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Planview Customer Success Center

Fixed price Milestone billing type

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With Fixed Price Milestone pricing, the client is billed when you have delivered a specific scope of work over a certain period of time, achieving a predefined milestone.  At that point, the client needs to pay an amount that depends on the time spent to complete the given milestone.

The Billing Type setting field at the project level for Billable Projects controls how financial planning schedules Budget Revenue, aggregated into work item Expected Revenue, and Actual Revenue aggregated into work item Actual Revenue, and is used for Revenue Forecasting and Revenue Recognition.

           

Prerequisites

f you can't configure your organization system settings or set User permissions, contact your administrator to ensure that the following prerequisites are met.

Enabled Global Settings

  • Set the Organization Currency Type in the global settings so that Project revenue and cost calculations are set by default to the correct currency in your org.
  • Enable the system settings 9.1: Budget Management. Defines whether to activate the budget module which enables budgeted cost and actual cost management.
  • Enable the system settings 9.3: Projects are Billable by default. Defines whether projects are billable by default, where revenue fields and variances are calculated.

User Permissions and Profile

  • Enable the Financial permissions for Users so that they can access financial fields and the financial planning view
  • Ensure the User Profile Property Card includes a Financial section with the following standard fields: 
    • Budgeted Cost, Actual Cost, CPI
    • Expected Revenue, Actual Revenue, RPI
    • Planned Profit, Profit, Earned Value, % Profitability

Project setting

  • Set the Billing Type Project field to Fixed Price Milestone
  • Set the Agreed Date for Exchange rate or Currency Exchange Rate Card at the Project level if project calculations should have difference Exchange Rate than the Org setting. Note that Fixed Price work items that use a different Revenue Currency Type from that of the Organization Base Currency, use the exchange rate of the project’s Agreed Date for Exchange Rate or the Project-level Exchange Rate if one is set. 

           

           

 

Working with Fixed Price

  1. Log in as a Project Manager.
  2. Create Project and set the due date and make it active. In our example, the due date is set to April 2026.
  3. Set the Revenue Currency Type column so that the Fixed price will be set for your Expected revenue in the correct currency. In our example, it is set to USD.
  4. Add Milestones and Tasks sub-items to your project and schedule resources. In our example, Milestone 1 due date is in February 2026, and Milestone 2 in December 2026.
  5. Set the Milestone Fixed Price. For example: 5,000 for Milestone 1 and 3,000 for Milestone 2.
    • The Expected revenue, Expected Net Revenue, and Expected Revenue (USD) are automatically set to 5,000 for the Milestone 1 and 3,000 for Milestone 2. The Project revenue is calculated automatically: 8,000.
    • The Revenue balance is derived for the Project and Milestones.
  6. In the financial view:
    • A new section is added for Capped/Fixed Price so that Budget revenue is visualized for each Milestone. 
      ​​​​​​clipboard_eb7f1c2d51c4c7656b13b8ce12882dd89.png
    • Go to Settings and Ad the following columns: Budget cost, Forecast Cost, Budget Revenue, Forecast Revenue, Actual Cost, Actual Revenue.
    • The Budget Cost and Forecast Cost are calculated based on the resource planned hours * Cost Rate.
    • The Actual revenue is set to 0. Note that you can use the Suggested Actual Revenue field to calculate the estimated revenue based on the resource planned hours and Billing rate.
    • The Forecast revenue and the Budget revenue are forecasted in the month of the Milestone due date: 5,000 in February 2026 for Milestone 1 and 3,000 in December 2026 for Milestone 2.

clipboard_ea2a305f2643f7191c071359b6738c85a.png

  1. Set the project to Complete:
    • On the Project, the Actual revenue is derived from the Expected Revenue (8,000) and Milestones Actual revenue is set respectively to 5,000 and 3,000.
    • In the Financial view, the Actual revenue is not changed and remains 0.

AdaptiveWork will calculate automatically CPI, RPI, Planned Profit, Profit, Earned Value, and % Profitability.