Learn how revenue recognition works for calculated charges, including default booking behavior, booking and billing transactions, and revenue recognition events.

When configuring revenue recognition for calculated charges (e.g., support fees), the following default behaviors and system assumptions apply.

Default Behavior

• Revenue Model: Calculated charges default to a booking-based revenue model.

• To use a billing-based approach, set the Exclude Revenue from Booking flag to true.

Booking Transactions

The system handles booking transactions for calculated charges as follows:

• Sales Order Lines: Calculated charges are created as standalone Sales Order (SO) lines, similar to usage charges.

• Contract Value (CCV / ELP):

  • Contracted Current Value (CCV): 0

  • Estimated Line Price (ELP): 0

• Triggering Events: Booking lines are updated only through, ‘Order actions’ and ‘Amendment actions’.

• System Flags:

  • Restricted SO Update is always set to true and the behavior is consistent with usage charges

Billing Transactions

• No changes apply to billing behavior.

• Billing transactions continue to be generated directly from invoice items.

Revenue Recognition Events

• Calculated charges (e.g., support fees) are not displayed at the event level. There is no impact on revenue recognition event processing.