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Monthly recognition for period with full months and one partial month

If the service period is 11/18/2016 ~ 07/17/2017 with a fulll amount $1600, each month will have $200 revenue distributed, and based on the setting, the 2 partial months will recongnize $200 by days as $86.58 for November 2016, $113.42 for July 2017. However, if the period is 03/01/2017 ~ 7/17/2017 with amount $921.34, how the revenue will be recognized?



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Re: Monthly recognition for period with full months and one partial month

If the monthly recognition rule is set to use Invoice item service period start date and end date, then we will first calculate the how much revenue should be recognized in the partial month:

 

Total days: 03/01/2017 ~ 07/17/2017, 139 days

Amount distribute to each day should be 921.43 / 139 = 6.62899, if the currency decimal place is 2, we use 6.62 as the amount for each day

 

The partial month 07/01/2017 ~ 07/17/2017 is 17 days:
6.62 * 17 = 112.54

 

Then for the left 4 full months, it will be:
(921.43 - 112.54) / 4 = 202.22 with reminder of $0.01

 

The reminder will then be recognized in the last accounting period, so July 2017 accounting period then has been distributed $112.55, and other months, Mar, Apr, May and Jun will all distribute $202.22 for each month. 

 



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