Activation Revenue Recognition

Purchase charges can pay for a purchase grant or an activation grant. Revenue is recognized at purchase time only if the purchase charges pay for purchase grants. An activation grant can be the target of a purchase charge or activation charge and in this case, the revenue recognition type is set to pending. If a purchase charge pays for an asset, the revenue recognition type is determined by the asset type. Consumption-based assets are liability assets; daily (or straight-line) assets are non-liability assets.

When a charge and grant are in separate events, the activation event has a GL info record that references the purchased asset, but does not reference any charged balances. This is known as a proxy GL info record. For more information, see the discussion about proxy GL info records.