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NSC | Percentage Recognized in Period Exceeds 100%
Customers notice that the total calculation of % Recognized in Period in Revenue Plan has gone beyond 100%. They want to figure out why it happened or what caused it as any changes in the amount could lead to inaccurate financial reporting.
An explanation on possible reason why this happened is:
- Revenue Arrangement was created from the source transaction.
- The whole amount (i.e. USD 1,000) from the source transaction was billed.
- Revenue Recognition Journal Entry was generated for the whole amount as well.
- Amount in source transaction was edited and changed to a lower one (i.e. USD 800) instead.
- Revenue Arrangement and Revenue Plan got updated.
Clarisa De Torres | Ask a Guru
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