calculated with the revenue method entered for the revenue group, is $190. For the sum of the phase's revenue to match the overall project's revenue, an adjustment for negative $50 ($190-$240) is made to an adjustment phase. After you run Revenue Generation for the project in both companies, the end result is job-to-date revenue of $190. |
Revenue Groups
For projects that are part of a group or contract, you can use revenue groups to recognize revenue at the overall group (contract) level, rather than as the sum of its lowest work breakdown structure parts.
For example, you have a Revenue Group 1 that consists of:
- Company A: Project 1. The job-to-date revenue posted previously for Project 1 was $100.
- Company B: Project 2. The job-to-date revenue posted previously for Project 2 was $50.
You run Revenue Generation for Project 1 in each company as follows:
|
Company A Perspective |
Company B Perspective |
Group 1 Running Total (Sum of Subprojects) |
|
|---|---|---|---|
|
Step 1: Run Revenue Generation in Company A for Project 1. |
Job-to-date revenue is calculated as $110 now. ($10 is recognized for Project 1 since the last time Revenue Generation was run.) |
No job-to-date revenue is calculated. (The previously posted job-to-date revenue for Project 2 is $50.) |
$160 ($160 = $110 from Project 1 and $50 from Project 2) The overall job-to-date revenue for Revenue Group 1, which is calculated with the revenue method entered for the revenue group, is $190. For the sum of the subproject's revenue to match the overall group revenue, an adjustment for $30 ($190-$160) is made to an adjustment phase. |
|
Step 2: Run Revenue Generation in Company B for Project 2. |
No job-to-date revenue is calculated. (The previously posted job-to-date revenue for Project 1 is $110.) |
Job-to-date revenue is calculated as $130 now. ($80 is recognized for Project 2 since the last time Revenue Generation was run.) |
$240 ($240 = $110 from Project 1 and $130 from Project 2) The overall job-to-date revenue for Revenue Group 1, which is calculated with the revenue method entered for the revenue group, is $190. For the sum of the subproject's revenue match the overall group revenue, an adjustment for negative $50 ($190-$240) is made to an adjustment phase. After you run Revenue Generation for the project in both companies, the end result is job-to-date revenue of $190. |
Revenue Categories
If you have multiple companies and you use revenue categories, you set up revenue categories separately for each company for which you want to use categories. However, the revenue category labels and the user-defined revenue formulas that you set up for revenue categories are applied to all companies in your enterprise.