Revenue contract term is 5 years for a total contract value of $5000. Our requirement is to contrain the revenue and recognition only a portion of the commited value. Commited value is worth 1 year ($1000) that should be taken on day 1, and the remaining value ($4000) should be recognized after commited term is over. In this example, we will get a single SO line of total contract value of $5000 from 2018 to 2023. Our term for convinience date is 2019. As soon as the line gets absorbed into RevPro on 2018, 1yrs worth of contract value ($1000) should be recognized in 2018. Once we hit 2019, the remaining amount ($4000) must be released in 2019. How can this be done in RevPro 22.214.171.124?
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Hi, How does RevPro handle Overages upon a monthly minimum. a) If the monthly minimum amount is greater than the sum of its associated usage lines, then the revenue recognized must be equal to the minimum amount b) If the monthly minimum amount is less than the sum of its associate usage lines, then the revenue recognized must be equal to the sum of the usage line with the difference spread proportionately across the usage lines Please let us know how RevPro can handle this scenario. Following is an example of scenario b: Contract A is establish over a 12 month period with a minimum and 2 usage line items, and total contract value is $12000. The 2 usage line items are grouped under the minimum product. During Month 1: Contract initiation Minimum Line is set upon booking; $1000 spread ratably over 12 months Usage Line 1 is set upon invoicing; $0 at inception Usage Line 2 is set upon invoicing; $0 at inception During Month 2: The Usages get recorded and will be invoiced to the customer Usage Line 1 is invoiced for 600 Usage Line 2 is invoice for 600 Expected Result: Total Revenue for month 2 must be recognized at $1200; 1)revenue for minimum = 1000 2) revenue for usage line 1 = 100 3) revenue for usage line 2 = 100 Best Regards, Shalini
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