Page 8 - Unanet GovCon: Managing Project Execution and Control - Participant Guide (ILT)

LESSON 1: PROJECT SETTINGS BY BILLING TYPE

Learning Objectives
• Describe the recommended project settings for each billing type
• Confirm that established system settings will appropriately support a selected
Project or Task billing type

Introduction
Once an Administrator has configured the Setup and Properties screens to support
project management in their Unanet instance, it is up to Project Managers to create and
modify Projects based on contractual obligations. In Unanet, revenue is calculated
according to projects’ billing type, while profit is calculated by dividing the total revenue
minus burdened costs by the revenue.

Calculating Revenue by Billing Types
Revenue on a project is calculated by the billing type of the project/task. For
incrementally funded efforts, there is a setting on the project/task that can limit the
calculated revenue by the Funded Value field on the project/task.

Time & Material (TM) revenue for labor is calculated by the bill rate multiplied by the
hours. TM revenue for expenses is calculated by the direct cost of the expense
multiplied by any associated markup percentage. Cost Plus (CP) revenue is a
calculation of the direct costs, indirect costs, and any associated fees for both labor and
expenses. Fixed Price (FP) revenue is calculated strictly by the configuration of the
billing schedule on the project.

Calculating Profitability by Billing Types

In general terms, profit on a project is calculated by dividing the revenue minus
burdened costs by the total revenue.

LESSON 1: PROJECT SETTINGS BY BILLING TYPE
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