Periodic and Custom Periodic

Both types are set up in the same way. Specify the period type and the point in the period when revenue is to be recognized. Supported Period Types displays the supported period types.


Period Type	Description
Monthly	These standard calendar periods correspond to the 12 months of the year.
GL Period	This period type refers to the GL Periods that have been set up in the system. These periods can be identical to the monthly periods or they can be configured differently. For example, some businesses prefer to have 13 periods in a year, with each period precisely four weeks in length.
Quarterly	There are four periods in a year, each of three months in length.
Bi-annually	There are two periods in a year, each of six months in length.
Annually	There is a single period for the whole year.

Also specify when the revenue deferred for a period can be recognized. Recognition Options displays the options for recognizing this revenue.


Recognition Point	Description
Start	The revenue is recognized at the start of the period. When the revenue contract maintenance program creates the periods for a performance obligation, the recognition date is set to the first day of the period.
End	The revenue is recognized at the end of the period. When the revenue contract maintenance program creates the periods for a performance obligation, the recognition date is set to the last day of the period.
Offset	The revenue is recognized after a set number of days from the start of the period. For the revenue recognition rule being created, you must enter the number of days to offset the recognition point from the start of the period.

Periodic and custom periodic types are set up in the same way, with the same set of parameters controlling how each revenue recognition rule created behaves. The difference between the two types is the level of control allowed in the revenue contract maintenance program in adjusting the periods created for a performance obligation.

Periodic type rules allow for little modification. You must accept the number of periods generated for the performance obligation. However, you can vary the amount of revenue recognized in each period. By default, the revenue is split evenly across the periods.

Custom periodic type rules offer more flexibility. You can change the revenue split of the periods, and you can also delete or add periods to the period set generated for the performance obligation.