Generating Revenue Schedules after Revenue Has Been Recognized

When you generate revenue schedules after revenue has been recognized:

  • Revenue schedule lines with the status "Complete" are not updated.
  • Revenue Management uses the Recognized Revenue amount on a source record's "Complete" revenue schedule lines to calculate the amount recognized to date, rather than deriving it from the source record. This is to ensure data integrity.

You might need to edit a source record's Total Revenue, Start Date or End Date after some of its revenue schedule lines have been recognized. If this happens, the next time you generate revenue schedules the source record's "Recognizable" revenue schedule lines are updated. An additional catchup adjustment is applied to the first "Recognizable" revenue schedule line to correct the amount that should have been recognized to date. The "Complete" revenue schedule lines, and the Total Recognized Revenue on the revenue schedule, are unchanged.

The following examples illustrate how revenue schedule lines are recalculated when a source record's value or duration changes.

If you have a source record with a value of 12000 using an Equal Split - Months template over one calendar year (12 periods), the monthly revenue amount is calculated using the formula: Total Revenue / Number of Periods

This means that revenue schedule lines are generated for this source record as follows:

Period

Revenue
2022/001 1000
2022/002 1000
2022/003 1000
2022/004 1000
2022/005 1000
2022/006 1000
2022/007 1000
2022/008 1000
2022/009 1000
2022/010 1000
2022/011 1000
2022/012 1000
Total 12000

The following scenarios show how revenue schedule lines are recalculated when the source record changes after the first three periods have been recognized.

If the source record's value increases to 24000 after the first three periods have been recognized, the next time revenue schedules are generated, the unrecognized revenue schedule lines are recalculated as follows:

Period

Revenue

Recognized

Recalculated Revenue
2022/001 1000 1000 1000
2022/002 1000 1000 1000
2022/003 1000 1000 1000
2022/004 1000   5000
2022/005 1000   2000
2022/006 1000   2000
2022/007 1000   2000
2022/008 1000   2000
2022/009 1000   2000
2022/010 1000   2000
2022/011 1000   2000
2022/012 1000   2000
Total 12000 3000 24000

Recalculated monthly revenue is: 24000 / 12 = 2000

Period 2022/004 includes an adjustment to correct the amount that should have been recognized to date. This is worked out as follows:

Recognized to Date = 3000
Recalculated Recognized to Date = 6000
Difference = 3000

Therefore the revenue calculated for period 2022/004 is: 2000 + 3000 = 5000

If the source record's value decreases to 6000 after the first three periods have been recognized, the next time revenue schedules are generated, the unrecognized revenue schedule lines are recalculated as follows:

Period

Revenue

Recognized

Recalculated Revenue
2022/001 1000 1000 1000
2022/002 1000 1000 1000
2022/003 1000 1000 1000
2022/004 1000   -1000
2022/005 1000   500
2022/006 1000   500
2022/007 1000   500
2022/008 1000   500
2022/009 1000   500
2022/010 1000   500
2022/011 1000   500
2022/012 1000   500
Total 12000 3000 6000

Recalculated monthly revenue is: 6000 / 12 = 500

Period 2022/004 includes an adjustment to correct the amount that should have been recognized to date. This is worked out as follows:

Recognized to Date = 3000
Recalculated Recognized to Date = 1500
Difference = -1500

Therefore the revenue calculated for period 2022/004 is: 500 - 1500 = -1000

If the source record's end date is extended by another three months after the first three periods have been recognized, the next time revenue schedules are generated, the unrecognized revenue schedule lines are recalculated as follows:

Period

Revenue

Recognized

Recalculated Revenue
2022/001 1000 1000 1000
2022/002 1000 1000 1000
2022/003 1000 1000 1000
2022/004 1000   200
2022/005 1000   800
2022/006 1000   800
2022/007 1000   800
2022/008 1000   800
2022/009 1000   800
2022/010 1000   800
2022/011 1000   800
2022/012 1000   800
2023/001     800
2023/002     800
2023/003     800
Total 12000 3000 12000

Recalculated monthly revenue is: 12000 / 15 = 800

Period 2022/004 includes an adjustment to correct the amount that should have been recognized to date. This is worked out as follows:

Recognized to Date = 3000
Recalculated Recognized to Date = 2400
Difference = -600

Therefore the revenue calculated for period 2022/004 is: 800 - 600 = 200

If the source record's start date is put back three months after the first three periods have been recognized, the next time revenue schedules are generated, the unrecognized revenue schedule lines are recalculated as follows:

Period

Revenue

Recognized

Recalculated Revenue
2022/001 1000 1000 1000
2022/002 1000 1000 1000
2022/003 1000 1000 1000
2022/004 1000   -1666.66
2022/005 1000   1333.33
2022/006 1000   1333.33
2022/007 1000   1333.34
2022/008 1000   1333.33
2022/009 1000   1333.33
2022/010 1000   1333.34
2022/011 1000   1333.33
2022/012 1000   1333.33
Total 12000 3000 12000

Recalculated monthly revenue is: 12000 / 9 = 1333.333333

Period 2022/004 includes an adjustment to correct the amount that should have been recognized to date. This is worked out as follows:

Recognized to Date = 3000
Recalculated Recognized to Date = 0
Difference = -3000

Therefore the revenue calculated for period 2022/004 is: 1333.333333 - 3000 = -1666.666667

If the source record's start date is brought forward two months after the first three periods have been recognized, the next time revenue schedules are generated, the unrecognized revenue schedule lines are recalculated as follows. Note that revenue schedule lines are not created for the November 2021 and December 2021 periods because we do not create new revenue schedule lines with a value of zero, but the two extra periods are included in the recalculation.

Period

Revenue

Recognized

Recalculated Revenue
2021/011 - - -
2021/012 - - -
2022/001 1000 1000 1000
2022/002 1000 1000 1000
2022/003 1000 1000 1000
2022/004 1000   2142.86
2022/005 1000   857.14
2022/006 1000   857.14
2022/007 1000   857.15
2022/008 1000   857.14
2022/009 1000   857.14
2022/010 1000   857.14
2022/011 1000   857.15
2022/012 1000   857.14
Total 12000 3000 12000

Recalculated monthly revenue is: 12000 / 14 = 857.1428571

Period 2022/004 includes an adjustment to correct the amount that should have been recognized to date. This is worked out as follows:

Recognized to Date = 3000
Recalculated Recognized to Date = 4285.714286
Difference = 1285.714286

Therefore the revenue calculated for period 2022/004 is: 857.1428571 + 1285.714286 = 2142.857143

Note:

Revenue Management stores and displays currency values using the correct number of decimal places specified for the currency in Salesforce. For more information, see Currency Decimal Places and Rounding.