The "Percent" recognition amount computation method allows the user to specify the percent of the total line amount to be recognized in the given period.
To use this method, follow the below process on the invoice details or the bill details page:
- If not yet set to it, select "Monthly" or "Quarterly" or "Yearly" as the recognition cadence parameter on the line(s)
- Select "Percent" as the recognition computation type
- The above two steps may not need to be done if the "Item" parameters upon which a line is based is pre-set
- The above two steps may not need to be done if the "Item" parameters upon which a line is based is pre-set
- Select the service start and end date and click Apply
- Save these parameters and service dates by clicking "Update Line Parameters"
- View the updated invoice/bill using "View updated invoice" or "View updated bill" button
- Click the "%" button on the line to view the %s in each period, make any edits / adjustments then click "Update percents"
- By default, the system allocates the same percent to each period of the schedule to be created. This can be edited after
the service start and end dates have been saved (step 4).
The edited/updated %s in each period will now be used to compute the amount recognized in each period in the schedule.
Notes:
The percent in any period can be 0% too - which allows creation of schedules with "holes" i.e. some periods where no amounts are recognized.
If the sum of the %s entered is not 100% (over or under), on execution of "Update Percents" Flowrev will adjust each % number in each period so that the sum will equal 100%.
Once a schedule for a line has been created, the % allocation of any period will no longer be editable.
The steps listed above are shown in the screenshots below - first select "Percent" as the Recognition computation method.
Then set the service start and end dates.
Save the recognition parameters and service dates set by clicking "Update line parameters"
View the updated invoice to review and change the percentages - by default each period will have the same percent.
By default each period will have the same percent - in the example below, 50%, which the user can change to the desired percent and this is shown as changed to 30% and 70%. After editing, save the percents using the "Update Percents" button.
Once the percents have been changed and saved the schedule for this line, once generated from the Revenue page, will be according to the parameters, service dates and percents set.