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COGS recognition proportionate to Revenue for non-inventory service items

edited 4:31AM in Revenue Management

Summary:

Our client has a requirement where they need

COGS recognition to be in proportion to Revenue recognized for non-inventory service items.

Let us say, that we are billing our customers via Subscription $10k/month for a period of 3 years.

There were associated costs which totalled to $36k which divided by 36 months (3 years) brings the per month cost as $1k and hence when RMCS recognizes the revenue of $10k every month, correspondingly, we would like to recognize COGS of $1k every month.

How do we achieve this using RMCS cloud?

If needed, what are the standard ways to achieve this requirement? Do we need Subscription Management Cloud, Enterprise Contracts, Projects to achieve this functionality? If so, how?

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