Discussions
Is it best practice to use delivery rev rec rule for usage based items?
Hi, Gurus! :)
I have an ARM question related to usage-based items and best practices.
Example:
I sell cloud storage & charge based on usage.
I sell 100 GB of available storage.
Contract is for 1 year, and the client uses 5 GB in month 1, and 15 GB in month 2.
Question:
Is it best practice to have this as a "deliverable" item & create an SO for 100 units?
Potential setup:
Rev rec rule will be a "delivery" rule based on quantity.
Rev rec start and end dates will event dates.
Revenue arrangement will be created when I update arrangements.
Plans will be created upon delivery.
In month 1, I would "deliver" 5 units, which would trigger revenue plan.