How would you setup a rev rec rule for a monthly r...
# accounting
n
How would you setup a rev rec rule for a monthly rev rec where the start date is based on milestone completion, but the end date is static? So for example, the contract is from 1/1/2025 - 12/31/2025. However we don't want to start recognizing revenue until Milestone 1 is completed. WE don't know exactly when milestone 1 will be completed, but when it is we need to start recognizing revenue from that point (monthly) until the 12/31/25 end date. So it could be revenue recognized over 10 months...maybe 9 months, just depends on when Milestone 1 is done. Thanks
Side note, is we do bill for the service on 1/1/25, but wait to recognize revenue until Milestone 1 is completed.
k
Amount Source - on quantity, (fulfillment rule) start date source - event date (on fulfillment), end date source - source date (from your SO). Create plans on - fulfillment.
n
Thank you @Karina....however wouldn't this recognize the full amount on fulfillment? We would want it to recogonize monthly - straight line be even periods, but the start date would be dependent upon Milestone completion
k
you will have to fulfill 1/Nth each time and recognize it this way I think...
I would test test test. I had a client with this exact use case several years ago and I did make it work... Try Ratable on the item record (although - against all the rules!)
n
ok thank you...this makes snese