<?xml version="1.0" encoding="utf-8"?>
<OptionList ID="/baanerp/ts/domains/ctm.rvmd" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Revenue Recognition method</Title>
	</Header>
	<ListValue ID="day.per.period"><Value>Number of days per period</Value>
		<Paragraph>The basis of revenue recognition per period is by the number of days per fiscal period. The number of days the contract is live in the fiscal period determines the amount that needs to be recognized for that fiscal period. The contract duration in days, based on the start date and end date of the contract, forms the basis of the contract price per day. The following formulas are used:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">amount to be recognized = (net contract amount / total days of contract) * number of days	contract or configuration belong to the fiscal	period</Paragraph>
		</Formula>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">net contract amount = (total contract sales amount) * (100 – p)%</Paragraph>
		</Formula>
		<Paragraph>Where 'p' is the percentage specified in the <GUIRef href="/baanerp/ts/ctm/tsctm2100m000#tsctm200.prov" role="formfield">Provision</GUIRef> field of the contract header. If 'p' is zero, the net contract amount is the current total contract sales amount.</Paragraph>
	</ListValue>
	<ListValue ID="cumu.days"><Value>Cumulative days</Value>
		<Paragraph>The number of days elapsed since the last recognition for the contract forms the basis to calculate the amount to be recognized. The creation date of the contract revenue is considered and the fiscal period to which the creation date belongs will be the fiscal period in which the amount will be recognized. The following formulas are used:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">amount to be recognized = ((net contract amount / total days of contract * cumulative number of days to date) – cumulative recognized revenue until date)</Paragraph>
		</Formula>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">net contract amount = (total contract sales amount) * (100 – p)%</Paragraph>
		</Formula>
		<Paragraph>Where 'p' is the percentage specified in the <GUIRef href="/baanerp/ts/ctm/tsctm2100m000#tsctm200.prov" role="formfield">Provision</GUIRef> field of the contract header.</Paragraph>
	</ListValue>
	<ListValue ID="erf.per.period"><Value>Earned Revenue Factor (Cost per Period)</Value>
		<Paragraph>When from <GUIRef href="/baanerp/ts/soc" role="module">Service Order Control</GUIRef>, <GUIRef href="/baanerp/ts/clm" role="module">Call Management</GUIRef> or <GUIRef href="/baanerp/ts/msc" role="module">Maintenance Sales Control</GUIRef>, the material, labor and other lines are costed, the cost incurred for the contract is transferred to <GUIRef href="/baanerp/ts/ctm" role="module">Contract Management</GUIRef> and stored against the fiscal period in which the costing occurred. The following formulas are used:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">ERF = total contract sales amount/ total estimated costs amount to be recognized = (cost incurred for the period * ERF)</Paragraph>
		</Formula>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">net contract amount = (total contract sales amount) * (100 – p)%</Paragraph>
		</Formula>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">net	configuration amount = (total configuration sales amount) * (100 – p)%</Paragraph>
		</Formula>
	</ListValue>
	<ListValue ID="erf.cumu.cost"><Value>Earned Revenue Factor (Cumulative Cost)</Value>
		<Paragraph>The cost incurred since the last recognition for the contract forms the basis to calculate the amount to be recognized. The creation date of the contract revenue is considered, and the fiscal period to which the creation date belongs, will be the fiscal period in which the amount will be recognized. The following formulas are used:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">ERF = total contract sales amount/ total estimated costs amount to be recognized = (lesser of A or B) – cumulative recognized revenue until date</Paragraph>
		</Formula>
		<Paragraph>A = cumulative cost incurred to date * ERF</Paragraph>
		<Paragraph>B = net contract amount</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">net contract amount = (total contract sales amount) * (100 – p)%</Paragraph>
		</Formula>
		<Paragraph>If recognition is at the configuration level:</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">ERF = contract configuration	sales amount / estimated costs for configuration amount to be recognized = (lesser of A or B) – cumulative recognized revenue until date</Paragraph>
		</Formula>
		<Paragraph>A = cumulative cost incurred to date * ERF</Paragraph>
		<Paragraph>B = net contract configuration amount</Paragraph>
		<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">net contract configuration amount = (total contract configuration sales amount) * (100 – p)%</Paragraph>
		</Formula>
	</ListValue>
	<ListValue ID="not.appl"><Value>Not Applicable</Value>
	</ListValue>
</OptionList>
