Contract Line Amount Changes – Recurring Lines

You can increase or decrease the amount to be billed and recognized for revenue on a recurring contract line. Recurring contract lines are unique in that they always use a revenue recognition method of Billing Manages Revenue and therefore always use a single amount for both billing and revenue recognition. Billing and revenue are never separated on recurring contract lines. The Billing Allocation page and Amendment Billing Allocation page provide you a field to enter the value for billing/revenue on your recurring contract lines. This amount should be included in Total Billing and Total Revenue on the contract and include all amounts expected to be billed, current and future. Note that the amounts sent to Billing and to General Ledger for revenue recognition come from the Order Management module or Enterprise Pricer when billing is initiated. The Recurring Amount entered on the contract line is not used to create billing and revenue rather it should be used to help arrive at a total contract price for billing and revenue. There are no edits or controls between the recurring amount entered on the Billing Allocation page or Amendment Billing Allocation page and the billing plan. However, it is recommended that the Recurring Amount on the contract line reflect both current amounts and future amounts expected to be billed and recognized for revenue. General step for changing a recurring contract line amount include modifying the contract line recurring amount as part of the amendment.

Note:

Recurring lines can be added to the contract only if the contract does not separate billing and revenue. The recurring amount displayed on the revenue pages will always equal those on the billing pages.