Issue/Symptom/Question

The MC was created and cancelled within the same period, why does PENTA show revenue?

How do I cancel a MC?

Applies To

PENTA for Windows

Revenue Recognition

Maintenance Contract - Coverage Periods

Resolution/Fix/Answer

 To cancel the MC:

• click on the Change/Review Status... button in the coverage period block,
• insert a row and enter the effective date of the cancellation,
• the cancelled status, the reason,
• and any comments.

When Canceling the MC:

1) Earned is set to billed with the first revenue recognition where:

• The rev rec date is >= the coverage period’s end date. 
• There are no future dated billings.
• There are no unprocessed scheduled billings.

2) Perform the following when cancelling a coverage period early (to prevent Revenue from calculating incorrectly):

1. Delete any scheduled billings that will never actually be billed.
2. Adjust the contract amount based on the cancellation to be the max amount of revenue to earn on the MC.  Note: that this gets done automatically if the scheduled billings are deleted
3. If earned should be set to billed right away for the MC, then need to set the end date of the coverage period to the cancellation date.  Note: this isn’t necessary if "new/adjusted" contract amount from step 2 has been billed—once the cancellation date is reached we should be calculating earned as billed anyway.