<aside> 👉 By the end of this article, you will know how to set your recognition schedules in our billing settings so that your Revenue Recognition report represents what your business needs.
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There are two settings available to you in Subscript Billing for revrec schedules:
Let’s take an example deal: $12,000 from January 16, 2021 to January 15, 2022 (inclusive).
Daily with Proration
In this method, we take $12,000/365 = $32.8767 as the daily recognition amount.
Then, each month gets an amount equal to the number of days the deal is live.
16 days in January 2021: $526.03
28 days in February 2021: $920.55
…
15 days in January 2022: $493.15
Monthly with Proration:
In this method, we first determine a monthly amount → $12,000 / 12 = $1,000