Hey all,
I'm wondering if anyone has any module examples for modelling revenue that is generated on a school term schedule? The case I have is that parents generally pay upfront for tutoring for a school term. It is both a revenue recognition as well as a cost of sales driver problem - the amounts invoiced upfront should be unwound over the school term, and then there will be a specific number of active students which should reset at the end of each school term, which I am trying to use to drive the number of tutors needed.
I have looked into altering the SaaS contracts driver to a 3-month schedule which correctly allocates the unearned revenue over a period of 3 months, but this doesn't exactly align to the school terms so it is imperfect - the number of active students tracked is also imperfect as they're always there for a three month period after the initial payment, including the first month (for example, parents may pay in January for the February-March school term so the active student wouldn't be recognised correctly).
I'm not sure I've explained this very well but was wondering if anyone has thoughts towards potential solutions? I'm thinking a similar deferred revenue driver could be created with an input for the number of school terms in a month, combined with an input for indicating which school term parents are paying for which would then allow the number of students to be tracked accurately based on the number of students signed up for a term (essentially decoupling the revenue invoiced from the "active students" tracking).
Cheers,
Matt
Hi Matt,
Are you able to mock something up in a quick and dirty Excel file to demonstrate how you want it to work?
I'm just trying to determine whether your main issue here is understanding the logic, representing it in Excel, or incorporating it in a Modano model.
Thanks,
Michael