Revenue Contract Versions

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Revenue Contract Versions

To help you track the history of changes during the Initial Contract Timeline and the contract modifications during the Revision Timelines, RevPro creates versions of the revenue contract. Each version of the revenue contract is a snapshot of the revenue contract.

Initial Contract Timeline

Within the Initial Contract Timeline, RevPro creates a version only when the following two conditions are both met:

  • There is a change to the contract.

  • Revenue has been recognized and posted on the contract either within the same period or across fiscal periods.

Although a new version of the contract might be created, RevPro continues to show the allocation treatment for the contract as Initial in the RevPro Workbench.

Revision Timeline

Within a Revision Timeline, if revenue has been recognized on the contract, RevPro always creates a version for the first contract modification that occurs.

RevPro also creates versions within a Revision Timeline in either of the following circumstances:

  • There are multiple contract modifications both within and across fiscal periods.
  • There are multiple contract modifications that happen at the same time in one fiscal period that will cause different allocations methods to be applied.
    For example, there is a contract modification to an existing performance obligation that is treated retrospectively as a cumulative catch-up. Then, new transaction lines that represent new distinct performance obligations are added to the revenue contract. RevPro will create a version for the retrospective change and then another version for the prospective addition of performance obligations.

Examples of Revenue Contract Versioning

Example 1: The settings about Contract Modification Timeline in RevPro are as follows:

Contract Timeline

Duration Type

Duration

Initial Contract Timeline

RC Creation Period

0

Revision Timeline

RC Modified Period

N/A

Revenue contracts are created in RevPro in January. The Initial Contract Timeline is January and the first Revision Timeline starts from February. The following table shows versioning of five different revenue contracts.

contract_version_1.png

Example 2: The settings about Contract Modification Timeline in RevPro are as follows:

Contract Timeline

Duration Type

Duration

Initial Contract Timeline

RC Creation Qtr

0

Revision Timeline

RC Modified Period

N/A

Revenue contracts are created in RevPro in January. The Initial Contract Timeline is Q1 of the year and the first Revision Timeline starts from April. The following table shows versioning of five different revenue contracts.

contract_version_2.png

 

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