Fee(s)

The fields in this section of the project profile Accounting tab are only visible with the Project Tracking or Project Portfolio licenses.  

Using this section, you can optionally enter zero to many fees associated with the project.  Multiple fee types are sometimes required on CP projects where the company has negotiated fees using different percentages depending on the type of cost incurred.  An example would be where the government awards a contract where the company receives a fee of 10% on labor and labor indirects and 3% on ODC and related ODC indirects .

Further, when a company has a project contracted with the government on a Cost Plus Fixed Fee basis, the amount negotiated for the fixed fee may ultimately (barring any contract changes) be the amount paid for the fixed fee regardless of the “cost” component of the project.  

The fields in this section will only apply to CP projects (ie they do not apply to T&M or FP projects).

The fields in this section include:

• Calculation Method - The values available in this drop down will include all the Fee Calculation Methods defined by an Administrator on the Admin >> Setup >> Fee Calculation Method screen.  

• Factor Type - This field will be used to determine if the Fee Factor should be considered a numeric factor or a percentage.

• Factor - This is the factoring amount applied to the fee basis, which will be used in various Project Accounting report calculations.  

• • Cannot equal zero (but can be negative).  

  • Allowed values; min -999.99, max +999.99.

  • The value entered will be handled as follows depending on the Factor Type.  For example, if you entered a value of 10:

  • • Factor Type = Number -- the amounts would be multiplied by a factor of 10

    • Factor Type = Percent -- the amounts would be multiplied by a factor of .10
        

• Fixed Fee Amount - If specified, the cumulative fee will be limited to this amount.  This amount can be positive or negative.  

  
When supplying a Fixed Fee Amount, the system will continue to produce all of the regular transactions for the fee amounts but will also generate additional transactions (which we refer to as Fixed Fee Cap Adjustments) that will reflect a reduction in the amounts ensuring the totals do not exceed the Fixed Fee Amount.  Each time the posting process is run for a project, the amounts and these options are checked and the system will regenerate appropriate transactions (either adding more or reversing out more depending on the current values).  This will accommodate changing the values over time.

Note that when a project is marked as Completed, if the total value of the Fixed Fee Amount has yet to be earned, the system will generate the necessary posting entries to allow for the balance of the Fixed Fee Amount to be earned.

These fields are optional and can be updated or removed.  These fields are used dynamically to calculate values on various Project Accounting reports.