Basic information

Applies to: All revenue rule models

Basic Information about the revenue rule includes:

• Name: The namefor the rule.
• Recognition Model: The name of the revenue rule model on which the rule is created.
• Active: Select this check box to activate this rule for use.
• Description.

Recognition term

Applies to: Daily recognition over time, Full recognition on a specific date, Monthly recognition over time

Invoice items

For the Daily recognition over time rule or the Monthly recognition over time rule:

You can define when to start and stop recognizing revenue by configuring one of the following options:

• Time period, such as Invoice Item Service Period Start and Invoice Item Service Period End.

• Number of years, months, days after the time period. For example, start recognizing revenue 10 days after the Invoice Item Service Period Start and stop 10 days after the Recognition Term Start date.

For the Full recognition on a specific date rule, you can configure the time period or number of years, months, days after the time period in which to recognize revenue. All revenue is recognized on that date.

When configuring the recognition term by number of years, months, or days, the maximum number allowed for each is:

• Years: 20

• Months: 120

• Days: 5,000

Calculating the Term Start Date

Applies to: Daily recognition over time, Full recognition on a specific date, Monthly recognition over time

The calculation for the recognition term start date:

[selected time period date] + [# of years or months or days] = Recognition Term Start Date

Calculating the recognition term start date using number of years or days is straightforward. For months, the calculation considers the varying number of days in a month and leap years. For example, If the Invoice Item Service Period Start date is December 31 and revenue recognition starts one month after that date, the recognition term start date is January 31. If the period start date is October 31 and revenue recognition starts one month later, the recognition term start date is November 30.

Calculating the Term End Date

Applies to: Daily recognition over time, Monthly recognition over time

The calculation for the recognition term end date:

[recognition term start date] + [# of days] = Recognition Term End Date

OR

[recognition term start date] + [# of years or months] - 1 = Recognition Term End Date

For example, if the Recognition Term Start date is March 31 and revenue recognition stops one month after that date, the recognition term end date is April 29. If the term start date is April 30 and revenue recognition stops one month later, the recognition term end date is May 29.

For example, suppose that you want to know what the recognition term and start dates for your subscriptions charge are based on the following criteria:

• Daily Recognition over time rule
• Recognition term starts 30 days, 1 month, or 1 year after the Subscription End Date
• Recognition term ends 30 days, 1 month, or 1 year after the Recognition Term Start Date

The following table shows the resulting term start and end dates:

Invoice Item Adjustment

For Invoice Item Adjustments, you can use the same recognition term dates as the invoice item settings. You can also configure a term start and stop date specific to invoice item adjustments.

Note that Invoice Item Adjustment will not be available if you enable the Invoice Settlement feature.

To configure a term start and end date, the following options are available:

• Use the Invoice Item Adjustment Service Period

• Use the same Recognition Term from the Invoice Item (default)

• Define separate Recognition Term.

• Don't define a Recognition Term. Let me manually distribute revenue.

If you define a separate recognition term for invoice item adjustments, the options are the same as invoice items:

• Time period , such as Invoice Item Service Period Start and Invoice Item Service Period End.

• Number of years, months, days after a specific time period . For example, start recognizing revenue 10 days after the Invoice Item Service Period Start and stop 10 days after the Recognition Term Start date.

Credit Memo Items

Credit Memo Items is only available if you enable the Invoice Settlement feature.

For the Daily recognition over time rule or the Monthly recognition over time rule:

You can select which options to use as the Recognition Term for the credit memo items:

• Product Rate Plan Charges

  • Use Credit Memo Item Service Period

  • Define Separate Recognition Term

  • Don't define the Recognition Term. Let me manually distribute the revenue

• Subscription Rate Plan Charges

  • Use Credit Memo Item Service Period

  • Define separate Recognition Term

  • Don't define the Recognition Term. Let me manually distribute the revenue

• Invoice Items

  • Use Credit Memo Item Service Period

  • Use the same Recognition Term from the Invoice Item

  • Define separate Recognition Term

  • Don't define the Recognition Term. Let me manually distribute the revenue

For the Full recognition on a specific date rule:

You can select which options to use as the Recognition Term for the credit memo items:

• Product Rate Plan Charges

  • Define Separate Recognition Term

  • Don't define the Recognition Term. Let me manually distribute the revenue

• Subscription Rate Plan Charges

  • Define separate Recognition Term

  • Don't define the Recognition Term. Let me manually distribute the revenue

• Invoice Items

  • Use the same Recognition Term from the Invoice Item

  • Define separate Recognition Term

  • Don't define the Recognition Term. Let me manually distribute the revenue

Define separate recognition term

You can define when to start and stop recognizing revenue by configuring one of the following options:

• Time period , such as Credit Memo Item Service Period Start and Credit Memo Item Service Period End.

• Number of years, months, days after the time period . For example, start recognizing revenue 10 days after the Credit Memo Item Service Period Start and stop 10 days after the Recognition Term Start date.

Debit Memo Items

Debit Memo Items is only available if you enable the Invoice Settlement feature.

For the Daily recognition over time rule or the Monthly recognition over time rule:

You can select which options to use as the Recognition Term for the debit memo items:

• Product Rate Plan Charges

  • Use Debit Memo Item Service Period

  • Define Separate Recognition Term

  • Don't define the Recognition Term. Let me manually distribute the revenue

• Invoice Items

  • Use Debit Memo Item Service Period

  • Use the same Recognition Term from the Invoice Item

  • Define separate Recognition Term

  • Don't define the Recognition Term. Let me manually distribute the revenue

For the Full recognition on a specific date rule:

You can select which options to use as the Recognition Term for the debit memo items:

• Product Rate Plan Charges

  • Define Separate Recognition Term

  • Don't define the Recognition Term. Let me manually distribute the revenue

• Invoice Items

  • Use the same Recognition Term from the Invoice Item

  • Define separate Recognition Term

  • Don't define the Recognition Term. Let me manually distribute the revenue

Define separate recognition term

You can define when to start and stop recognizing revenue by configuring one of the following options:

• Time period, such as Debit Memo Item Service Period Start and Debit Memo Item Service Period End.

• Number of years, months, days after the time period. For example, start recognizing revenue 10 days after the Debit Memo Item Service Period Start and stop 10 days after the Recognition Term Start date.

To know about recognition rules, refer to Recognition rules.