Actuals impact in a time and materials engagement
Applies to: Project Operations for resource/non-stocked based scenarios, Lite deployment - deal to proforma invoicing
The following table lists the actuals of different transaction types that are created at various events in a time and materials engagement.
| Event | Cost actual | Unbilled sales actual | Billed sales actual | Example |
|---|---|---|---|---|
| Time is created. | Not applicable | Not applicable | Not applicable | Bob Kozack, from the Fabrikam US organizational unit that has a cost rate of 100 US dollars (USD 100) per hour, is working on a project that is named "Arm Installation at Adatum." For this project, Bob's contracted bill rate is USD 200 per hour. Here is a sample time entry from Bob Kozak: Bob Kozack, 8 hours |
| Time is submitted. | Not applicable | Not applicable | Not applicable | A cost journal line and Unbilled sales journals are created for the time entry. The default price and cost rate are entered in the journal entry. |
| The time entry is recalled before it's approved. | Not applicable | Not applicable | Not applicable | |
| Time is approved: Submitted hours equal billable hours. | A cost actual is created. | An unbilled sales actual is created. | Not applicable | New actuals that are created:
|
| Time is approved: Billable hours are reduced below submitted hours. | A cost actual is created. | Two unbilled sales actuals are created:
|
Not applicable | New actuals that are created:
|
| Time is approved: Billable hours are increased above submitted hours. | A cost actual is created. | An unbilled sales actual is created. | Not applicable | New actuals that are created:
|
| Time approval is canceled. | The adjustment status of the original cost actual is updated to Adjusted. A reversal cost actual is created that has an adjustment status of Unadjustable. |
The adjustment status of the original unbilled sales actual is updated to Adjusted. A reversal unbilled sales actual is created that has an adjustment status of Unadjustable. |
Not applicable | Existing actuals that are updated:
New actuals that are created to reverse the previous financial impact:
|
| The time entry is recalled after it's approved. | The adjustment status of the original cost actual is updated to Adjusted. A reversal cost actual is created that has an adjustment status of Unadjustable. |
The adjustment status of the original unbilled sales actual is updated to Adjusted. A reversal unbilled sales actual is created that has an adjustment status of Unadjustable. |
Not applicable | Existing actuals that are updated:
New actuals that are created to reverse the previous financial impact:
|
| The contract is confirmed. | The adjustment status of the old cost actuals is updated to Adjusted. Reversal cost actuals are created that have an adjustment status of Unadjustable. New cost actuals are created after the contractual rules are reevaluated. |
The adjustment status of the old unbilled sales actuals is updated to Adjusted. Reversal unbilled sales actuals are created that have an adjustment status of Unadjustable. New unbilled sales actuals are created after the contractual rules are reevaluated. |
Not applicable | Existing actuals that are updated:
New actuals that are created to reverse the previous financial impact:
New actuals that are created for the reevaluated financial impact:
|
| An invoice is created. | Not applicable | Not applicable | Not applicable | |
| The invoice is confirmed. There is no change to the quantity on the invoice line detail from the quantity on the unbilled sales actual. | Not applicable | The invoice status of the old unbilled sales actual is updated. Reversal unbilled sales actuals are created that have an adjustment status of Unadjustable. |
A billed sales actual is created. | Existing actual that remains unchanged:
Existing actual that is updated:
New actual that is created to record the billed sales values:
|
| The invoice is confirmed after the quantity on the invoice line detail is decreased from the quantity on the unbilled sales actual. | Not applicable | The adjustment status of the original unbilled sales actuals is updated to Adjusted. Reversal unbilled sales actuals are created for the original unbilled sales actuals. They have an adjustment status of Unadjustable. Two new unbilled sales actuals are created:
Reversal unbilled sales actuals are created for the two new unbilled sales actuals. |
Two billed sales actuals are created:
|
Existing actual that remains unchanged:
Existing actual that is updated:
New actual that is created to reverse the previous financial WIP:
New actuals that are created to record the updated sales WIP:
New actuals that are created to reverse the updated sales WIP:
New actuals that are created to record the billed sales values:
|
| The invoice is confirmed after the quantity on the invoice line detail is increased from the quantity on the unbilled sales actual. | Not applicable | The adjustment status of the original unbilled sales actuals is updated to Adjusted. Reversal unbilled sales actuals are created for the original unbilled sales actuals. They have an adjustment status of Unadjustable. New unbilled sales actuals are created for the new quantity. Reversal unbilled sales actuals are created for the new unbilled sales actuals. |
Billed sales actuals are created for the new quantity. | Existing actual that remains unchanged:
Existing actual that is updated:
New actual that is created to reverse the previous financial WIP:
New actual that is created to record the updated sales WIP:
New actual that is created to reverse the updated sales WIP:
New actual that is created to record the billed sales values:
|
| The invoice is corrected to decrease the chargeable quantity or price. | Not applicable | Two unbilled sales actuals are created:
Reversal unbilled sales actuals are created for the two new unbilled sales actuals. |
Reversal billed sales actuals are created. New billed sales actuals are created for the new quantity. |
Existing actuals that remain unchanged:
Existing actual that is updated:
New actual that is created to reverse the previous billed sales values:
New actuals that are created to record the corrected sales WIP:
New actual that is created to reverse the corrected sales WIP:
New actual that is created to record the corrected billed sales values:
|
| The invoice is corrected to increase the chargeable quantity or price. | Not applicable | New unbilled sales actuals are created for new quantity. Reversal unbilled sales actuals are created for the new unbilled sales actuals. |
Reversal billed sales actuals are created. New billed sales actuals are created for the new quantity. |
Existing actuals that remain unchanged:
Existing actual that is updated:
New actual that is created to reverse the previous billed sales values:
New actual that is created to record the corrected sales WIP:
New actual that is created to reverse the corrected sales WIP:
New actual that is created to record the corrected billed sales values:
|