PTC_MATERIAL_NAME parameter uses the material file. You can vary different materials in the family table.
You can also assign colors in materials.
I would think if A=B and B=C then A=C should work, but it doesn't.
-Create a material called BLUE and assign a blue color to it and a material called RED and assign a red color to it
-Add them to a Generic and assign PTC_MATERIAL_NAME to vary in the family table
-Create 1 instance that uses the RED material and one that uses the BLUE material
I would think the blue instance would be blue and the red instance red.
However, all parts (generic & instances) will always show the color for the last part that got regenerated.
I know there are other tricks (using surfaces) to fake the color. I'm using them myself. However, they all have their own downside. One downside is if someone references a red surface for mating and then replaces the component to blue. This will fail placement since the blue and red surfaces are different.