Actual Revenue is recognized based on the RevRec Rule set on the Product Line Item. 

To Generate Actual Revenue for a Product:

  1. Create a Quote and add your product in the cart. Finalize the cart.
  2. Accept the Quote to create order and order line items. 
  3. Activate the order. 
  4. Once the order is created, enter the order activation date, order fulfillment date and ready for billing date. Click Save.
  5. Edit the order and enter the revenue recognition date. 
  6. Click Save. 
    Revenue Agreement, Agreement Fees, and Performance Obligations are created. 
  7. Navigate to your agreement fee and activate it. To activate an agreement, set Status Category as In Effect and Status as Activated. 
  8. Navigate to the revenue console and click Generate Actuals. 

Agreement Revenue Schedules are created. 


Expand the use cases to understand how revenue is recognized or different RevRec Rules. 

Immediate RevRec is used to recognize revenue for products with Charge Type as One Time Fee or Installation Fee.

For RevRec Rule as Immediate, a single Agreement Revenue Schedule is created with Actual Amount equal to the amount of the product.

Ratable RevRec Rule recognizes the fee amount over a period of time and calculates the deferred balance accordingly. For example, when you subscribe to video streaming and pay for one year upfront.

For RevRec Rule as Ratable, the Agreement Revenue Schedules are created for each contract period.

Consider the following use case:

  • Amount = $120,000.00
  • Revenue Agreement Date range = 1/1/2018 to 31/12/2018
  • Revenue Rule = Ratable
  • Frequency = Monthly
  • Term (no. of months) = 12

12 Agreement Revenue Schedules are created for 12 terms with the Forecast Amount as $100,000 each.

Actual Revenue is calculated according to the following formula:

Actual Revenue = [Fee Amount /12 ] * Number of terms

In Subscription RevRec Rule, the Fee amount is calculated based on the number of days in the term. Allocated revenue is a multiplication of the base monthly revenue and the number of days in a month.

For RevRec Rule as Ratable - Day, Agreement Revenue Schedules are created for each contract period.

Consider the following use case:

  • Amount = $100,000.00
  • Revenue Agreement Date range = 1/1/2018 to 3/31/2018
  • Revenue Rule = Subsription
  • Frequency = Monthly
  • Term (no. of months) = 3

3 Agreement Revenue Schedules are created for 3 terms.

Actual Revenue is calculated for each period according to the following formula:

Actual Revenue = [Fee Amount /Total Number of Days] *(Number of days in a term).

For the month of January, the Revenue Amount is $8,493.

For RevRec Rule as Manual, entering Ready for Revenue Recognition Date only creates Revenue Agreement and Revenue Fees.

You need to manually create Agreement Revenue Schedules.