We have recently tested the toggle on a subproject and activity which excludes it from the Progress Calculation.

Our scenario for this is we have a subproject with revenue but no cost - there is estimated revenue, planned revenue and posted revenue.  Currently, it would include this in the Periodical Cap process and consider this an overbilling as this subproject is basically 0% complete since there is not estimated or actual cost. 

In testing, I toggled this option on both the activity and the sub project and then approved the project so the Financial Project was created at that point.  The Financial project does not reflect the estimated revenue for this subproject - which I believe is correct. 

I ran the Periodical Cap process and the total estimated revenue does NOT include this subproject. 

However, I’ve got two issues. 

1. When the PPC is executed, the total pay app value is reversed, including the sub project which is marked as Excluded from Progress Calculation.  I don’t think this should happen if its marked, as the revenue shouldn’t be deferred.
2. When the next step to Execute Rev Rec occurs, it includes the full pay app value in the calculation, not just the subprojects which are not marked as exclude, so it calculates an overbilling and reduces the earned revenue by the amount of the subproject that is marked to Exclude from Progress Calculation.

Item to note - we have customized some aspects of the Periodical Cap process - the calculation and posting of the entry is done by subproject, not by project, as each subroject can have different pre-posting code party values.  It’s also possible there were some customizations done to the sales contract as it relates to projects as well.  

I have not been able to find anything documentation on what this toggle actually does to determine if the issues I see are base functionality or might be related to our customizations.

Is there anyone familiar with this toggle that could provide insight as to the base functionality of this toggle, I would greatly appreciate it. 

We are in Aurena, version 10.14.123.0