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Revenue Recognition Method: Straight-line, using Exact Days

edited Jun 3, 2022 5:20PM in Accounting / ERP

When users use Straight-line, using exact days, Revenue Amount is allocated per period based on its number of days within the recognition period.

For example

Revenue Amount: $10,000

Rev Rec Start Date: January 30, 2022

Rev Rec End Date: April 25, 2022

Here's how user's can check the Revenue Amount period allocation:

1.) Get the Total Days w/in Start Date and End Date per month

2.) Get the ratio of # of days for the month/Total # of days

3.) Multiply Ratio to the Total Amount

Hope this helps 😊

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