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Gross Revenue Recognition and contra-Revenue recognition instead of Allocated revenue — Cloud Customer Connect
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Gross Revenue Recognition and contra-Revenue recognition instead of Allocated revenue

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Summary:

Problem Summary

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Recognizing gross revenue, instead of allocated net revenue


Problem Description

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Subscriptions to RMCS.

- Create a subscription with a couple products.

- Add price adjustments

- Activate the subscription and push data to RMCS

- Revenue contract created with perf obligations

- Revenue allocations calculated

- RMCS books allocated revenue


Requirement:

- Book gross revenue (equal to the billed amount)

- Book the Discount as Contra-Revenue


Example:

The Perf Obligation billed value = 4500

The allocated revenue = 4275


For a one-time revenue rec,

Revenue = -4500

Contra-Revenue = 225


For a Over period rev rec (5 periods)

Revenue rec each period = -900

Contra-Rev each period = 45


How can the above be achieved?

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