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NSC | Revenue Recognition Method: Straight-line, using Exact Days
Scenario:
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
Solution:
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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