Contract - Offer - Recognition

[Former Member]

Hi,

Is it possible to have the below in Revenue Recognition:

Contract is created for 1200$ for a period of 12 Months. That means 100 $ per month. SO the revenue is recognized as 100 $ per month.

Now the revenue has to be recognized as : 80 $ per month for a period of 15 months.

Is this possible ?

Regards

Edited by: SAP2020 on Jun 28, 2010 5:21 PM

[former_member184555]

Though I have very limited knowledge in RR functionality, I feel it is the standard process only.

Your contract validity period should be for 15 months and the billing plan should have 15 billing dates for 15 months with 80$ each. Every month during the RR run the system will recognise the revenue for fifteen months.

Thanks,

Ravi

[Former Member]

Hi Ravi,

Thanks for the lightning response.

Can you please explain me in detail.

Let me explain further:

Contract yearly value is $1200.00. Instead of revenue being recognised $100.00 over 12 months can we recognise $80.00 over 15 months.

The business wishes to incentivise customers to take up their renewals with this offer of 15 months for the price of 12.

Regards

Edited by: SAP2020 on Jul 1, 2010 12:15 PM