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Requirement

Show contracted revenue with editable start and end dates, forecasted revenue, and the two blended

Functional Area

Planning

Industries
Technology
Tags
Revenue
DETAILS

Description

Integrating planning functionality in Corporate Performance Management (CPM) software involves the ability to show contracted and forecasted revenue side by side with adjustable date range selectors. This allows for a dynamic understanding of both contracted revenues - those guaranteed by contract, and forecasted revenues - that are estimated or projected. These editable dates must be unique to both the customer and the specific product that the customer owns. This assumes that customers do not always have contractually co-terminus licenses.

Example Use Case

Scenario: A technology company uses CPM software to manage their revenue planning. They have a mix of revenue sources including contracted revenue from existing clients with different start and end dates, along with forecasted revenue from upcoming projects and potential new clients.

Solution: The CPM software allows the company to view their contracted revenue within a specific, editable date range, unique to each customer and each product that the customer owns. They can also blend this information with forecasted revenue to get a comprehensive view of their financial status and to plan effectively.

Considerations

This functionality is helpful for modeling potential early cancellations. For example, you have several contracts with your customers with start and end dates. What if the customer pushes off the start date? What if they cancel before the end date and refuse to pay? Being able to model that in a system will save you from going offline in Excel.

Questions to Ask a Vendor

  • Editing and Viewing Options: How easily can the start and end dates be edited in the system? Can we edit individual product purchases within a specific customer?
  • Revenue Handling: How does your CPM software manage the blending of contracted and forecasted revenue? Can we view them separately and blended?
  • Financial Statements: How do these get reflected on forecasted financial statements**?**