Revenue hold
Describes how a revenue hold prevents the creation of new revenue schedules, its impact on reporting visibility, and the additional steps required to reverse or cancel previously recognized or scheduled revenue.
The revenue hold is to prevent future revenue release. This type of hold can be applied after the revenue is partially released. When the revenue hold is applied, it will be applied to both revenue and allocation.
Aspect | Details |
|---|---|
| System behaviors | Blocks the actual creation of new revenue schedules (both revenue and allocation schedules) Note: A revenue hold does not reverse previously recognized revenue, nor does it cancel revenue that is already scheduled. |
| Reversing or Canceling Revenue | If you need to reverse previously recognized revenue or cancel scheduled revenue, applying a revenue hold alone is not enough. You must first manually defer the revenue, and then apply the revenue hold. Refer to the Manually defer or release revenue documentation for further information. |
| Manual Deferral or Recognition | While the revenue hold is active, manual deferral and recognition is blocked. The revenue hold must be released in order to perform the manual deferral or recognition actions. |
| Reporting visibility impact | Because new revenue schedules are not generated, the waterfall schedule for the affected contract or line is unpopulated for the remaining unreleased amount. |
| Fully Scheduled | If a transaction is already 100% released with revenue scheduled over the next 12 months, applying a revenue hold will have no impact. The revenue will continue to be recognized in those respective future months. |
| Partially Scheduled | If a transaction is 40% released and recognized, applying a revenue hold will block the remaining 60%. Even if that 60% meets the standard recognition criteria, it cannot be released or scheduled until the revenue hold is removed. |