Why is quantity required when SMM is Measure Period Satisfied?
Summary: When we enter a contract with revenue recognition based on dates, why do we have to enter a quantity with the item information?
Content (required): We entered a contract with:
- Satisfaction measurement model of Measure Period Satisfied
- Performance obligation satisfaction method of Allow Partial
- Performance satisfaction plan of Daily Rate Partial Periods
- Plan start date and plan end date. Assume for this example an annual plan with a start date of 3/1/22 and end date of 2/28/23
- Quantity of 1, unit of measure each
In this example, assume a transaction price and SSP of $168 - no SSP allocation.
On contract creation, do we have to explicitly send a quantity of 365 days and a unit price of 168/365 = .4602739....?