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Administrator Guide
Last Updated: 2023-06-23
Create Revenue Recognition Schedules for Customer Contracts

Create Revenue Recognition Schedules for Customer Contracts

  • Create a customer contract with at least 1 contract line enabled for accrued or deferred revenue.
  • Security:
    Process: Revenue Schedule - Core
     domain in the Customer Contracts and Project Billing functional areas.
You can create a revenue recognition schedule for 1 or more lines on your customer contracts. All lines that you include in a schedule must use the same revenue recognition method. You can also associate the revenue recognition schedule with dates, project tasks, and billing-related milestones. Milestones must be complete for revenue recognition to occur on an installment.
  1. Access the
    Create Revenue Recognition Schedule for Customer Contract
     task.
  2. As you complete the task, consider:
    Option Description
    Contract Line Company
    To create a revenue recognition schedule for an intercompany contract, select a contract line company that's different from the contract company. Revenue recognition schedules tie to the line company, enabling you to recognize accrued or deferred revenue to the same company.
    Schedule Type
    To improve reporting capabilities, select a schedule type enabled for revenue recognition. When you select
    Usage-Based Subscription
    , Workday restricts the date range and limits the selection for the
    Revenue Recognition Method
    . You can add the revenue start and end dates on the
    Record Usage-Based Transactions
     task.
    Schedule On Hold
    Select to place the revenue recognition schedule on hold when you need to take action before you create accounting. When you release the hold, installments become available for revenue recognition accounting the next time you run the task.
    Hold Reasons
    Select a hold reason that you configured on the
    Maintain Customer Contract Schedule Hold Reasons
     task.
    Displays when you select the
    Schedule On Hold
     check box.
    Milestones
    Displays all tasks from all phase levels for the billable project.
    Default Currency Rate
    Select 1 of these options for Workday to use as the default currency conversion rate when you create new revenue recognition schedules with foreign currency:
    • Contract Effective Date
       - Uses the currency conversion rate for the contract effective date.
    • Revenue Recognition Installment Date
       - Uses the installment date on the revenue recognition schedule to determine the currency exchange rate. When there isn't a rate for the installment date, Workday uses the rate for the most recent date when you generate revenue recognition installments and accounting.
    • Schedule Override Rate
       - Uses the override currency conversion rate you enter in the
      Schedule Override Rate
       field.
    When you:
    • Don't select an option in the prompt, Workday uses the revenue recognition default currency conversion rate that you select on the
      Edit Tenant Setup - Financials
       task.
    • Select an option in the prompt that's different from the option you select in the
      Revenue Recognition Default Currency Rate
       prompt on the
      Edit Tenant Setup - Financials
       task, Workday uses the selection on the revenue recognition schedule to determine the currency conversion rate.
    Displays on new revenue recognition schedules with foreign currency.
    Schedule Override Rate
    Enter the override currency conversion rate to use for all installment lines on the revenue recognition schedule.
    Displays on new revenue recognition schedules with foreign currency when you select
    Schedule Override Rate
     from the
    Default Currency Rate
     prompt.
    Create Reversal
    Select to create a reversal journal when you generate accounting for revenue installments. This option is only available for
    Project Time and Expense
     customer contract lines.
    Displays when you select a
    Revenue Recognition Method
     of
    Transaction
    .
    Independent Revenue Processing
    Select to:
    • Generate revenue installments for transactions in an
      Awaiting Review
      ,
      On Hold
      , or
      Ready to Bill
       billing status.
    • Reverse revenue accounting when you've already recognized revenue for transactions in a
      Do Not Bill
       billing status.
    Displays when you select a
    Revenue Recognition Method
     of
    Transaction
    .
    Automatically Regenerate Installments
    Select to generate new installments when you modify the contract line amount on the customer contract.
    Displays when you select:
    • A
      Schedule Type
       enabled for revenue recognition.
    • A
      Revenue Recognition Method
       of
      Defined Installment
      ,
      Number of Days
      , or
      Spread Even
      .
    Automatically Submit Schedule via Contract Amendment
    Select to submit new installments for approval. The installments won't update when you have contract amendments on a business process.
    Displays when you select:
    • A
      Schedule Type
       enabled for revenue recognition.
    • A
      Revenue Recognition Method
       of
      Defined Installment
      ,
      Number of Days
      , or
      Spread Even
      .
    • The
      Automatically Regenerate Installments
       check box.
    Generate Cumulative Catch-up Installments
    Select to generate adjustment revenue installments when you modify the customer contract term or amounts.
    Displays when you select:
    • A
      Schedule Type
       enabled for revenue recognition.
    • A
      Revenue Recognition Method
       of
      Defined Installment
      ,
      Number of Days
      , or
      Spread Even
      .
  3. Select the lines that you want to add to the revenue recognition schedule.
  4. Click
    Save and Continue
     to view the draft schedule.
  5. As you complete the revenue recognition schedule, consider:
    Option Description
    Manage Lines
    Lines can span multiple contracts but must match the schedule company, customer, and currency.
    Displays only deferred revenue lines.
    Define Installment Amounts
    To define amounts manually, enter the defined installment amounts for each customer contract line.
    To prorate the amounts for contracts that begin with a start date after the first of the month, select a
    From Date
     and
    To Date
    . Workday calculates the first and last installments based on those dates.
    Customize Installments
    When you customize installments and save your changes, Workday automatically updates the
    Revenue Recognition Method
     to
    Custom
    .
    Override Currency Rates
    You can override the exchange rate or the base currency amount on installments. Workday displays the
    Maintain Revenue Recognition Schedule Currency Rates
     task with only the contract lines that you can override.
    Displays when you generate installments on a revenue recognition schedule with foreign currency.
  6. (Optional) To add supporting documentation, select
    Revenue Recognition Schedule
    Manage Attachments
     from the related actions menu of the revenue recognition schedule.
  • Report on the revenue recognition schedule or on installment hold reasons.
  • Create revenue recognition accounting.