Detailed Examples of Deferred Schedule Recognition

12-Month Membership Recognized Quarterly

Let's say you created a frequency record with the following configuration:

Then, you set a membership deferred revenue method with a Recognition of Frequency and related it to the Quarterly frequency record:

Lastly, you related a membership product to the Quarterly Membership deferred revenue method:

When an order for this membership product is made, one of its transactions will be tied appropriately to a deferred schedule record that honors both the membership term and the cadence of the Quarterly frequency.

More specifically, let's say the order was placed on January 9, 2019 for a twelve-month membership starting on January 1 of the same year, the deferred schedule will have the following attributes immediately after the order was made:

1. Start Date matches the start date of your membership.

2. Next Recognition Date matches the start date of your membership.

3. Deferred Amount is the order total.

4. Recognized Amount is $0.

5. Deferred Balance is the order total.

6. Deferred Term is 4.

7. Remaining Recognition Count is 4.

8. Recognition Health is green (healthy).

9. The Deferred Forecast Detail section:

   1. has 4 rows - one for each quarterly recognition, starting on the start date of the purchased membership.

   2. aligns with the Quarterly frequency; each recognition is 3 months apart.

The next time the nightly deferred revenue recognition job runs, the deferred schedule changes as follows:

1. Next Recognition Date is 3 months after the start date.

2. Recognized Amount is the same as the Recognition Amount field: the amount for a single recognition.

3. Deferred Balance is decremented by the Recognition Amount.

4. Remaining Recognition Count is 3.

5. Recognition Health is still green (healthy).

6. The first row in the Deferred Forecast Detail section is no longer a forecast.

7. There are 2 transactions in the Recognized Transactions related list: 1 debit and 1 credit.

At this point, the deferred schedule has 3 remaining recognitions. Fast forward to the day the final recognition is processed, and the deferred schedule changes as follows:

1. Next Recognition Date is the same date as the final recognition (found in the Deferred Forecast Detail section).

2. Recognized Amount is the same as the Deferred Amount.

3. Deferred Balance is $0.

4. Remaining Recognition Count is 0.

5. Recognition Health is still green (healthy).

6. All rows in the Deferred Forecast Detail section are no longer a forecast.

7. There are 8 transactions in the Recognized Transactions related list: 4 debit and 4 credit.

Subscription Recognized Based on 3-Issue Publication

• Here, you have a Nimblelife Magazine publication record with the following configuration and related issues:

• Nimblelife Magazine Publication should be linked to the Nimblelife Magazine subscription product.

• Then, you have a created Nimblelife Magazine subscription deferred revenue method with the following configuration:

• Link Nimblelife Magazine deferred revenue method to the created Nimble Magazine Subscription product:
  

Let's say you placed an order on January 9, 2019 for a subscription starting on January 1, 2019. Immediately after making the order, on the deferred schedule record:

1. Start Date matches the date of the first issue: 3/15/2019.

2. Next Recognition Date matches the date of the first issue: 3/15/2019.

3. Deferred Amount is the Order Total.

4. Recognized Amount is $0.

5. Deferred Balance is the Order Total.

6. Deferred Term is 3.

7. Remaining Recognition Count is 3.

8. Recognition Health is Green.

9. Deferred Forecast Detail has 3 rows - one for each issue recognition, starting on the date of the first issue.

10. Deferred Forecast Detail aligns with the issue dates you configured.

The next time the nightly deferred revenue recognition job runs, the deferred schedule changes as follows:

1. Next Recognition Date is the date of the second issue: 6/15/2019.

2. Recognized Amount is the same as the Recognition Amount field - the amount for 1 recognition.

3. Deferred Balance is decremented by the Recognition Amount.

4. Remaining Recognition Count is 2.

5. Recognition Health is Green.

6. The first row in the Deferred Forecast Detail is not a forecast.

7. There are 2 transactions in the Recognized Transactions related list: 1 debit, and 1 credit.

At this point, the deferred schedule has 2 remaining recognitions. Fast forward to after the final recognition is processed (after the early morning of 10/15/2019), and the deferred schedule changes as follows:

1. Next Recognition Date is the same date as the date of the last issue: 10/15/2019.

2. Recognized Amount is the same as the Deferred Amount.

3. Deferred Balance is $0.

4. Remaining Recognition Count is 0.

5. Recognition Health is Green.

6. All rows in the Deferred Forecast Detail is not a forecast.

7. There are 6 transactions in the Recognized Transactions related list: 3 debit, 3 credit.