Time and Materials Contracts with Upset Limits

Learn how to calculate accrued revenue for a project with a time and materials contract with upset limits.

You can use the same revenue methods that you use for projects based on a time and materials contract without upset limits:

• Run revenue generation with Method B specified for the project. Usually you do this at the end of the project's billing cycle.
• Run revenue generation with Method W specified for the project.
• Create a user-defined method, specify it for the project, and run revenue generation for the project.

As an alternative, you can use one of these procedures to calculate accrued revenue:

• Method M (labor costs times a multiplier).
• Method P (labor costs times a percentage of completion).
• A user-defined method that refers to specific contract terms, such as the contract limit amount. Use the Subject to Max operator to specify the upset limit.