Using VSOE with Markup Items
Markup items can affect vendor-specific objective evidence (VSOE) allocation when they are added to a transaction.
Use non-posting markup items to ensure that the net amount of each line and the transaction as a whole is amortized correctly.
When a markup item is included on a transaction, it affects the sales amount of an item, and may also affect the amount of revenue recognized. When a markup item is applied to a line item, it increases the invoice price of the item, which can increase the VSOE allocation amount of items in the bundle.
This type of line item markup affects the VSOE price of items only if the line-item is used to calculate the VSOE price using the residual method. For more information on the residual method, read Using the Residual Method of Revenue Recognition.
Related Topics
- Using the VSOE Feature
- Recognizing Revenue for VSOE Bundles
- Allocating VSOE Revenue for a Bundle
- Updating VSOE Allocations and Delivery Status on a Transaction
- Using VSOE on Sales Orders and Invoices
- Updating the VSOE Delivery Status on Items
- Billing a VSOE Transaction
- Using VSOE with Discount Items
- Resolving Undetermined VSOE Allocation
- Posting VSOE Revenue to the General Ledger
- Using the Residual Method of Revenue Recognition
- VSOE Revenue Recognition Examples