Calculation Method and Revenue Posting

Project Cost center = A

Contract Value = 100,000

Hours Forecast = 10,000

Total Cost Posted = 7,000

Cost for employee ABS which belongs to Cost Center A = 3000

Cost for employee XYZ which belongs to Cost Center B = 4000

% cost complete = 70% (7000/10,000)

Revenue to recognize = 70,000

Note: In this method, the sales price / amount that is displayed against…