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WIP Adjustments - Margin % Accounting

Written by Denisa Arjoca
Updated over a month ago

Overview

This feature allows setting a conservative margin percentage for accounting purposes, separate from project manager forecasts, until the contract is near completion.

This feature only applies to online WIP Adjustments (not offline Contract Sets).

Configuration

Enable Revenue Recognition Method

  1. Navigate to Revenue Recognition Methods.

  2. Select a percentage-based method.

    This feature only works with percentage-based revenue recognition methods; it does NOT work with the Cost Multiplier method.

  3. Tick Allow Override of the EMAC Percentage.

  4. Save the method.

Configure Contract

  1. Open the contract record.

  2. Ensure the contract uses a Revenue Recognition method with override enabled.

  3. Tick Allow Override.

  4. Enter your conservative margin percentage in the Financial Margin % field.

  5. Save the contract record.

Calculation Process

Coins ERP+ uses your entered margin percent with Estimated Revenue at Completion (ERAC) to calculate what ECAC should be to achieve that margin. Then, the system overrides the ECAC in WIP Adjustments and recalculates all dependent values.

Turning It Off

When the contract reaches your confidence threshold (e.g., 80% complete):

  1. Open the contract record.

  2. Untick Allow Override.

  3. Save the contract record.

  4. The next WIP adjustment calculation will use the normal calculations.

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