E1: 51: Working with Job Cost Methods of Computation (Doc ID 1543899.1)

The system uses the Method of Computation (MOC) assigned to each account to determine how the projected final values are calculated.  There are 19 predefined methods of computation available.  If a MOC is not selected for an account, the account will automatically be assigned the Default (D) MOC.  The MOC can be changed at any time during the life of the job.  Some methods of computation are designed to be used at the header account level only, while others are designed to be used at the detail account level. A job cost account that has only a job number and a cost code is a header account.  A job cost account that has a job number, a cost code and a cost type is a detail account.

Several methods of computation are designed to be used specifically with revenue accounts due to the credit nature of revenue accounts.  The MOC assigned to an account, controls the fields which are available for update when using the Progress Entry programs (See document 1528498.1, E1: 51: Working with the Field Progress Report, Account & Job Progress Entry).  A few of the methods of computation allow a user to override or force in projected final values, but most rely on the system to calculate the projected final values.

Ultimately, the projected final values calculated for each account, are used to determine the percent complete of a job which is then used in the profit recognition process (See document 1516731.1, E1: 51: R51800 Understanding Profit Recognition Process).  All 19 methods are described below with examples on how projected final amounts are calculated.  Throughout this document, the term “Projected Final Amount / Unit” is used interchangeably with the term “Estimate at Complete”.  The projected final values are stored in the HA ledger.