Revenue Recognition: Fixed Price

For fixed-price projects, revenue is also recognized when time and costs are entered.

A budget is entered on the project as a baseline to reflect the fixed price.

As the project progresses, you must update a working budget to reflect the latest budget. When the working budget is updated and the Project Manager has evaluated the Estimate to Completion, the solution calculates the revenue to be recognized as the ratio between budgeted hours and the actual number of hours spent.

The Project Manager or Finance Department may adjust this revenue by percentage to completion as described in the Management section to update the revenue in the Project Management module and in the General Ledger.