To properly plan for company growth, Cloud Kicks needs to track monthly revenue projections from the sales of its annual Subscription service.
How should the Consultant configure Salesforce to support this reporting need?
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A. B. C. D.D
To properly track monthly revenue projections from the sales of Cloud Kicks' annual Subscription service, the Consultant should configure Salesforce using the following approach:
Answer: D. Opportunity Products with monthly Product Schedules
Explanation:
Opportunity Products: First, the Consultant should ensure that the Subscription service is set up as a Product in Salesforce. This can be done by creating an Opportunity Product record for the Subscription service. The Opportunity Product represents the specific product or service being sold within an Opportunity.
Product Schedules: Next, the Consultant should enable the "Scheduling" feature for the Opportunity Products related to the annual Subscription service. Enabling this feature allows for the creation of monthly Product Schedules, which will track revenue recognition over time.
Monthly Product Schedules: Once the "Scheduling" feature is enabled, the Consultant should create monthly Product Schedules for the Subscription service. Each monthly Product Schedule will represent the projected revenue for a specific month within the annual subscription period.
Revenue Projections: The Consultant should populate the monthly Product Schedules with the projected revenue values for each month. These values can be based on the expected monthly revenue from the Subscription service sales.
Reporting: With the monthly Product Schedules in place, Salesforce can generate various reports to support revenue projections and tracking. The Consultant can utilize standard or custom reports to analyze and visualize the monthly revenue projections, allowing Cloud Kicks to plan for company growth effectively.
Why this answer is correct: Option D is the most appropriate answer because it leverages the built-in functionality of Opportunity Products and Product Schedules in Salesforce to track revenue projections over time. The Opportunity Products represent the Subscription service being sold, and the monthly Product Schedules allow for the creation of revenue projections on a monthly basis. This approach provides the necessary structure and flexibility to support accurate reporting and planning for company growth.
Option A (Opportunity Dashboard showing Opportunities Closed each month) focuses on closed opportunities rather than tracking revenue projections. While closed opportunities can provide insights into historical sales performance, they do not directly address the need for revenue projections.
Option B (Opportunity Dashboard showing Products sold each month) provides information about products sold each month, but it does not capture the revenue projections for the annual Subscription service. It lacks the granularity required for tracking revenue over time.
Option C (Opportunity Products with formula fields for each month's value) suggests using formula fields to calculate revenue values for each month. While this approach can provide some level of automation, it may be more complex to manage and update formulas as the business grows and revenue projections change. Using Product Schedules is a more straightforward and scalable solution.