Company Add-Ons: Revenue Redirect

Use the Revenue section in the PM Company Add-Ons form to redirect add-on revenue to a separate contract item without a phase/cost type association.

This allows including add-on fees for pending change orders (external only) without updating phase/cost type cost estimates.

Once you check the Re-direct Add-on Revenue When Approved option, you will need to specify the contract item to which you are redirecting the add-on amount. If you specify a contract item that does not exist for the contract, it will be added once the ACO Item is generated. The contract item description will default from the add-on description, the UM will be set to LS, and the amounts will be set to 0.00.

Pending change orders can only point to a single contract item; redirecting an add-on to a separate contract item will therefore require that a separate change order item be created. The Create ACO Item option allows you to specify the numbering method to use when creating ACO items:

  • Use Revenue Item – This option will create an ACO item number equal to the specified Revenue Contract Item number.

  • Sequential – This option will generate a sequential item number based on a specified Start at ACO Item # value.

  • Fixed – This option allows you to use a specific ACO item number.

When approving a pending change order/item, the type of change order item determines how the system handles the revenue add-on amount. If a ‘pending’ amount (item amount changes based on markups, add-ons, and phase detail), the system will deduct the add-on amount from the original item. If a ‘fixed amount’ item, the add-on amount is not deducted from the PCO item amount.