Calculation Methods Illustrated
This graphic illustrates how the different recognition methods (Equal Split, % Complete, Deliverable) impact the amount recognized each period.
- When a template's recognition method is Equal Split with the calculation type Months, equal amounts are recognized each period. So when the Total Revenue is 100,000 recognized over six periods, the amount recognized each period is 16,667. See What is a Recognition Template? for information about other calculation types available when using a template type of Equal Split.
- When a template's recognition method is % Complete, the amount recognized each period depends on the % Complete value set on the source record. So when the Total Revenue is 100,000 and the source record is set as 10% complete in period one, 25% in period three, and 100% complete in period six, the amounts recognized are 10,000 in period one, 15,000 in period three, and 75,000 in period six.
- When a template's recognition method is Deliverable, the source record's total revenue is recognized on delivery. So when the Total Revenue is 100,000 and the source record is active for six months, 100,000 is recognized on the delivery date at the end of the six months.