Rev.

recognition

Value A B D E F

Text Standard revenue recognition Time-related revenue recognition Service-related revenue recognition Billing-related, time-related revenue recognition Billing-related, service-related revenue recognition (IS-M) Credit/Debit Memos with reference to predecessor

Revenue Dist.

Value A B C

Text Total Value: Linear and Correction Value Undistributed Total Val.: Linear and Correction Value Linearly Distributed Total Value: Billing-Plan-Reld and Corr. Value Undistributed Total Val.: Bill.Plan-Reld and Corr. Val. Linearly Distribtd

As-Is Item category ZPAA ZPEA ZPEQ ZPEV ZPMY ZPQT ZPUM ZPUF ZPDD Relev.for Bill.Rev. recognition I A I A I A I A I A I A I A I A I A

Proposed Item category ZPAA ZPEA ZPEQ ZPEV ZPMY ZPQT ZPUM ZPUF ZPDD Relev.for Bill.Rev. recognition I A I A I A I A I A I A I A I A I A

Acc. period start

Value A B

Text Not relevant Proposal based on contract start date Proposal based on billing plan start date

Revenue Event

Value A B X Y Z

Text Not Event-Related Incoming Invoice Acceptance Date Customer-Specific Event: X Customer-Specific Event: Y Customer-Specific Event: Z

Acc. period start B B B B B B B A B

Revenue Dist.Revenue Event A

B B B B A B

Acc. period start B B B B B B B A B

Revenue Dist.Revenue Event B B B B B B B A B

S.No

Descriptio 3 year Contract with Annual Billing ZPAA 1 Billing Plan same as contract Date 3 year Contract with Annual Billing ZPAA 2 Billing Plan only 2 years

Results 36 months in Rev Rec Table

24 Months in rev rec table

3 year Contract with Annual Billing ZPUF 3 Billing Plan same as contract Date 3 year Contract with Annual Billing ZPUF 4 Billing Plan only 2 years

36 months in Rev Rec Table

36 months in Rev Rec Table

Conclusion :

We should use "B" but not A . Check with Barb Whitney if she is okay with it

Document 42000025

42000026

42000027

42000028

S.No

Descriptio 3 year Contract with Annual Billing ZPAA, Invoiced For 1st Year 1 Price Changed After 7 months -- 300% increase

3 year Contract with Annual Billing ZPEA, Invoiced For 1st Year 2 Price Changed After 7 months -- 300% increase 3 year Contract with Annual Billing ZPQT, Invoiced For 3 quarters 3 Price Changed After 7 months -- 300% increase

We should use "B" . Price Increase is only relevant for future billing Conclusion : .

Results Document 50$ Recognized for 7 months and Price increased from 50 to 200 , So now the new monthly value is 170 = (5400 - 300 ) = 5100 / (24 + 6) = 170 42000029 50$ Recognized for 7 months and Price increased from 50 to 200 , So now the new monthly value is 125 = (3000/24 ) = 125 ; System books a credit for last 7 months 7*75 = 525. This will hit unbilled rec. till we invoice the 2nd year 42000030 50 $ recognized for 7 months , Price increased 300% , System will still recognize 50 for open months and then it changes 200 for unbilled time. 42000031

Since we have user exit to check for acceptance date and contract status , we don't need to use this functionality