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Revenue Recognition Treatments
Revenue recognition treatments let you control how and where Salesforce Billing recognizes a product’s revenue. (Salesforce Billing Managed Package)
Required Editions
| Available in: All Salesforce Billing Editions |
Your revenue recognition treatments define how Salesforce creates revenue schedules and revenue transactions for a transaction. They also define how Salesforce Billing records revenue transaction data in finance books and general ledgers. Let’s review the treatment fields that you can use to customize this process.
- Processing Order
- If you have multiple revenue recognition treatments targeting a single order product, you can give each of them a value here. Salesforce Billing applies your treatments in order starting with the lowest number.
- Type
- Defines the amount of the order product’s revenue that Salesforce Billing attributes to this treatment. If you select Percentage or Flat Amount, you can define their values in the Percentage and Flat Amount fields. Salesforce Billing divides your Flat Amount value by a time period that you define in the revenue distribution method. If you select Remainder, Salesforce Billing applies any of your order product’s leftover revenue to this treatment.
- Percentage
- Defines the percentage of a transaction that this treatment associates with a revenue schedule. For example, if you choose 75% of a $1000 transaction, your revenue schedule accounts for $750.
- Revenue Schedule Creation Action
- Defines the action that causes Salesforce Billing to create a revenue schedule and populate it with revenue transactions.
- Revenue Distribution Method
- Associate a revenue distribution method with this revenue treatment.
- Revenue GL Rule
- All transactions processed through this treatment record journal entries based on this GL rule.
- Revenue Finance Book
- All transactions processed through this treatment record entries in this finance book record.
- Revenue Legal Entity
- This treatment applies to all order products that were considered under the parent revenue recognition rule and have a matching legal entity.
Example You want to recognize half the revenue of your UK enterprise software sales in a
standard finance book and the other half in a deferred finance book. You could make a revenue
recognition rule with the following treatments. Since you want both treatments to apply to the
same order products, your treatments have the same legal entity.
| Name | Processing Order | Type | Percentage | Revenue Finance Book | Revenue Schedule Creation Action | Legal Entity |
|---|---|---|---|---|---|---|
| 50% Treatment - Standard | 1 | Percentage | 50 | ES Standard Revenue | Order Activation | UK ES |
| 50% Treatment - Deferred | 2 | Percentage | 50 | ES Deferred Revenue | Order Activation | UK ES. |
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