Projects and Construction: Automated Revenue Percentage Calculation for Progress Billing

If you use progress billing, you know how tedious it is to estimate and enter completion percentages in multiple revenue budget lines. Manually reviewing revenue-related expenses takes time and may lead to inconsistent billing amounts and delayed invoices.

MYOB Acumatica 2026.1.1 automatically calculates the recommended completion percentages for revenue budget lines by using predefined rules. You can select the rule the system uses for these calculations: actual costs versus the revised budgeted amount, actual costs versus the projected costs at completion or actual quantity versus the revised budgeted quantity.

You can also create your own rules to match your business workflows.

Reviewing the Revenue Percentage Calculation Rules

To get started, you review the predefined rules on the new Revenue Percentage Calculation Rules (PM206500) form, shown below. You can't delete predefined rules, but you can modify their settings and formulas or add your own rules.

Predefined Rules: You select one of these predefined rules, which determine how the system calculates the recommended revenue completion percentage of the project’s budget lines:

• REVISEDAMT: By comparing the actual amount with the revised budgeted amount.
• REVISEDQTY: By comparing the actual quantity with the revised budgeted quantity.
• PROJCOST: By comparing the actual amount with the projected cost at completion. The system uses the projected costs from the latest released cost projection—dated on or before the current business date—on the Cost Projection by Date (PM305500) form.
  Attention:

  The PROJCOST rule appears on the form if the Construction feature is enabled on the Enable/Disable Features (CS100000) form.

Grouping Logic: In the Group by Task box, you select the type of task to be used for grouping cost budget lines. With Revenue Task (the default option) selected, the system does the following for each revenue task:

1. Finds all cost budget lines with this revenue task
2. Totals actual amounts and budgeted amounts for the cost budget lines with this revenue task
3. Uses the total amount to calculate the completion percentage for the revenue budget lines with this revenue task

If you instead select Project Task in this box, the system does the following for each project task:

1. Finds all cost lines with this project task
2. Totals actual amounts and budgeted amounts for the cost budget lines with this project task
3. Uses the total amount to recommend the completion percentage for the revenue budget lines with this project task

Assigning the Rules

After you've chosen a revenue percentage calculation rule for a project that uses progress billing, you assign it to the project. That is, you select it in the new Revenue Percentage Calculation Rule box on the Summary tab of the Projects (PM301000) form.

For each task of the Revenue or Cost and Revenue type added to the project, the system inserts this rule in the new Revenue Percentage Calculation Rule column on the Tasks tab of the Projects (PM301000) form, as shown below. (For existing project tasks, you must specify the rule manually.) You can override the inserted default rule. Once the rule is assigned to a project task, the system calculates the recommended values for each revenue budget line of a project with this task.

You can specify the default rule in the Revenue Percentage Calculation Rule box on the Summary tab of these forms:

• Project Tasks (PM302000): The rule assigned to a project task is copied to the Tasks tab of the project.
• Common Tasks (PM208030): The rule assigned to a common task is copied to the Tasks tab of the project.
• Project Templates (PM208000): The rule assigned to a project template is inserted by default for the project.
• Project Template Tasks (PM208010): The rule assigned to a project template task is inserted by default for the project tasks.

The rule assigned to a project task affects the calculation of the recommended revenue completion percentage for it, and if you change this rule, the system uses the new rule to recalculate the recommended percentage.

Applying the Recommended Completion Percentage: Example

As an example of applying the recommended completion percentage, imagine that HM's Bakery and Cafe has ordered 20 hours of employee training on operating two juicers from SweetLife Fruits & Jams. You—SweetLife's project manager—have created a project with cost budget lines for these services:

• Four hours of juicer installation
• Twenty hours of training
• Four hours of inspection and maintenance

For this project, you’ve assigned the REVISEDAMT rule to each project task because you want to calculate the completion percentage for revenue by using the actual costs divided by the revised budgeted amount.

The project started on January 10, 2026. As of today, January 15:

• Both juicers have been installed.
• Ten hours of training have been delivered.
• Four hours have been spent on juicer inspection and maintenance.

While reviewing the Revenue Budget tab of the Projects (PM301000) form, you've noticed the following (see below):

• The training hours haven't been recorded: The line with the TRAINING project task has a recommended completion percentage of 0.
• Only two service hours of the four completed hours have been billed: The line with the MISCREPAIR project task has a recommended completion percentage of about 33 instead of about 67.

You've contacted the project accountant about entering and releasing the missing documents. After they’ve processed these documents, you've verified that each revenue budget line shows the correct recommended completion percentage. Now you can apply the actual completion percentage as follows:

1. Select all revenue budget lines (see Item 1).
2. On the table toolbar, click Update Completion % (Item 2). The system inserts the completion percentage for each line (Item 3).
3. Save your changes.

Now you're ready to bill the customer for the completed work on the project.

Comparing the Completion Percentage Across Rules

While viewing the project on the Projects (PM301000) form, you can click Completion % by Rules on the side panel (see Item 1). This side panel tab shows the new Completion % by Rules (PM407000) form.

Here you can compare the calculated completion percentages for different rules and decide which rule best reflects your company's revenue recognition policy for each project task. You can select a project task (Item 2), and see its calculated completion percentages (Item 3).

Creating a Revenue Percentage Calculation Rule

You may want to create other rules on the Revenue Percentage Calculation Rules (PM206500) form to support your company's business processes. Here's what you do:

1. Enter the rule ID and description to identify the new revenue percentage calculation rule.
2. Click the Edit button in the Formula box and specify the formula in the dialog box that opens (for details, see Formulas).

In addition, depending on your requirements, you can do any of the following:

• For the system to consider only cost lines with the same inventory ID as in the revenue budget line, select the Group by Item check box.
• For the system to use the project task of the revenue budget line to find the matching cost lines, select Project Task in the Group by Task box.
• If you use cost codes and need the system to use cost lines with the same cost code as the revenue budget line, select the Group by Cost Code check box.

Key Takeaways

• Less manual effort: The system calculates the recommended completion percentage for each revenue budget line.
• Flexible calculation rules: You can modify the predefined rules or create custom rules to match your workflow.
• Faster, more consistent progress billing: You can apply the completion percentages with a single click and then refresh the pending invoice amounts.
• Easier setup: You can assign a predefined calculation rule to a template once, and the system will use the rule for new projects and project tasks with that template selected.