Creating a Recognition Treatment
If you plan to have many recognition treatments, you should develop a naming convention for them. Recognition treatment names appear in a dropdown list on recognition treatment rules. You can create the recognition treatments you need in advance and add new recognition treatments as you define your recognition treatment rules.
To create a recognition treatment record:
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Go to Setup > Accounting > Revenue > Recognition Treatments > New.
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In the Name field, enter a unique name for the recognition treatment.
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In the Description field, enter a longer description to help identify the recognition treatment.
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Leave the Inactive box clear unless you want to prevent the treatment from being assigned to a recognition treatment rule.
When you check the Inactive box, the recognition treatment does not appear in Recognition Treatment list for recognition treatment rules.
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Set the attribute values you want for the recognition treatment in the remaining fields.
You can set values for the following attributes. If you leave an attribute value blank, the recognition treatment does not affect that attribute value on the revenue element. The attribute retains the value it had before the recognition treatment was applied.
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Create Revenue Plans On – The available values for this attribute include Revenue Arrangement Creation and Billing. Other values are available depending on the features enabled in your account.
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Revenue Recognition Rule – The available values for this attribute depend on the revenue recognition rules you have created for your account.
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Rev Rec Forecast Rule – The same values are available for this attribute as for Revenue Recognition Rule. The values you select for these attributes do not need to match.
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Allocation Type – The available values for this attribute are Normal, Exclude, and Software. This field appears only when the Advanced Revenue Management (Revenue Allocation) feature is enabled. For information about enabling this feature, see Enabling the Advanced Revenue Management (Revenue Allocation) Feature.
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Revenue Allocation Group – The available values for this attribute are configured during setup to meet the specific needs of your company. Revenue allocation group is used in GroupSum functions in fair value formulas. This field appears only when the Advanced Revenue Management (Revenue Allocation) feature is enabled.
For more information about these attributes, see Item Configuration for Advanced Revenue Management (Essentials) and (Revenue Allocation), Revenue Recognition/Amortization Subtab
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Click Save.