About Cost Amortization

You can amortize costs in the same way that you recognize revenue. The setup required is detailed in Setting up Revenue Management for Cost Amortization

When you run the revenue recognition process, cost values are generated for source records linked to settings records where Cost is included as a value type. Revenue values are generated for source records linked to settings records where Revenue is included as a value type. A source record can have both cost and revenue values.

You select, edit, and submit costs to amortize in the same way that you select, edit, and submit revenue to recognize. Cost values are recorded on revenue recognition transactions, and revenue transaction summaries, along with revenue values.

Note:

If Revenue Management is configured for multiple-element arrangements (to comply with ASC 606 or IFRS 15), you can amortize costs on performance obligations and revenue contracts. Provided that the necessary mappings are set up, cost values from source records are held on performance obligation line items, then rolled up onto performance obligations and revenue contracts. See Setting up Revenue Management for Cost Amortization for more information.