Skip to main content
Planview Customer Success Center

Revenue Recognition adjustement on fixed fee with PPC is lost

Symptoms
There is a fixed fee of $1000 with a PPC (Physical Percent Complete) of 50% so $500 have been recognized in the revenue recognition process. Then there was an adjustment of -$100 since $500 was too high.

All reports were looking fine and showing $400 as total now, but after the next cycle of revenue recognition, the revenue was back to $500. It seems my adjustment was lost.


Resolution
Revenue adjustments on PPC fixed fees only have an effect until the next cycle of revenue recognition. In your example, when we rerun revrec, Changepoint sees the fixed fee at $400 and compares it to the PPC. According to the PPC the fixed fee should be at $500 so Changepoint recognizes $100.

To permanently change the revenue for a PPC fixed fee, please change the PPC value before the next cycle of revenue recognition.