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Revenue Line Items: Anyone using this approach to capture multi-stage invoicing of opportunities?

Question asked by Stowe Beam on Jul 2, 2015
Latest reply on Jul 2, 2015 by Peter Fletcher
We are using 6.5.17 and about to upgrade to the latest 7.6. We are in Enterprise.

I am trying to help integrate/translate won sales into our actual revenue forecast. Typical scenario is that we have large opportunities that will be invoiced to the client in 2, 3, or 4 stages often over the course of multiple quarters and occasionally, years. That schedule is usually set in the proposal, so sales has good insight into that information.

In researching how to use Sugar to capture this reality so sales can hand over to operations a won deal with information on likely timing, I dug into the Revenue Line Item functionality. My idea is to use a revenue line item to represent each stage of the expected invoicing (e.g. a project with a 2 stage invoicing schedule--50% up front, 50% at completion--would have two revenue line items. The sales person would set the expected close date for each line item based on both when the project should close and, if won, when the second invoicing will likely occur. When a deal is won, both line items would be marked as won, with any adjustment to the schedule.

Am I thinking about this correctly? Is anyone doing something similar or have a completely different way to help translate the sales forecast to a revenue forecast?

Thanks.

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