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Why is quantity required when SMM is Measure Period Satisfied? — Cloud Customer Connect
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Why is quantity required when SMM is Measure Period Satisfied?

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edited Apr 21, 2022 8:58PM in Revenue Management

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:

  1. Satisfaction measurement model of Measure Period Satisfied
  2. Performance obligation satisfaction method of Allow Partial
  3. Performance satisfaction plan of Daily Rate Partial Periods
  4. 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
  5. 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....?

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