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Question

Revenue Recognition calculation logic

  • February 10, 2026
  • 2 replies
  • 34 views
R
Sidekick (Partner)
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  • RajK
  • Sidekick (Partner)

Hello All,

I have a customer requirement, where they want to run a periodical capitalization and revenue recognition. However, they do not want to reverse the revenue recognition postings on next period rather they want to keep calculating and posting the revenue to be recignized on the periodical basis.

Ultimately, they are looking for the result fo monthly report and yearly report for revenue recognized for a long term projects which has ifecycle of minimum 3 years?

I know IFS standard functionality, will always reverse the previous period voucher and calculate again cumulative amount to be recongnized. but did anyone has similar kind of requirement and solution suggestion for this?

Thanks

Raj

2 replies

A
Hero (Customer)
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  • Adam Bereda
  • Hero (Customer)
  • February 10, 2026

Perhaps I do not understand the requirement, but in principle rollback of previous recognition and calculation of next one with full amount gives same result as incremental adjustment.  

Regards, Adam
    R
    Sidekick (Partner)
    Forum|alt.badge.img+6
    • RajK
    • Author
    • Sidekick (Partner)
    • February 20, 2026

    Hi Adam, thanks for your response. Indeed my question was not a valid one. I tested and found that every period based on the actula results, we recognize cost and revenue as cumulative balance with the reversal of previous period recognition voucher provides the net result of the period. Same logic continues if the life cycle of the project beyond one financial year.

    Thanks again for your explanation.

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