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Rakesh Chhatani

# product quantity scheduling & product revenue realization scheduling

Hi

can you help me to understand what is the benefit of product quantity scheduling & product revenue realization scheduling

when this feature can be used,i.e in which scenario this feature helps us
Geraldine O'Connor
in a previous company I used revenue schedule as the company did not recognize all revenue from a sale at one time but over a 6 month period so we had to schedule the revenue over 6 periods.

See below from the help&training, better than my explanation:

Default Revenue Schedule Only–Your ASP company sells yearly contracts of product licenses at \$1200 per license per year. When a customer buys licenses, the licenses are all “delivered” at one time, but you recognize the revenue on a monthly basis. In this case, you would set a revenue schedule of Schedule Type=Divide, Installment Period=Monthly, and Number of Installments=12.

With this default revenue schedule, a salesperson sells 200 licenses at a unit price of \$1200 per license per year on an opportunity on March 15. The 200 licenses are all “delivered” on March 15. The total revenue for this product is the quantity of 200 multiplied by the unit price of \$1200 per year, for a total yearly revenue of \$240,000. The revenue schedule automatically divides the total revenue into monthly installments of \$20,000 on the 15th of every month for the next year.

Default Quantity Schedule Only–Your medical supplies company sells a box of tongue depressors for \$10 per box. You normally have yearly contracts with hospitals to deliver boxes every month. In this case, you would set a quantity schedule of Schedule Type=Repeat, Installment Period=Monthly, and Number of Installments=12.

With this default quantity schedule, a salesperson sells 1000 boxes on an opportunity on January 1. The quantity schedule automatically creates 12 monthly installments of 1000 boxes each, for a total quantity of 12,000 boxes. The total revenue from this opportunity is calculated using the unit price and the total quantity, so \$120,000 is booked on January 1.

Default Quantity and Revenue Schedules–Your manufacturing company sells widgets for \$10 each. You normally have yearly contracts to deliver widgets on a weekly basis, but your customers pay quarterly. In this case, you would set a quantity schedule of Schedule Type=Repeat, Installment Period=Weekly, and Number of Installments=52. You would also set a revenue schedule of Schedule Type=Divide, Installment Period=Quarterly, and Number of Installments=4.

With these default schedules, a salesperson sells 2000 widgets on an opportunity on January 1. The quantity schedule is applied first, and it schedules 2000 widgets to be delivered every week for a year, for a total quantity of 104,000. The total revenue is calculated using the unit price and the total quantity. The total revenue of \$1,040,000 is then divided into quarterly installments of \$260,000 each.