Total Val. Billing Plan-Based & Corr. Val. Linearly Distributed
This example shows the distribution of revenues across the posting periods in time-related revenue recognition with revenue distribution type C. Distribution takes place as follows:
Billing plan-based distribution of the total value of an item in the revenue lines across the relevant posting periods
Equal distribution of the correction values across all future posting periods.
Contract
Contract data
Start of contract: 10/01/2007
End of contract: 4/30/2008
Monthly value: 100 EUR
Billing at end of quarter
The billing document is released for the fourth quarter of 2007 with an amount of 238.71 EUR.The amount for October is a pro rata amount based on the number of days.The billing plan shows these values:
Settlement |
Quarter |
Billing document value in EUR |
Status |
|---|---|---|---|
10/20 – 12/31/2007 |
4 / 2007 |
238.71 |
Processed |
01/01 – 03/31/2008 |
1 / 2008 |
300 |
Not processed |
04/01 – 04/19/ 2008 |
2 / 2008 |
63.33 |
Not processed |
38.71 EUR are recognized on a pro-rata basis for October 2007, and 100 EUR are recognized monthly for the period November 2007 through January 2008.
100 EUR monthly of non-recognized revenues are determined in the precalculation for February through March 2008, and 63.33 EUR pro rata for April 2008. The revenue recognition overview shows these values.
Posting period |
Recognized revenues in EUR |
Non-recognized revenues in EUR |
Billed revenues in EUR |
|---|---|---|---|
2007 / 10 |
38.71 |
0 |
0 |
2007 / 11 |
100 |
0 |
0 |
2007 / 12 |
100 |
0 |
0 |
2008 / 01 |
0 |
0 |
238.71 |
2008 / 01 |
100 |
0 |
0 |
2008 / 02 |
0 |
100 |
0 |
2008 / 03 |
0 |
100 |
0 |
2008 / 04 |
0 |
63.33 |
0 |
Price change
In February, there is a price change for 2008 to 130 EUR monthly.
The billing document for the first quarter of 2008 contains the price change and shows an amount of 390 EUR.The last invoice for April 2008 is a pro-rata amount of 82.33 EUR. The billing plan shows these values.
Settlement |
Quarter |
Billing document value in EUR |
Status |
|---|---|---|---|
10/20 – 12/31/2007 |
4 / 2007 |
238.71 |
Processed |
01/01 – 03/31/2008 |
1 / 2008 |
390 |
Not processed |
04/01 – 04/19/ 2008 |
2 / 2008 |
82.33 |
Not processed |
Revenue Distribution
The revenue of 100 EUR for January 2008 has already been recognized, and the posting period for 01/2008 is already closed.
The difference of 30 EUR must now be distributed equally across all future posting periods (including the current posting period).This gives a correction value of 10 EUR per month for the three months (February-April).
This means that the amount of non-recognized revenues is 140 EUR from February through March, and 92.33 EUR for April. The revenue recognition overview shows these values.
Posting period |
Recognized revenues in EUR |
Non-recognized revenues in EUR |
Billed revenues in EUR |
|---|---|---|---|
2007 / 10 |
38.71 |
0 |
0 |
2007 / 11 |
100 |
0 |
0 |
2007 / 12 |
100 |
0 |
0 |
2008 / 01 |
0 |
0 |
238.71 |
2008 / 01 |
100 |
0 |
0 |
2008 / 02 |
0 |
140 |
0 |
2008 / 03 |
0 |
140 |
0 |
2008 / 04 |
0 |
92.33 |
0 |