Aggregating Financials at the Contracts level
Financial behavior at the contract level is designed to provide a consolidated financial view of professional services engagements, independent of how delivery work is structured or scheduled. Contracts represent commercial commitments, while projects, milestones, and tasks represent execution. For this reason, financial aggregation focuses on delivery outcomes rather than delivery timelines.
Aggregating financials at the contract level allows organizations to track revenue performance across multiple work items, funding sources, and delivery structures under a single commercial agreement. This approach supports financial reporting, forecasting, and integration with downstream financial and revenue recognition systems.
Contract Dates vs. Delivery Dates
Contract start and end dates represent the commercial validity of the agreement. They are intentionally not dependent on the dates of associated projects, milestones, or tasks. This separation supports common professional services scenarios such as:
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Contracts that span multiple delivery phases implemented as separate projects
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Delivery work that starts before or ends after formal contract dates
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Contract renewals or amendments without immediate delivery changes
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Parallel or overlapping delivery work under the same commercial agreement
Contract dates define commercial scope. Delivery dates define execution planning. Financial aggregation is driven by delivery activity, not by contract timelines.
Example Scenario
Scenario: One Contract, Multiple Projects
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Contract Duration: January 1 – December 31
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Contract Value: $1,000,000
The contract includes three delivery projects:
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Project A (January – March)
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Project B (April – August)
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Project C (September – February of the following year)
Each project has its own milestones, tasks, budgets, and forecasts.
How financial aggregation works:
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Actual, budget, and forecast revenue are collected from Projects A, B, and C
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All values are aggregated at the Contract level
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Project C revenue is included even though it extends beyond the contract end date
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The contract provides a single consolidated financial view across all delivery work
This ensures financial visibility remains accurate even when delivery timelines vary.
Visual Explanation (Conceptual)
Contract
│
├── Project A (Jan–Mar)
│ └── Milestones / Tasks → Revenue
│
├── Project B (Apr–Aug)
│ └── Milestones / Tasks → Revenue
│
└── Project C (Sep–Feb)
└── Milestones / Tasks → Revenue
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The Contract is the financial aggregation point
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Projects, milestones, and tasks contribute revenue through direct associations
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Aggregation is based on delivery data, not contract dates
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Purchase Orders provide funding context but do not drive aggregation
Currency Configuration
Contracts support separate currencies for cost and revenue tracking.
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Revenue Currency
Defines the currency used for revenue calculations -
Currency Exchange Rate
Defines the exchange rate used for contract-level financials
Financial Aggregation Rules
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Financial aggregation is calculated based on direct links to Work Items
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Purchase Orders are not used as a source for financial aggregation
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Aggregated financials are calculated at the parent relationship level
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Only direct associations are included in rollups
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No additional aggregation logic is applied beyond the defined parent relationships
Aggregated Financial Metrics
Contracts calculate the following aggregated values from directly associated work items:
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Aggregated Actual Revenue
Aggregates actual revenue from delivery execution -
Aggregated Budget Revenue
Aggregates budgeted revenue from delivery planning -
Aggregated Forecast Revenue
Aggregates forecasted revenue based on current delivery expectations
These aggregated values provide consistent and reliable visibility into contract-level financial performance across delivery execution.