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            The Revenue Waterfall

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            The Revenue Waterfall

            The revenue waterfall is the distribution of revenue across one or more periods. This process represents revenue recognition as goods or services are delivered to your customers. It’s a key component of revenue reporting and forecasting. (Salesforce Billing Managed Package)

            Required Editions

            Available in: All Salesforce Billing Editions

            Salesforce Billing stores revenue waterfall information in revenue schedules and revenue transactions:

            • Revenue schedule: Salesforce Billing creates a revenue schedule record based on the fields defined in your revenue distribution method. The revenue schedule represents the total amount of revenue that comes from the delivery of a good or service. A revenue schedule record contains the following key fields.
              • The total amount of revenue to be recognized
              • The current period balance of deferred revenue
              • The total recognized revenue through the end of the current billing period
            • Revenue transaction: Each revenue transaction record represents revenue distribution for a single billing period. This object contains information about revenue to be recognized in the current period, the deferred revenue balance at the end of the period, and previously recognized revenue. This is the primary object used for posting recognized revenue to your general ledger.
            Example
            Example

            A customer purchases access to a video streaming service for the period of January 1 through March 31. The customer pays $120 up-front for the three-month period, which allows unlimited access to the service within those three months.

            In this case, you should already have a revenue distribution method with a Distribution Method field set to Monthly. When you invoice this purchase, Salesforce Billing creates a revenue schedule for $120 and 3 related revenue transaction records.

            Revenue Transaction 1

            • Period: January 1 through January 31
            • Recognized Amount: $40
            • Deferred Balance: $80
            • Previously Recognized Revenue: $0

            Revenue Transaction 2

            • Period: February 1 through February 28
            • Recognized Amount: $80
            • Deferred Balance: $40
            • Previously Recognized Revenue: $40

            Revenue Transaction 3

            • Period: March 1 through March 31
            • Recognized Amount: $120
            • Deferred Balance: $0
            • Previously Recognized Revenue: $80
             
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