Watch the Step-by-Step Video
For a visual guide, watch this video:
Daily versus monthly revenue recognition
There are two (2) Revenue Basis in TrueRev
After creating your contract, setting the billing schedule for each term, and associating the invoices, navigate to the Revenue tab.
By default, the Revenue basis is set to "Daily." Monthly revenue will be calculated by dividing the total annual revenue by the number of days in each month. This means your revenue will vary each month based on the number of days. In leap years, there are 366 days; or
Toggle the button to select "Monthly with Proration". Revenue for full months is calculated by dividing the total annual revenue by 12. For a prorated month, revenue is calculated by dividing the total annual revenue by the number of days in the year, then multiplying by the number of prorated days. This means your monthly revenue will be the same for all full months.
Recognize the products to add them to the Revenue schedule, click the “+Add row to revenue schedule” button.
Add the product by clicking the drop-down arrow and selecting the products to be recognized one-by-one.
Set up how you'd like to recognize revenue for this contract by product by toggling the “Ratable” or “All-at-Once” options.
Change or update the term start and end dates. You can click “Fill start date” and “Fill end date” to set them the same as the term dates. Then, click “Save”.