By utilizing KORE’s Revenue Recognition functionality, an organization will have the ability to report revenue figures within specific Deal Seasons and Fiscal Years. This allows organizations to forecast quarterly revenue reporting, further understand monthly sales trends, and specify different revenue reporting rules for each inventory item.
If your organization would like to utilize the Revenue Reporting capabilities, please let your KORE Success Manager to discuss turning on this feature. When available the functionality will be added to your Inventory Import/Export file, and will be available within the ‘Seasonal Settings’ for each inventory item. Please note: not all KORE reports utilize the Revenue Recognition capabilities, so consult your Success Manager to better understand how to access this information.
The following is the order of priority by which revenue will be recognized by KORE ProSports. Admins can select a primary Revenue Recognition Mode for each Inventory Item. If KORE is unable to recognize the revenue based on the primary Revenue Recognition Mode for that Inventory Item, the system will go through the order of priority until the revenue can be recognized. If Options 1 or 2 are used, it will never fall back to the other Revenue Recognition Modes.
1) Contract Start Month
This will spread revenue evenly across all 12 months of an inventory item. If the first year of the Deal is under 12 months, the revenue will be pro-rated for each month during the first year.
2) Monthly Even Distribution
This mode relies on the start and end date that is entered on the inventory item’s settings. It will spread the revenue evenly across all months within this date range. Should the start or end contract date be within this date range, it will utilize the start or end contract month and reduce the spread of the monthly revenue. Please note, this mode only references months, not days. Therefore, if a Deal runs from 06/01/2017 to 08/01/2017, the revenue will actually allocate over three months (June, July and August) even though there is only one day the Deal runs in the month of August.
3) Time of Sale
This mode explicitly puts all revenue in the month of the Deal Sheets contracted on date. All revenue will be allocated to one month.
4) Fulfillment Amounts
This mode recognizes revenue based on the event allocations of a Deal Line in the Service Console. Once a Deal Lines has allocations it sums the number of allocations per month and distributes the revenue over the percentages of allocations per month. Revenue will only be recognized for Deal Lines with 100% of their allocations.
5) Monthly Percentages
This mode relies on the monthly breakout being populated on the inventory item’s settings. Then, this mode will spread the respective revenue of Deal Line to these months based on that percentage. The monthly breakout must add up to 100% for this mode to be used. Additionally, this mode ignores the start and end contract date of the Deal Sheet.
6) Event List
Revenue is distributed proportionality across the months of the contract based on all the events that are within Event Lists associated with the inventory item. This mode ignores any Deal Line allocations and executions associated with the inventory item.
7) Date Range
Revenue is distributed evenly across every day within contract date range. If desired, admins can indicate limited date ranges that should be used to recognize revenue for inventory items by entering the start and end date on Seasonal Settings for a inventory item. For example, a 3-month partnership lasting 06/01/2017 to 09/01/2017 spans 93 days. The inventory items revenue would be spread evenly across these 93 days.