Using the percentage of completion method, the primary purpose of this report is to calculate earned revenue and over/under billings by Contract. Earned Revenue is the % Complete multiplied by the Estimated Contract Amount of Completion which uses revenue projections if they exist for a contract item, that do not net to zero, otherwise it uses the Contract amount. % Complete is the ratio of Actual Cost to Estimated Cost of Completion. Estimated Cost of Completion is either the total projected or current estimated cost by contract item - e.g., item 1 projected cost = $500, item 2 projected cost = $0 projected cost, $700 of current estimated cost, Total contrac. Estimated Cost @ Complete = $1,200. Following standard accounting practices, Earned Revenue will be adjusted as follows if the report projects a loss, or in other words, the contract amount minus estimated cost @ completion is less than 0. Contract Amount + Actual Cost - Estimated Cost @ Completion. In order to make reconciling to GL easier, the report groups by job cost department (assigned to the contract item) and allows limiting to closed contracts in the current year via the beg/end closed month parameters.