Revenue Recognition Rules in ARM

1. Revenue Recognition Rules 

These rules need to be defined and applied to item records before the items are used in transactions. 

The parameters can be defined for a revenue recognition rule includes; 

1. Recognition method / How revenue is recognized per period 
2. Source of the revenue recognition plan amount 
3. Trigger for plan start and end dates 
4. How the plan is modified should the end date change 
5. Time period over which revenue is recognized (if applicable) 
6. Initial amount to be recognized (if applicable) 
7. Offset to delay the start of the recognition (if applicable) 

Default Standard rule will be automatically created with ARM 

Default Percent complete rule will be created if Projects feature is on. 

 

 

 

 

 

Amount source determines the trigger to create revenue recognition plans .

 

Revenue arrangement as triggering event- Event percent based on the amount .

Item fulfillment as triggering event- Event percent based on quantity.