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 Revenue Distribution

Use

You can use this function to distribute revenues across multiple posting periods .You can decide if you want to distribute the revenues equally across the posting periods, or base revenue recognition on the billing plan.The billing plan determines the amount that is billed, and when it is billed.

You can also specify if you want a one-time posting of corrections in the next open or current posting period. Alternatively, you can distribute the corrections across all future posting periods.A correction might be required if there is a retroactive price change, for example.

Revenue distribution is determined on item level.You choose an option in the Revenue Distribution field in Customizing for the item category.

Revenue distribution types

Option

Description

Blank

Total Value Linear and Correction Value Undistributed

The total value of this item is distributed equally across all posting periods in the revenue lines. Correction values are put into the next open posting period or current posting period.

A

Total Value Linear and Correction Value Linearly Distributed

The total value of this item is distributed equally across all posting periods in the revenue lines. Correction values are distributed equally across all future posting periods.

B

Total Value Billing Plan-Based and Correction Value Undistributed

The total value of this item is distributed across the relevant posting periods in the revenue lines. Distribution is based on the billing plan.Correction values are put into the next open posting period or current posting period.

C

Total Value Billing Plan-Based and Correction Value Linearly Distributed

The total value of this item is distributed across the relevant posting periods in the revenue lines. Distribution is based on the billing plan.Correction values are distributed equally across all future posting periods.

Example Example

For examples of revenue distribution types A and C, see:

Total Value and Correction Value Linearly Distributed

Total Value Billing Plan-Based and Correction Value Linearly Distributed

End of the example.