Our company has the ambition to build a recurring revenue base. The first subscription-based agreement was signed in August and there is a pipeline of open deals, all with monthly revenue. Deals are typically generated in USD and EUR, whilst our local and reporting currency is NOK. We have therefore looked into the recurring revenue reporting tool, seeking to integrate won + open recurring revenue deals (risked) into a revenue forecast.
I see some challenges and would like to share these;
- Recurring revenue seem to be reported in the local currency, disregarding the actual deal currency (1 EUR reported as 1 NOK).
- The revenue forecast uses deal value, not the recurring revenue, and there is no connect between the two, such as using the “total revenue earned” automatically generated on a subscription.
- There seems to be no “probability adjustment” option for open recurring revenue deals.
- Won deals are re-calculated based on updated exchange rates, such that there will be offsets between reported revenue in financial accounts and won deals that are in other currencies than the currency used in the financial accounts. We are implementing a custom field (value entered when an invoiced is issued) and would like to use this value in the “accumulated revenue forecast”.