Flexible Revenue Recognition in Subscription Management
Summary:
Scenario Description: Our customer, a renewable energy warehouse manufacturer, requires a solution to manage subscription-based service contracts. Specifically, they want the flexibility to recognize a revenue amount that is less than the total subscription amount. For example, in one scenario, the total subscription amount is $15,000, but they wish to recognize only $12,500. This percentage is not fixed and varies based on multiple factors. Consequently, they need the ability to manually input the revenue amount to be recognized, whether on a one-time or monthly basis.
Requirement
The system must allow for recognizing revenue amounts lower than the total invoice value for subscriptions. After reviewing the Revenue Management Cloud, we found no built-in capability to modify the recognized revenue amount.