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Administrator Guide
Last Updated: 2023-06-23
Steps: Create Multiple-Element Revenue Allocation

Steps: Create Multiple-Element Revenue Allocation

  • Create sales items.
  • Review setup considerations for multiple-element revenue allocation.
You can allocate revenue on customer contracts that have multiple-element arrangements. You can either:
  • Manually allocate revenue for each sales item on the customer contract line.
  • Enable Workday to automatically create multiple-element revenue allocation in compliance with recognition standards.
  3. To:
    • Manually allocate revenue for a single customer contract, enter allocation amounts in the
      Revenue Override Amount
       field. When you manually allocate revenue, you can proceed to the
      Next Steps
       section.
    • Set up automatic revenue allocation for a single customer contract, select the
      Multiple-Element Revenue Allocation
       check box and select an option from the
      Fair Value Price List
       prompt. Workday populates the fair values on the customer contract line.
    • Set up automatic revenue allocation for multiple customer contracts, select a
      Contract Type
       enabled for linked contracts and select the child customer contracts from the
      Linked Customer Contracts
       prompt.
  4. (Optional) To run multiple-element revenue allocation for:
    • A single customer contract, select
      Customer Contract
      Create Multiple-Element Revenue Allocation
       from the related actions menu of the approved customer contract.
    • Linked customer contracts, select
      Customer Contract
      Create Multiple-Element Revenue Allocation
       from the related actions menu of the parent linked contract.
    Security:
    Process: Revenue - Allocations
     domain in the Customer Contracts and Project Billing functional areas.
  5. (Optional) To run multiple-element revenue allocation for multiple customer contracts, access the
    Run Multiple-Element Revenue Allocation
     report.
    Click
    Review Contracts
     and make any necessary changes.
    Security:
    Process: Customer Contract - View
     domain in the Customer Contracts and Project Billing functional areas.
Workday allocates the relative selling price for revenue recognition to the contract lines using your fair value and revenue allocation configurations.
You can access the:
  • Carve In/Out
     report to view a summary of revenue allocations on your customer contracts.
  • Fair Value Analysis
     report to view whether sales items are in compliance with fair value guidelines.