When we confirm activities and see it in cns41 report we can see that the POC is aggregated at the Network,WBS and porject level. How does the system calculate this.. i.e on what factors and criteria?
Result analysis determines the costs & revenues belong to the period, along with the Work in progress (WIP) or Reserves.
Result analysis calculation is based on the planned / actual Cost & Revenue.
POC (Percentage of Completion) determines by the valuation method you opt …
The formula for POC :
POC = R (a) / R (P) Revenue Proportionate
POC = C (a) / C (p) Cost Proportionate
Result Analysis Determines:
- Calculated Costs C(c) = POC X C (p) Same for Revenue
- WIP (If C(a) >C (c) ) WIP = C(z)= C(a) - C(p)
- Reserves for unrealized costs (if C(a) < C(c) )
C( r ) = C (c ) – C(a)
- Revenue Surplus (if R (a) > R(c) )
R (r) = R(a) –R(c)
Revenue Proportionate RA:
In some project you have R(p) =3000$
C (p) = 2000$
R (a) = 1200$
C (a) = 1000$
Then POC = 1200 /3000 = 40 %
C(c) = POC X C(p) = 40 % X 2000 = 800$
WIP = C(z) = C(a) –C(c) = 1000-800 =200$