Revenue Recognition
This section lists terms and their definitions for the Revenue Recognition application.
Actual Revenue
The revenue earned for the current period. Actual Revenue is posted to General Ledger and reported on financial statements.
Agreement Fee
The source of revenue contained in a Revenue Agreement. Agreement Fees track the amount of revenue that is recognized for each item and the period for which the revenue is recognized.
Agreement Revenue Adjustments
Represent the changes to the amount of revenue recognized during a period.
Agreement Revenue Schedules
Show the amount of revenue to be recognized during a period for a revenue fee. They contain the actual revenue as well as the forecasted revenue.
Agreement Revenue Summary
Represents the summary of all recognized and forecast revenue and deferred revenue balances for a single period for all agreement fees within an agreement.
Deferred Revenue
Revenue for services that have not yet been performed or goods that have not yet been delivered.
Obligation
A promise in a contract with a customer to transfer to the customer either:
- A good or service (or a bundle of goods or services) that is distinct.
- A series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.
Ratable
Type of revenue recognition rule that recognizes the fee amount over a period of time and calculates the deferred balance accordingly.
Reconciliation
The primary method used to verify the accuracy of an account's balance.
Revenue Agreement
The binding agreement between two or more parties that defines the terms under which revenue will be recognized.
Revenue Allocation
Allocation of revenue across multiple products based on a discount for selling them together.
Revenue Forecasts
Predicts a company's future financial state. Forecasted Revenue allows executives to plan future activities and provide guidance to investors and stakeholders on future performance.
Revenue Recognition
The process used to align revenue with the delivery of goods and services.
Revenue Recognition Policy
Defines how to recognize revenue for an Agreement Fee.
Revenue Recognition Rule
Determines how revenue will be recognized. Revenue Recognition Rules are the foundation rules of the policy that a company follows.
Revenue Term Rounding Method
The rounding method for computing the revenue term. Valid values are UP, DOWN, HALF_UP, and HALF_DOWN.
Subscription
Type of revenue recognition rule that recognizes the fee amount over a period of time but does not track deferred revenue.
Transaction Price
The net of net price and variable consideration.
Variable Consideration
Variable amount that is promised within a contract be included as a consideration for revenue recognition.