Thank you for supporting the Cloud Customer Connect Community in 2024. It's a gift to work with you!

Look back
You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register

Gross Revenue Recognition and contra-Revenue recognition instead of Allocated revenue

in Revenue Management 2 comments

Summary:

Problem Summary

---------------------------------------------------

Recognizing gross revenue, instead of allocated net revenue


Problem Description

---------------------------------------------------

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?

Tagged:

Howdy, Stranger!

Log In

To view full details, sign in.

Register

Don't have an account? Click here to get started!