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Revenue Recognition
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Last update: December 1, 2025
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FOR EDUCATIONAL PURPOSES ONLY
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Notes about revenue calculations
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-Assumes all revenue recognition is recognized straight-line with the invoice start and end dates (no allocation of value between SKUs)
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-Assumes revenue always starts on the service start date per the invoice/contract. But if a contract is signed after the start date then something else might need to be done
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Adding Contracts
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-Add additional contracts/invoices in the highlighted section and add new rows as needed
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-If you have multiple invoices for one contract then you can add the same contract details for each unique invoice to be created for the contract
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Checks0
*If this is zero then there are no issues. Otherwise review the "checks" on the "Revenue Waterfall" tab
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