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Revenue allocation for terminated line

in Revenue Management 2 comments

Summary:


Hi Team,

we are referring the latest 24A release notes in that we can see for PROSPECTIVE ACCOUNTING TREATMENT FOR IMMATERIAL PRICE CHANGES OF SUBSCRIPTION PRODUCTS

that Revenue recognized until the termination date remains intact and the remaining transaction price on the customer contract in Revenue Management is reallocated among the open performance obligations.

So could you give more information on this ?

Example :

line 1 : amount 100, allocated amount is 150, for a period of 1 year

line 2 : amount 100, allocated amount is 50, for a period of 1 year

if line 1 got terminated in 6 months. Due to which, reallocation will be happened for Line # 2.

How system will work? Balance amount only will be reallocated or only impacted for new periods?

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