Productive allows you to choose when the revenue from fixed price services will be recognised - as opposed to hourly services, where revenue is always recognised at the moment when the work is done (in other words, when you track time against a service).

To select your desired fixed price revenue recognition method, go to Settings > Revenue Recognition:

Here you can choose between two options:

1. Revenue from fixed-price services is recognised on a single date:

  • If the Budget is still open, the revenue will be recognised on the Budget date

  • If the Budget has been delivered, the revenue will be recognised on the Budget delivery date

2. Revenue from fixed-price services is spread across time:

  • The revenue is spread across the whole length of the Budget, based on tracked time and planned hours from Scheduling

Examples

What will this look like in real life?

Let's take a look at a Budget that has a fixed price service, 5 hours worked, 7 more hours scheduled in the future, and a budget start date that is set to April 28:

If the preferred method of calculating recognized revenue is set to single date, the revenue will be recognized for April - because the budget date is set to April 28:

If you're creating a report for a later date, the revenue will not be shown, even though the budget is still open:

But if you deliver the budget:

... the revenue will be reported in the month when it is delivered:

Now, let's take a look at what will happen if the revenue is recognised across time. Again, the budget has 5 hours worked in April and 7 more scheduled in May:

Notice that the date range is in April - so it doesn't take into account the scheduled hours from May. But when the range is expanded, it takes into account both worked and scheduled hours:

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