Total Value and Correction Value Linearly Distributed
This example shows the distribution of revenues across the posting periods in time-related revenue recognition with revenue distribution type A. Distribution takes place as follows:
Equal distribution of the total value of an item in the revenue lines across all 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: 03/30/2008
Monthly value: 100 EUR
Billing at end of quarter
The billing document is released for the fourth quarter of 2007 with an amount of 300 EUR.The billing plan shows these values:
Settlement |
Quarter |
Billing document value in EUR |
Status |
|---|---|---|---|
10/01 – 12/31/2007 |
4 / 2007 |
300 |
Processed |
01/01 – 03/31/2008 |
1 / 2008 |
300 |
Not processed |
100 EUR are recognized monthly in the period from October 2007 through January 2008.
100 EUR of non-recognized revenues are determined in the forecast for the period February 2008 through March 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 |
100 |
0 |
0 |
2007 / 11 |
100 |
0 |
0 |
2007 / 12 |
100 |
0 |
0 |
2008 / 01 |
0 |
0 |
300 |
2008 / 01 |
100 |
0 |
0 |
2008 / 02 |
0 |
100 |
0 |
2008 / 03 |
0 |
100 |
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 billing plan shows these values:
Settlement |
Quarter |
Billing document value in EUR |
Status |
|---|---|---|---|
10/01 – 12/31/2007 |
4 / 2007 |
300 |
Processed |
01/01 – 03/31/2008 |
1 / 2008 |
390 |
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 15 EUR per month for two months (February and March).
The amount of revenues that have not yet been recognized is therefore 145 EUR. The revenue recognition overview shows these values.
Posting period |
Recognized revenues in EUR |
Non-recognized revenues in EUR |
Billed revenues in EUR |
|---|---|---|---|
2007 / 10 |
100 |
0 |
0 |
2007 / 11 |
100 |
0 |
0 |
2007 / 12 |
100 |
0 |
0 |
2008 / 01 |
0 |
0 |
300 |
2008 / 01 |
100 |
0 |
0 |
2008 / 02 |
0 |
145 |
0 |
2008 / 03 |
0 |
145 |
0 |