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Revenue recognition schedule with a fixed rate based on the term of the contract

in Revenue Management 5 comments

Summary:

We are looking to have a Revenue recognition schedule with a fixed rate based on the term of the contract. For example, we have subscription that is 6 months long. If a subscription starts on July 18th, the business wants the 1/6th of the revenue to be recognized in July, 1/6 of revenue recognized in August, 1/6 of revenue to be recognized in September and so on.

It does not matter the start date or term length, revenue should be equally distributed based on the account period/ month we are in.

Another use case is the revenue should be fully recognized in the calendar year we are in. For example, if a subscription is 12 months , starts in August 1st, 2024. All the revenue should be distributed equally from August to December 2024 to fully recognize the revenue and the subscription will just continue to bill Jan - July 2025.

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