Use Rev Rec & Revenue Contingency feature in Receivables instead of Revenue Management Cloud (RMCS)?
Use Rev Rec & Revenue Contingency feature in Receivables instead of Revenue Management Cloud (RMCS)
My customer is following the IFRS 15 std and has the following rev rec scenarios:
- Normal sales - Rev is recognized only after the customer accepts the delivery even though shipping and invoice would have happened
- Bundle Sales - For example, one contract may have 4 lines (product, installation, parts, training) that are sold as a bundle. Bundle billing is done however the revenue is recognized for each line separately once that activity gets completed and accepted by the customer
I understand that I can implement RMCS and recognize revenue based on performance obligations and satisfaction events, however, my question is, can I do them without using RMCS and still remain compliant? I understand the IFRS doesn't allow deferring the revenue however using std. rev rec in AR will have the deferral involved and based on contingency, we will move it from deferral to recognition.