How does Round Trailing work for Revenue distribution?

[monique]

I am using the revenue rule Daily Over Time. How does Round Trailing work for revenue distribution?

[monique · Accepted solution]

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.