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Planview Customer Success Center

Is it possible to recognize the full fixed fee amount using the Effort Expended method?

Symptoms
We use revenue recognition method 'effort expended' on a fixed fee. On one FF, at the end of the project, not enough hours have been booked so that the FF cannot be recognized to the full amount.

How can I make Changepoint recognize the full amount of the FF?


Resolution
Using effort expended, this is not possible. Changepoint will recognize time up to the total amount of the FF. If the time entered is less than the FF amount, CP will only recognize the amount of the time entered but not more.

If you want to be able to manually determine how much revenue to recognize, use the Physical Percent Complete (PPC) method. Changepoint will calculate a percentage, but it can be overridden manually.

If at the end of a project not enough time has been entered, the FF can be set manually to 100% to recognize the full amount.