Generating Recognition Schedules after Revenue or Cost Has Been Recognized

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 schedule lines for current and future periods are updated. Depending on the adjustment type used by the source record's recognition template, either an additional catchup adjustment is applied in the generate period to correct the amount that should have been recognized to date (retrospective adjustment), or the values of the remaining "Recognizable" schedule lines are adjusted according to the template's calculation type (prospective adjustment). Any periods that end before the generate date, and the Total Recognized Revenue or Total Recognized Cost on the recognition schedule, are unchanged.

See the examples below for more information, and Regenerate Following Source Record Changes for the full rules about how recognition schedules are regenerated.

Note:

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.

Examples

The following examples illustrate how recognition schedule lines are recalculated when a source record's value or duration changes after revenue has been recognized.

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.

Note:

Revenue Management stores and displays currency values using the correct number of decimal places specified for the currency in Salesforce. For more information, see Currency Decimal Places and Rounding.