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Manage Your Billing Processes with Salesforce Billing
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            Configure Revenue Schedules to Use VSOE

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            Configure Revenue Schedules to Use VSOE

            Vender-specific objective evidence refers to the process of determining how much revenue you assign to specific items within a multi-item sale. Use VSOE during revenue recognition to accurately assign revenue to your bundle components. (Salesforce Billing Managed Package)

            Required Editions

            Available in: All Salesforce Billing Editions

            When customers buy bundles, purchasing an entire bundle is often cheaper than purchasing each component individually. When this happens, you split the bundle during revenue recognition into its component services. You can customize your revenue recognition rule and treatment to apply a VSOE process that calculates the revenue Salesforce Billing assigns to each component.

            1. Within your bundle, identify all the component goods and services where you want to recognize revenue.
            2. Use VSOE to determine the standalone selling price of each of good and service.
            3. Use the standalone selling price for each good or service to determine the portion of the bundle’s overall revenue attributable to that good or service.
              For example, let’s say you have a bundle with 3 component services. The sum of the standalone selling price of all component services is $10,000. Your first service has a selling price of $5,000. Therefore, it represents 50 percent of your bundle’s revenue.
            4. Create a revenue recognition rule that contains a revenue treatment for each component that you want to track.
              Each revenue treatment should contain at least the following fields and values.
              • Name
              • Active: Selected
              • Type: Percentage
              • Percentage: Enter the percentage you calculated in step 3
            5. Make the revenue recognition rule active and assign it to your bundle product.
              When you invoice this bundle product, Salesforce Billing creates one revenue schedule for each bundle component. Remember, Salesforce Billing uses the following formula to calculate revenue for each revenue schedule.
              Total revenue amount = (Percentage from revenue treatment) * (Total order product amount for the bundle)
             
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