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I am using the revenue rule Daily Over Time. How does Round Trailing work for revenue distribution?
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Round Trailing only applies to the revenue rules:
Daily over time and Monthly Recognition over time
Rounding rules determine how to handle any remaining revenue amounts. The following options are available:
- Round trailing: Calculate the remaining revenue amount. Starting on the last day of the recognition period and working back in time, add $0.01 per day until the remaining amount is consumed.
- Round last: Calculate the remaining revenue amount. Add the remaining amount to the last day of the recognition term.
Suppose you have revenue of $135.33 that is recognized daily over a 90 day period, where the daily recognized revenue amount is $1.50 after rounding:
- Amount: $135.33
- Recognition term: 1/1/2013 through 3/31/2013 (90 days)
- Remaining amount: $0.33 =
$135.33 - [90 days * ( $135.33 / 90 days), rounded]
The following example shows how each rounding rule handles the remaining $0.33:
Round Trailing Rule | Amount | Explanation |
---|---|---|
January Accounting Period | $0.00 | No remaining amount is available to add to this accounting period |
February Accounting Period | $0.02 | $0.01 per day is added to the last two days of the accounting period |
March Accounting Period | $0.31 | $0.01 per day is added to this accounting period, which is in this case is 31 days for the month of March. |
Round Last Rule | Amount | Explanation |
---|---|---|
January Accounting Period | $0.00 | N/A |
February Accounting Period | $0.00 | N/A |
March Accounting Period | $0.33 | The whole remaining amount is added to the last day of the recognition term which falls in the Marching accounting period. |
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Round Trailing only applies to the revenue rules:
Daily over time and Monthly Recognition over time
Rounding rules determine how to handle any remaining revenue amounts. The following options are available:
- Round trailing: Calculate the remaining revenue amount. Starting on the last day of the recognition period and working back in time, add $0.01 per day until the remaining amount is consumed.
- Round last: Calculate the remaining revenue amount. Add the remaining amount to the last day of the recognition term.
Suppose you have revenue of $135.33 that is recognized daily over a 90 day period, where the daily recognized revenue amount is $1.50 after rounding:
- Amount: $135.33
- Recognition term: 1/1/2013 through 3/31/2013 (90 days)
- Remaining amount: $0.33 =
$135.33 - [90 days * ( $135.33 / 90 days), rounded]
The following example shows how each rounding rule handles the remaining $0.33:
Round Trailing Rule | Amount | Explanation |
---|---|---|
January Accounting Period | $0.00 | No remaining amount is available to add to this accounting period |
February Accounting Period | $0.02 | $0.01 per day is added to the last two days of the accounting period |
March Accounting Period | $0.31 | $0.01 per day is added to this accounting period, which is in this case is 31 days for the month of March. |
Round Last Rule | Amount | Explanation |
---|---|---|
January Accounting Period | $0.00 | N/A |
February Accounting Period | $0.00 | N/A |
March Accounting Period | $0.33 | The whole remaining amount is added to the last day of the recognition term which falls in the Marching accounting period. |
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