What is Milestone Revenue Recognition?

Milestone is a method of revenue recognition that recognizes revenue for an activity or project only when a defined milestone (event or condition) has been reached. There is no relationship to cost, unless the milestone is based on percentage of completion.

Milestone revenue can be used with any billing method. The segmentation of the revenue determines where the milestone records are set up. If the milestone revenue is segmented, the milestone records will be set up at the posting level. If the milestone revenue is non-segmented, the milestones will be set up on the contract activity. Milestones are defined manually or in terms of days, dates, or percentages of completion.