<?xml version="1.0" encoding="utf-8"?>
<OptionList ID="/baanerp/ts/domains/ctm.rvmd" xml:lang="en">
   <Header>
      <Title>Revenue Recognition method</Title>
   </Header>
   <List>
      <ListItemHead>Number of days per period</ListItemHead>
      <ListItem ID="day.per.period">
         <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 space-and-orientation="indented-estimated">
            <Paragraph>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 space-and-orientation="indented-estimated">
            <Paragraph>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="manual">Provision</GUIRef> field of the contract header. If 'p' is
		zero, the net contract amount is the current total contract sales amount.</Paragraph>
      </ListItem>
      <ListItemHead>Cumulative days</ListItemHead>
      <ListItem ID="cumu.days">
         <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 space-and-orientation="indented-estimated">
            <Paragraph>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 space-and-orientation="indented-estimated">
            <Paragraph>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="manual">Provision</GUIRef> field of the contract header.</Paragraph>
      </ListItem>
      <ListItemHead>Earned Revenue Factor (Cost per Period)</ListItemHead>
      <ListItem ID="erf.per.period">
         <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 space-and-orientation="indented-estimated">
            <Paragraph>ERF = total contract sales amount/ total estimated costs amount to be recognized = (cost incurred for the period * ERF)</Paragraph>
         </Formula>
         <Formula space-and-orientation="indented-estimated">
            <Paragraph>net contract amount = (total contract sales amount) * (100 – p)%</Paragraph>
         </Formula>
         <Formula space-and-orientation="indented-estimated">
            <Paragraph>net	configuration amount = (total configuration sales amount) * (100 – p)%</Paragraph>
         </Formula>
      </ListItem>
      <ListItemHead>Earned Revenue Factor (Cumulative Cost)</ListItemHead>
      <ListItem ID="erf.cumu.cost">
         <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 space-and-orientation="indented-estimated">
            <Paragraph>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 space-and-orientation="indented-estimated">
            <Paragraph>net contract amount = (total contract sales amount) * (100 – p)%</Paragraph>
         </Formula>
         <Paragraph>If recognition is at the configuration level:</Paragraph>
         <Formula space-and-orientation="indented-estimated">
            <Paragraph>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 space-and-orientation="indented-estimated">
            <Paragraph>net contract configuration amount = (total contract configuration sales amount) * (100 – p)%</Paragraph>
         </Formula>
      </ListItem>
      <ListItemHead>Not Applicable</ListItemHead>
      <ListItem ID="not.appl"/>
   </List>
</OptionList>