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Milestone Revenue Recognition

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We have a requirement where business wants to recognize revenue once milestones are accomplished. We do not have RMCS configured. We are exploring possibilities through Receivables.

They accounting we are looking at:

Invoice Creation:

Amounts in $

Receivables Dr 10000

Deferred Revenue 10000

Revenue Recognition at Milestone1 (No Specific Date)

Deferred revenue Dr 5000

Revenue 5000

Revenue Recognition at Milestone2 (No Specific Date)

Deferred revenue Dr 5000

Revenue 5000

1. Contingencies: we thought of multiple contingencies applied on an invoice according to number of milestones. But until all contingencies are removed, revenue will not be recognized on the invoice. So, this will not serve our purpose.

2. Deferred revenue rules: This goes by periods. We have to specify duration (fixed or variable) at the time of setup or at the time of invoice creation. We cannot recognize revenue irrespective of periods.

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