Allowing Flexibility of Period End for % Complete Recognition Schedules

When using the % Complete recognition method, Revenue Management generates recognition schedules for the recognition period during which the generate process runs. For example, if you generate recognition schedules in January and the recognition period is January 1–January 31, recognition schedules are generated for the period January 1–January 31.

The last day of the recognition period is the cutoff for recognition schedule generation. This means that if the recognition period is January 1–January 31, any change to a source record's % Complete value on February 1 is included in February’s recognition schedules, not January’s. This can result in revenue for work that was completed in January being included in February's recognition schedules. For example, if timecards that contribute to a milestone's % Complete are submitted on January 31 but not approved until February 3, they are included in the recognition schedules generated for February even though they relate to work done in January.

The Offset for Period Cutoff field on recognition templates allows you to extend the end of recognition periods so that updates to a source record's % Complete at the start of the following month are included in the recognition schedules for the period that has just ended.

For example, let's assume your recognition periods follow calendar months and you set the Offset for Period Cutoff to 5 days. Your source record's Start Date is January 1 2024. Notice which period recognition schedules are generated for depending on the generate date:

Generate Date	Result
January 1–31	Recognition schedules are generated for January
February 1–5	Recognition schedules are generated for January
February 6	Recognition schedules are generated for February

The Offset for Period Cutoff value must be between 0 and 28 days. If the field is 0 or blank, no offset is applied and recognition schedules are generated for the current recognition period.

Warning:

Do not change a recognition template's Offset for Period Cutoff value once recognition schedules have been generated for source records using that template. Doing so might result in recognition values unintentionally moving into the previous period (if the generate process runs during the offset) and because that is a historic period you cannot move the values back into the current period.

If you do need to change the offset, do it after the offset has passed for the current period. For example, if you want to change the offset from 5 days to 3 days, make that change after day 5.

Note:

If you migrate to using recognition schedules and you generate recognition schedules after the opening balance cutoff date but on a day that falls within the offset for period end cutoff, a source record will have a "Recognizable" recognition schedule line earlier than its "Opening Balance" line. This has no effect on how the source record is recognized.