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Organizing Your Revenue Transactions in a Revenue Schedule
A revenue schedule stores records of revenue transactions you’ve made against an order product. Use this object to track the total amount of revenue you’ve recognized within the timeframe set by your revenue recognition rule. You can also split revenue from one order product into multiple revenue schedules based on your recordkeeping needs. (Salesforce Billing Managed Package)
Required Editions
| Available in: All Salesforce Billing Editions |
Salesforce billing automatically creates revenue schedules for a transaction when the revenue recognition rules evaluating that transaction have a Create Revenue Schedule? field set to Yes. The treatment or treatments determine the revenue distribution method for your transaction. Your method also defines whether Salesforce Billing creates revenue transaction records automatically or manually. We recommend automating the transaction creation process unless you use a revenue recognition model that Salesforce Billing doesn’t support.
Your revenue schedule defines its term based on your method’s Revenue Schedule Term Start Date field and Revenue Schedule Term End Date field. The revenue schedule contains a number of revenue transaction records based on your schedule’s revenue start date, revenue end date, and your distribution method. Here are few examples of revenue transaction creation. The first two examples display revenue recognized ratably over a period of time. The third example displays revenue recognized all at once.
| Revenue Start Date | Revenue End Date | Distribution Method | Number of Revenue Transactions |
|---|---|---|---|
| 01/01/2018 | 12/31/2018 | Monthly | 12 |
| 01/01/2018 | 12/31/2018 | Daily | 12 |
| 01/01/2018 | 12/31/2018 | Full Recognition | 1 |
Let’s review a few ways to structure your revenue schedules based on your revenue recognition needs. In the first example, Salesforce Billing creates one revenue schedule for an entire service period. However, you can also create revenue schedules that run in parallel by associating several revenue recognition treatments with one order product. This is useful if you want to record revenue based on different terms or record it into multiple finance books.
In these examples, you’re recognizing revenue for a one-time order product with the following values. Your revenue distribution method defines the revenue terms by the order product start date and end date.
- Subscription Term: 12
- Start Date: 01/09/2018
- End Date: 01/09/2019
- Charge Type: One-Time
| Revenue Schedule Example | Revenue Distribution Method Setup | Resulting Revenue Schedule |
|---|---|---|
| I want a revenue schedule that tracks revenue distributed ratably by month for my order product’s entire service period. |
|
Your revenue schedule has a start date of 01/09/2018 and an end date of 01/08/2019. It contains 13 revenue transaction records — one for each month of 2018, and one for January 1 through January 8 of 2018. The January 2018 and January 2019 transactions are not for the full month, so Salesforce Billing prorates them accordingly. |
I want a revenue schedule that tracks revenue distributed ratably by month for my order product’s entire service period. Due to the potential for amendments and changes to the billing date, I want two revenue schedules.
The two schedules should record to different finance books. |
Since you need 2 revenue schedules, your revenue recognition rule should contain two treatments. Each treatment defines a different finance book and points to one of the following distribution methods.
|
Your first revenue schedule has a start date of 01/09/2018 and an end date of 01/08/2019. It contains 13 revenue transaction records — one for each month of 2018, and one for January 1 through January 8 of 2018. The January 2018 and January 2019 transactions aren’t for the full month, so Salesforce Billing prorates them accordingly. Your second revenue schedule has a start date of 01/09/2018 and an end date of 01/08/2019. However, you may have a different number of revenue transactions if your amendments created an invoice line with different a start date than the associated order product. |
- Revenue Transaction Balance Calculations for Invoice Lines and Order Products
When Salesforce Billing creates a revenue transaction for a revenue schedule, it uses a financial formula to determine the starting value for the Current Balance field. The formula results for the schedule's first revenue transaction can vary slightly based on whether the schedule recognizes revenue from an order product or invoice line. (Salesforce Billing Managed Package) - Order-Based Revenue Recognition Reporting
Generating revenue from order products allows high visibility into a business’s future revenue streams. When you create revenue schedules based on order products, you can forecast your future deferred revenue liability for the life of the specific performance obligation. Businesses using revenue forecasts for decision-making will have an up-front view of revenue forecasts for one-time and recurring products. (Salesforce Billing Managed Package) - Invoice-Based Revenue Recognition Reporting
Invoice line-level revenue recognition reporting is ideal for businesses who use Salesforce Billing for most of their revenue recognition reporting needs. Recognizing revenue on the invoice line provides a more streamlined view of the revenue stream in many edge cases, such as amendment or usage-pricing scenarios (Salesforce Billing Managed Package) - 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) - Revenue Schedule Fields
Revenue schedules contain several fields that let you review how much revenue has been distributed, and how much, if any, remains to be distributed. (Salesforce Billing Managed Package) - Create a Revenue Schedule Manually
Create a revenue schedule and enter its revenue transactions on your own. This is useful if you use a revenue recognition model that Salesforce Billing does not support. (Salesforce Billing Managed Package) - Overriding Revenue Schedule Dates
Salesforce Billing recommends automating the revenue schedule and creation process. However, you can override revenue schedule and transaction fields if you use a revenue recognition model that Salesforce Billing doesn’t support. (Salesforce Billing Managed Package) - Validating Revenue Recognition Treatments
The Validate Revenue Recognition Treatment button lets you review whether your revenue recognition process contains all the revenue schedule creation actions that your org requires. (Salesforce Billing Managed Package)
