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How to record income for multi year opportunities

Ann Shackleton

We are selling Software-as-a-Service for mostly 1 year contracts, but some clients have multi year agreements, and pay annually.

We record the first year's payment in the "likely" field on the opportunity/RLI. The service end date is how long the agreement is for (e.g. 3 years) So we need to record the payments for years two and three somewhere. 

We are using Sell Advanced (on cloud), Opportunities with Revenue Line Items. 

Can anyone share good practice on how best to record this information in the easiest way possible for users? Thank you!

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    For predicting/recognising Revenue per year for a multi-year RLIs/Opportunities, one option would be to  create a new module e.g. "Projected Revenue" which gets generated automatically for each year based on the RLI Start and End dates. The initial value for each year would be RLI amount divided by number of years. The user is free to adjust  the amount initially. However, once the amount has been confirmed for a year (either by the backend system or based on the date), then the record/amount becomes read-only in the Projected Revenue, thus locking the actual revenue for that year.

    Some customers have implemented this solution to recognise revenue for each month within the RLI start and end dates.

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    For predicting/recognising Revenue per year for a multi-year RLIs/Opportunities, one option would be to  create a new module e.g. "Projected Revenue" which gets generated automatically for each year based on the RLI Start and End dates. The initial value for each year would be RLI amount divided by number of years. The user is free to adjust  the amount initially. However, once the amount has been confirmed for a year (either by the backend system or based on the date), then the record/amount becomes read-only in the Projected Revenue, thus locking the actual revenue for that year.

    Some customers have implemented this solution to recognise revenue for each month within the RLI start and end dates.

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