Calculating Product Contract Revenue

Use this procedure to calculate revenue amounts and recognize revenue for product sales. Revenue will only be calculated for product contracts that have been released. Regardless of any other deferred revenue for this contract, free maintenance revenue will always be recognized by the maintenance revenue program and will not be used for revenue recognition by the product revenue program. When run in update mode, the product revenue program makes the same journal entries as the Revenue Calculation (BR130).

To calculate product contract revenue

  1. Access Product Revenue Calculation (BR153).
  2. To calculate revenue amounts for an activity, use the following guidelines to enter field values:
    Activity Group List, Activity Group, Activities, or Activity List

    Type or select the activity group list, activity group, up to six activities, or activity list to calculate revenue amounts.

    Note: Revenue amounts are calculated for all billable activities included in your selection.
    Update

    Select Yes to update the activities selected with the product revenue calculations and update the General Ledger and view a report, or select No to view a report of the calculations that will be performed when updated. The default is No.

    Thru Date

    To calculate revenue as of a certain date, type the date. If left blank, the system date is used.

    For most revenue situations, this date is not needed. However, for contracts with deferred revenue, deferred revenue schedules will exist, and any deferred revenue schedule line that has a date on or before the Thru Date and a Status = 1 is recognized for revenue.

    Transaction Date

    Type the date to use as the transaction date for the revenue calculation transactions. This date will be the transaction date on both the AC and GL transactions created.

    This date is required if the Through Date is specified and is not equal to the current system date.

    If specified, the transaction date is used as the effective date when determining the currency exchange rate in multiple currency situations. If this date is not specified and multiple currencies are used, the system date is used to determine the currency exchange rate.

    Posting Date

    Type the date to be used for the posting date for revenue calculation transactions. This date will be the posting date on both the AC and GL transactions created. This date is required if the Through Date is entered and is not equal to the current system date.

    Summarize Report

    Select whether or not to print the report in summarized format. The default is No.