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Retrospective Contract Amendment Adjusted Revenue Calculation Period

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in Project Management 8 comments

Summary:

Adjusted revenue calculation event booking towards start of the contract when the amendment is done at mid life of contract duration

Content (required):

As per our business contract revenue calculation is done based on Percentage spent method.

User created a contract with start date as 1-Apr-2021. After that the cost to project booked on Aug-2021 for which POC revenue got calculated as 4179.6. On 16th Sep user has made the amendment which generated the adjusted revenue events for -4179.6 with period of 1-22 (Apr-21).

Since this was testing instance we have all the period open from Dec-20, but for adjustment why the event is getting created at the period on which start date for contract lies(Apr-21). At the start of the contract there was no cost /revenue booked causing a negative margin for the period on the contract.

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