Creating Revenue Recognition Waterfall

**combust17** · 10-03-2008, 02:11 PM

Hi Everyone,

First post and in need of suggestions.

So here's the setup: A customer purchases a service which lasts 6-months. As such, revenue recognition for the company can only occur as the service is provided. So if a person orders a $600 service at the beginning of a month, revenue will be recognized at $100 for the next 6 months

I'm trying to create an Excel Waterfall chart which will show the monthly revenue recognition amounts for all orders depending on the date which they were ordered.

I've attached a sample of what I'm looking to do. It's become tricky for me because Revenue Recognition is pro-rated based on the date ordered (i.e. order on the 20th of a month so at the end of the month 1/3 of the month is recognized as revenue)

I'm looking for something that will populate the percentage of the order amount, each month, that will be recognized. I've populated what row 3 should be, but there doesn't seem to be an easy way to apply a formula or something across all cells

Any suggestions are greatly appreciated.

**Conor** · 10-03-2008, 03:52 PM

try this formula in all of your cells. NOTE: this is based on your stated constant of 6 months for each contract. If that changes, adjust formula accordingly. Also, does not total to exactly 100% because you are using a fixed .166667 for months 2-6.

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Conor

**combust17** · 10-03-2008, 04:02 PM

I am very impressed. Shows that I have a little bit more to learn, haha.

Thanks for you help

**barkeep15** · 08-03-2016, 06:09 PM

What if revenue can only be recognized up to a maximum per month? So in the case of a services company can only consume $25k in services per months. On an $85k contract this will be recognized over 4 months - Months 1-3 for $25k each and then Month 4 for $10k. How would that work?

**protonLeah** · 08-03-2016, 06:16 PM

barkeep15,
Unfortunately your post does not comply with Rule 2 of our Forum RULES. Do not post a question in the thread of another member -- start your own thread.

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