SECTIONS
Generating Recognition Schedules after Revenue or Cost Has Been Recognized
When you generate recognition schedules after revenue or cost has been recognized:
- Recognition schedule lines with the status "Complete" are not updated.
- Revenue Management uses the Recognized Revenue and Recognized Cost amounts on a source record's "Complete" recognition schedule lines to calculate the revenue and cost recognized to date, rather than deriving them from the source record. This is to ensure data integrity.
You might need to edit a source record's Total Revenue, Total Cost, Start Date or End Date after some of its recognition schedule lines have been recognized. If this happens, the next time you generate recognition schedules the source record's "Recognizable" schedule lines are updated. An additional catchup adjustment is applied to the first "Recognizable" schedule line to correct the amount that should have been recognized to date. The "Complete" schedule lines, and the Total Recognized Revenue or Total Recognized Cost on the recognition schedule, are unchanged.
The following examples illustrate how recognition schedule lines are recalculated when a source record's value or duration changes.
If you have a source record with a total revenue of 12000 using an Equal Split - Months recognition template over one calendar year (12 periods), the monthly revenue amount is calculated using the formula: Total Revenue / Number of Periods
This means that recognition 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 recognition schedule lines are recalculated when the source record changes after the first three periods have been recognized.