Configure Revenue Schedules to Use VSOE
- Within your bundle, identify all the component goods and services where you want to recognize revenue.
- Use VSOE to determine the standalone selling price of each of good and service.
- Use the standalone selling price for each good or service to determine the portion of the bundle’s overall revenue attributable to that good or service.For example, let’s say you have a bundle with 3 component services. The sum of the standalone selling price of all component services is $10,000. Your first service has a selling price of $5,000. Therefore, it represents 50 percent of your bundle’s revenue.
- Create a revenue recognition rule that contains a revenue treatment for each component that you want to track.Each revenue treatment should contain at least the following fields and values.NameActive: SelectedType: PercentagePercentage: Enter the percentage you calculated in step 3
- Name
- Active: Selected
- Type: Percentage
- Percentage: Enter the percentage you calculated in step 3
- Make the revenue recognition rule active and assign it to your bundle product.When you invoice this bundle product, Salesforce Billing creates one revenue schedule for each bundle component. Remember, Salesforce Billing uses the following formula to calculate revenue for each revenue schedule.Total revenue amount = (Percentage from revenue treatment) *(Total order product amount for the bundle)