Fixed Fee Tickets
Purpose
A Fixed Fee Ticket is a smaller scale Fixed Fee Project. As in FF Projects, the challenge is to capture the revenue close to when the work is done. MSPCFO helps to represent this revenue stream vs. work done by setting algorithms to smooth out the monthly revenue postings. In the Options Table under Time Logs, a global smoothing calculation is set for a FF Ticket Discount. Each month before the Close Month, the revenue is calculated by calculating the shadow billable and then applying the discount. For example, in any month before the close month if the shadow billable is $1,000 and the discount is 25% then $750 of revenue is attributed to the FF Ticket and to the members that work on the ticket (Lookup/Options/Time logs/Fixed Fee Ticket Discount = .25). A reconciliation to the actual revenue is then done in the close month.
In the P&L, the revenue shows up on the Labor T&M line.
Filters
Settings for the filters are:
Filter the Date Range (1) started on the Minimum Month (2). For example if Open Date is selected and the Min Month is 2021-12, the report will contain any FF Tickets that opened for December of 2021 going forward. If the Closed Date is selected, the report will contain any FF Tickets that closed for December of 2021 going forward.
If the "Only Show Open Tickets" (3) is checked, the table will only contain FF tickets that have not been closed in your PSA.
To edit either the Discount or the Override End Date on a specific FF Ticket, click on the Edit button (4) which will turn green..
Remember to click "Filter" if changes have been made to any of the filters.
Table
The report contains FF Tickets that meet the filter criteria. The following are the columns for the report. The editable columns are bold:
- Client - The client name
- Ticket Summary - Information about the FF Ticket
- Date Start - The start date from your PSA
- Last Date Worked - Last date that work was done on the ticket from PSA
- Date Closed - The close date from your PSA
- Date Resolved - Resolved_at date from your PSA
- Invoiced Labor - The labor revenue that has appeared on an invoice with a 'sent' status (or has a paid date)
- Shadow Billable - The amount of revenue the members would have made for time billable to the ticket had the actual rate been used
- Efficiency - invoiced labor/shadow billable
- Discount (editable field) - A standard discount is applied to the shadow billable to calculate the attributed revenue. The standard discount is set in the Lookup/Options table. This discount allows an override discount on an individual ticket.
- Hard Cap (editable field) - A cap can be put on the accrued revenue to allow for a FF ticket with either no revenue or significantly less revenue than the work that is done. Revenue credit is limited to the value of the hard cap when the value is reached.
- Override Close Date (editable field) - The close date is entered in your PSA. MSPCFO looks at the month, not the day. If the close date is missing from the field in the PSA or if it is not the correct month, this field allows an override for the individual ticket.
- Type - Ticket type
- SubType - Ticket subtype
- Item - Ticket item
Remember to turn on the Edit switch (turns to green) to do any editting of the Discount, Hard Cap, or Override Date Closed.
In the examples below, the default Discount is set at .25 (25%). In the second row FF Ticket example, no labor revenue has been charged to the ticket, but members have put in time. With the override discount set at .75 (75%), only 25% revenue credit will be given to the FF Ticket in the month of December. This ticket has some more work to be done. The override close date is moved to January when the ticket will be trued-up.
On the fourth FF Ticket row, this FF ticket is being done for no revenue as a bonus to the client. A Hard Cap is set to $0. No revenue credit will be given to the FF ticket, but also the members will not get any revenue credit either.
Since the Edit switch is turned on, the information is saved automatically once a change has been made. A calculation of the data must be made before the changes take effect.
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