To look up where a standard rate came from:
Standard revenue is useful for analyzing what you would have earned using your standard rates. For Fixed Price engagements or NTE engagements that exceeded the cap - it shows you what you would have earned if you billed every hour.
Contract revenue is useful for analyzing how much you should have earned. The delta between Billing Adjusted and Contract revenue is your loss due to delivery problems. For Fixed Price engagements - it shows you what you would have earned if you billed every hour.
Other Direct Cost Revenue
Because system revenue is your true revenue picture, it is also the basis for calculations of profitability and margin at all levels, including clients, engagements, projects, and resources.
This is simply the total of your time and expense revenue.
System Revenue Recognized
|Standard Revenue||Contract Revenue||Losses due to sales discounting. This is comparing your rack rates vs. the rates your sales team negotiated.|
|Contract Revenue||Billing Adjusted Revenue||Losses due to problems in the delivery process. This is comparing what your contract stipulated vs. what you needed to write off.|
|System Revenue||Billing Adjusted Revenue||Losses due to poor estimates on fixed price engagements. This compares what you would have earned on a T&M basis had an FP project been negotiated as such.|
Or, if you are using our Advanced Analytics Module (AAM) you can visualize your rate realization. The green bar represents what you actually earned. The stacked blue, red, and yellow bars represent revenue loss due to discounting, sales, and write downs.