Creating Revenue Plans Using the As Incurred Method

In this topic, you will learn how to recognize revenue for the rate-based contract lines. These contract lines are associated with the services you provide to customers via the contractual agreement.

Your goal is to create a revenue recognition plan using the As Incurred method.

Steps:

1. Begin by navigating to the Define Revenue Plan page.

    

   Click the Main Menu button.

   Step 1

2. Click the Customer Contracts menu.

   Step 2

3. Click the Schedule and Process Revenue menu.

   Step 3

4. Click the Define Revenue Plan menu.

   Step 4

5. Click the Add a New Value tab.

   Step 5

6. Click in the Business Unit field.

   Step 6

7. Enter the desired information into the Business Unit field.

    

   Enter "USCSP".

   Step 7

8. Click in the Contract field.

   Step 8

9. Enter the desired information into the Contract field.

    

   Enter "CON0000004".

   Step 9

10. Click the Revenue Recognition Method list.

    Step 10

11. Click the As Incurred list item.

    Step 11

12. Click the Add button.

    Step 12

13. Use the Revenue Plan page to define a revenue plan for contract lines in which revenue is managed by contracts.

     

    For each revenue plan that you define, you select a revenue recognition method for the revenue plan, and then define the events that trigger revenue recognition.

    Step 13

14. Click in the Description field.

    Step 14

15. Enter the desired information into the Description field.

     

    Enter "As Incurred Plan for 0000004".

    Step 15

16. The Plan Status list controls your ability to enter information into, and the processing that occurs against, the revenue plan. The available revenue plan statuses that you can control are: "Pending", "Ready", and "Cancelled".

    Step 16

17. Use the Add Milestone link to access the Milestone Entry page, where you can define a new milestone to add to a revenue plan event. This field is available for Milestone and As Incurred revenue plans only.

    Step 17

18. For Milestone and As Incurred revenue plans, select an Event Type of either "Date" or "Milestone". For Percent Complete revenue plans, the system populates this field with a value of "Date" because you cannot create any other type of event. Additional fields appear on the page based on your event type selection.

    Step 18

19. Your selection in the Event Status list controls your ability to enter information into, and the processing that occurs against, the revenue recognition event. The available revenue recognition event statuses that you can control are: "Pending" and "Ready".

    Step 19

20. The Accounting Date displays the date on which this event is valid for booking. For "Date" event types, this date determines when revenue can be recognized.

    Step 20

21. Use the Event Note link to create an internal note for your revenue plan.

    Step 21

22. Click the Save button.

    Step 22

Congratulations, you have successfully learned how to create revenue plans using the as incurred method.

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