Risk Amounts

Risk amounts represent the amount of revenue in excess of the funded amount that is to be recognized. In some situations, the customer provides you with a verbal agreement to provide more funds. To be able to recognize the revenue for the funding before you actually receive it, you enter risk amounts. You enter risk amounts at the funding level. When you recognize revenue, the system includes the risk amounts when calculating whether or not you have exceeded contract limits.

See Risk Amounts for Revenue Recognition.