A company signs a four-year contract for an IT support project. The manager wants to know how the revenue amounts will be allocated across the four-year period. You need to implement a revenue…

The correct answer is B. 48 months. A revenue schedule must be created for each occurrence that revenue can be deferred for. For example, if your organization offers support over six-month, 12- month, 18-month, and 24-month periods, you must create a revenue schedule for each period…

Implement accounts receivable, credit, collections, and subscription billing

Question

A company signs a four-year contract for an IT support project. The manager wants to know how the revenue amounts will be allocated across the four-year period. You need to implement a revenue schedule to determine the revenue amounts for each month. Which setup should you use?

Options

A60 months
B48 months
C4 years
D4 months

How the community answered

(30 responses)

A
7% (2)
B
87% (26)
C
3% (1)
D
3% (1)

Explanation

A revenue schedule must be created for each occurrence that revenue can be deferred for. For example, if your organization offers support over six-month, 12- month, 18-month, and 24-month periods, you must create a revenue schedule for each period. https://docs.microsoft.com/en-us/dynamics365/finance/accounts-receivable/revenue-recognition-

Topics

#revenue schedule#subscription billing#contract terms#revenue recognition

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