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1. Choose Cards > Service Management > Service Manager.
2. Select a customer and choose the Contract indicator.
3. Select a contract and choose Revenue/Cost. The Revenue/Costs window opens.
   • Contract Revenue: This
     This column shows the contract amount and percent distribution among cost categories based on the values in the Contract Amount Breakdown window.
   • Contract Costs Actual to Date: Shows
     Shows all costs for the life of the contract.
   • Contract Costs Current Year: Shows
     Shows the current year's costs.
   • Estimate, Hours: These
     These columns contain your cost estimates for each cost category and your cost and hour estimates for each labor subcategory.
   • Forecast, Hours: When
     When the contract is created, forecast costs equal estimate costs. Actual costs are later accumulated in this column, thereby measuring the accuracy of your estimates. You need values in the forecast column to calculate the contract earned amount and to close a contract.
   • Total: The
     The first Total field has an expansion button that opens the Contract Amount Breakdown window where you can divide the total contract amount among the cost categories.
   • Hours: Contains
     Contains the contract's hours to date and for the current year.

   • Calculated Contract Earned:
     Based on the following equation:  [Total contract recognized costs / total forecast costs] x contract amount = revenue recognized When using revenue schedule, this field is updated based on the contract's billing schedule as the revenue recognition process is completed.

   • Calculated Gross Profit: The
     The Calculated Contract Earned minus the Total Cost.

   • Revenue Recognized:
     Calculated based on the following equation when using percentage-of-completion: [Total contract recognized costs / total forecast costs] x contract amount = revenue recognized When using revenue schedule, this field is updated based on the contract's billing schedule as the revenue recognition process is completed.

   • Billed: Total
     Total amount of invoices created for the contract.
4. Choose the Costs Life to Date button to open Contract Costs Life to Date window, which displays total costs for each cost category for the life of the contract.

5. If you are using the percentage-of-completion revenue recognition method, choose the Period Summary button to view the posted transactions to date. Double-click a row to view transaction detail. 

   Note
   If you are using the manual method of revenue recognition, the Period Summary button is not available.

6. If you are using the revenue schedule method of revenue recognition, choose the Revenue Entered button to open the Revenue Schedule window. Revenue amounts are listed along with the Date, Year, and Period in which they were posted. If the revenue amount has not yet been recognized, 0/0/00 appears in the Posted Date column. 

   Note
   If you are using the manual method of revenue recognition, the Revenue Entered button is not available.

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Reviewing the contract spending plan

If you created a contract spending plan with estimate costs distributed based on how you expect actual costs to be incurred throughout the life of the contract, you can use the Maintenance Contract Spending Plan report to review estimate costs, actual costs, billed amounts, and recognized revenue by month. This allows you to compare estimates to actuals and determine contract profitability at any point in time.

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