Why is 'Planned Revenue' not matching 'Planned Billable Time'?

Question

Why is Estimated Revenue in my Task report not matching Estimated Billable Time in the Scoping of my fixed price project?

Answer

While these amounts always match in non-fixed price projects, it is not the case for fixed price projects.

For fixed price projects, Estimated Revenue is adjusted to sum up to your fixed price budget. So for all tasks Estimated, Estimated Revenue will show a smaller amount than Estimated Billable Time if you are going over budget or a larger amount than Estimated Billable Time if you are going under budget.

For example, if your Project Fixed Price is £ 5,000 and your total Estimated Billable Time is £10,000, then a task scoped for £ 1,000 of Estimated Billable Time will have a Estimated Revenue of $ 1,000 / (10,000 / 5,000) = £ 500 in your Task report.