Completion Management and Revenue Recognition

Completion Management, is a powerful tool used to keep your projects on track. This feature allows you to easily monitor project progress against your planned schedule. By knowing exactly how much of the project has been completed, you can determine if everything is on track or if adjustments are needed.

Key Benefits:

• Efficient Resource Allocation: Allocate your resources more effectively by understanding exactly where your project stands.

• Identify Bottlenecks Early: Identify any issues that might delay your project and address them proactively.

• Accurate Forecasting: Improve your forecasting accuracy with up-to-date completion percentages.

• Enhanced Transparency: Keep all stakeholders informed with clear visibility into project status.

You can manage this feature manually by updating progress by contract line or automatically by tracking completed tasks. Adding percentages directly in the grid is straightforward and efficient.

Important: Completion Management is only accessible for project managers with access to financials, admins and controllers.

Let's get started!

Below, is an example of a consultancy project, consisting of three contract lines:

Each contract line is a fixed fee with an Amount and Budget:

The total project value is $ 52,000:

The Intake Assessment contract line already has a Used value based on hours booked against the project:

On the far right-hand side, you will see a Key Performance Indicators panel:

If we zoom in to the Key Performance Indicators panel, the Actuals indicator is based on the value of hours booked in the contract's Used column ($ 9,500):

As additional hours are booked against the project's contract lines, the further the Actuals indicator increases.

Important: The above example is based on a fixed fee project but Completion Management also applies to projects using T&M and Retainer contract lines.

How to manage your project's completion?

Task-based projects can be a key factor determining the completion of your project. You may have tasks marked as completed because team members have worked on them, but if the completion is determined by the customer's sign-off and the customer is not satisfied, then the tasks will require some rework.

In the following project's plan, three tasks are marked as completed for the Intake Assessment task list that is mapped to the project's contract line of the same name. However, these tasks require some rework, resulting in the task list's completion being for example, only 50%.

Click the Contract tab to return to the project's contract.

Next, click the Contract sub-menu and select Completion Management:

The Completion Management view of the contract will appear:

In the % Complete column, the 50% completion of the tasks for the Intake Assessment contract line can be entered directly in the contract line:

Notice, that 50% completion for this contract line, also displays the Progress bar as 50%. This view provides the contract line's assessment of completion:

Because 50% of the Intake Assessment contract line is complete, it also means that 50% of the fixed fee amount ($ 12K) represents what is to be invoiced (WIP = Work in Progress). The WIP is calculated using the below formula:

WIP = % completed x Amount – Invoiced
6K = 50% x 12K - 0

What does this mean for the project's overall completion? Let's now turn back to the Key Performance Indicators panel:

For the Completion indicator, you will see that 12% of the total project is completed. That's 50% completion on the Intake assessment contract line but only 12% of the overall project.

On the Actuals indicator, the following information is presented:

A summary of all your project's Completion Management can be found in the Project's overview. Click on the Completion Management tab:

How to recognize your project's revenue?

In addition to Completion Management, PSOhub has a revenue recognition feature to calculate what you should have as recognised project revenue.

Click the Completion Management menu, and select Revenue Recognition:

The below revenue information appears. Based on the 50% completion of the Intake Assessment contract line, the Recognized contract value is 6K. In the Used column, the total hours spent based on the roles' selling rates is shown.

As shown in the Key Performance Indicators panel, more hours were spent than budgeted:

With more hours spent than budgeted, the project has not faired well financially. Yes, there is a recognized revenue of 6K but with more time spent than budgeted, the project is already at a loss, hence, the negative value in the Result column of $-5,600. This is calculated using the formula:
​

Result/Profit = Recognized - Used
-5,600 = 6K - 11.6K

A summary of all your project's revenue recognition can be found in the Project's overview. Click on the Revenue Recognition tab:

Webinars

The Benefits of Completion Management

Workshop on Completion Management