Hi, I am trying to build a revenue recognition/renewal model as attached.
It supposed to spread the Total Price over the Start and End dates.
As an example, I highlighted row 15. Here, the Total Price is 1200. That first should be multiplied by the appropriate renewal rate of 80% and then be spread over the start and end date.
However, at the end of the end date, the assumption is that the license is again renewed. Therefore the total of 1200*.8 *.8 should be spread over the start and end months as the first term. This should persist through perpetuity as long as there is a renewal assumption.
Is there a clearer way to model this/equation that would work? Ive been spinning my head. Should we do if statements with 3 scenarios? This would be applied to a much larger data set. Thanks again for your help.
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