Retrospective Contract Amendment Adjusted Revenue Calculation Period
Adjusted revenue calculation event booking towards start of the contract when the amendment is done at mid life of contract duration
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.