Revenue Recognition (was Accumulated)

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Hello,

I’m trying to figure out the best method for building revenue recognition formulas in Quantrix. Attached is a simple example in excel. I essentially want to calculate the monthly revenue recognized and deferred for a given invoice amount. I’d like to avoid duplicating the excel method in Quantrix.

The recognized revenue would be spread over the number of periods specified (12 months for an annual deal that is invoiced entirely in the first period). The monthly amount is then split between the current/next periods (to account for invoices that are booked towards the end of the month) with the percentages specified.

Thanks in advance!
-Bryan

Attachments

rev recog.zip
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Hello Chris,

This is a very elegant solution – just what I was looking for!!

I also noticed a few other techniques in your example that I can implement in my models.

Thanks for the quick response.

-Bryan

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Hi Bryan,

Attached is an example model with one possibility for managing revenue recognition. This example handles your 12-month deals.

I think you could manage multiple “recognition periods” by adding a third category to the Revenue Recognition matrix for this purpose, and then summing the revenue recognition period items to get to total recognized revenue. This would require some additional logic (for formulas 5 and 7) for each recognition period item.

Give this a go and let us know if you have any other questions.

Regards,

Chris Houle