Configuring Your Revenue Recognition Rules

Revenue recognition rules are a type of rule within the Salesforce Billing rules engine. All the products for which you want to recognize revenue require a lookup to a revenue recognition rule. When you order a quote, your order products inherit this lookup. When you invoice an order, your invoice lines inherit the same lookup. Salesforce Billing begins the revenue transaction development process at this time.

A revenue recognition rule record contains the rule itself and a related list that contains revenue recognition treatments. The rule determines whether Salesforce Billing performs creates a revenue schedule for the invoice line when you invoice an order product. If Salesforce Billing determines it must perform that action, the treatments specify how Salesforce Billing performs that action and stores a record of the action in the general ledger and finance book. When a revenue recognition rule evaluates an invoice line, Salesforce Billing applies one of the rule’s treatments if the order product and treatment have a matching legal entity.

If you want Salesforce Billing to create a revenue schedule for your invoice line, set your revenue recognition rule’s Create Revenue Schedule? field to Yes.

Once you define which products should have a revenue schedule, your revenue recognition treatments let you specify how Salesforce Billing splits up and processes that product’s revenue. Each treatment references a revenue distribution method, which controls how Salesforce Billing spreads revenue over a set time period.

• Revenue Recognition Treatments
  Revenue recognition treatments let you control how and where Salesforce Billing recognizes a product’s revenue. (Salesforce Billing Managed Package)
• Configuring Total Revenue Amount
  The revenue schedule's Total Revenue Amount field shows the amount of revenue that Salesforce Billing can distribute across revenue transactions. The total revenue amount inherits its value from one of several order product fields based on how you configure the Revenue Schedule Amount field. You can find the Revenue Schedule Amount field on your revenue recognition treatment. (Salesforce Billing Managed Package)