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Planview Customer Success Center

How is revenue recognized when more hours are booked than can be recognized?

Question
For example if there are 5 resources with time booked (8 hours each) but there is only enough revenue left to recognize 8 of those so the other 4 resources would go unrecognized. Which of the hours would it choose?


Resolution
The recognition process goes by date. It would be random if more than one time record has the same time date. If all time dates are same and there are mix of negative hours (time adjustments) and positive hours, first the negative hours will be recognized and then the positive hours.

Addional Note

1 - If resources belong to different cost centers doesn't play a role here.

2 - It doesn't matter if the limit is due to a limit set on the engagement, or on a fixed fee (effort expended).