Generating Revenue Schedules after Revenue Has Been Recognized
When you generate revenue schedules after revenue has been recognized:
- Revenue schedule lines with the recognition status "Complete" are not updated.
- Revenue Management uses the Recognized Revenue amount on a source record's "Complete" revenue schedule lines to calculate the amount recognized to date, rather than deriving it from the source record. This is to ensure data integrity.
You might need to edit a source record's Total Revenue, Start Date or End Date after some of its revenue schedule lines have been recognized. If this happens, the next time you generate revenue schedules the source record's "Recognizable" revenue schedule lines are updated. An additional catchup adjustment is applied to the first "Recognizable" revenue schedule line to correct the amount that should have been recognized to date. The "Complete" revenue schedule lines, and the Total Recognized Revenue on the revenue schedule, are unchanged.
The following examples illustrate how revenue schedule lines are recalculated when a source record's value or duration changes.
If you have a source record with a value of 12000 using an Equal Split - Months template over one calendar year (12 periods), the monthly revenue amount is calculated using the formula: Total Revenue / Number of Periods
This means that revenue schedule lines are generated for this source record as follows:
|
Period |
Revenue |
|---|---|
| 2022/001 | 1000 |
| 2022/002 | 1000 |
| 2022/003 | 1000 |
| 2022/004 | 1000 |
| 2022/005 | 1000 |
| 2022/006 | 1000 |
| 2022/007 | 1000 |
| 2022/008 | 1000 |
| 2022/009 | 1000 |
| 2022/010 | 1000 |
| 2022/011 | 1000 |
| 2022/012 | 1000 |
| Total | 12000 |
The following scenarios show how revenue schedule lines are recalculated when the source record changes after the first three periods have been recognized.
Source Record’s Value Increases to 24000 after the First Three Periods Have Been Recognized