Automatic Adjustment of Total Satisfaction Percentage in Revenue Management for a Contract Line Amount Amendment

Automatically reverse and rebook the inception-to-date satisfaction percentage in Revenue Management when amendments are made to project contract line amounts in Enterprise Contracts. The main benefit of this feature is the improved efficiency with which revenue is synchronized between Project Billing and Revenue Management.

How it works?

Activation of a project contract line amount amendment triggers the automatic creation of revenue-only project contract billing events to adjust the satisfaction percentage. The billing events are created using two new event types; Satisfaction Percent Reversal and Satisfaction Percent Rebooking. The billing events both have a zero amount, ensuring that the inception-to-date revenue total in Project Billing is unaffected:

Manage Events

Running the Extract Revenue Basis Data, Validate Customer Data, and Identify Customer Contracts processes achieves the following results in Revenue Management:

1. Adjustment of the expected consideration for the performance obligation.
2. Recalculation of the allocated revenue across all performance obligations that comprise the customer contract in Revenue Management.
3. Reversal and rebooking of the balance sheet accruals.
4. Reversal of the original and rebooking of the revised revenue, using the total of the previously extracted satisfaction percentages.

When you next run the Generate Revenue process that includes the amended project contract line, the reversal and rebooking satisfaction percent revenue distributions are generated which are eligible for extraction to Revenue Management:

Manage Revenue Distributions

At this point, you can also view the satisfaction percentage calculations from the Manage Events and Edit Event pages:

Satisfaction Percent Event Details - Reversal

Satisfaction Percent Event Details - Rebooking

Running the Extract Revenue Basis Data, Validate Customer Data, and Identify Customer Contracts processes again achieves the following results in Revenue Management:

1. Reversal of the first revised revenue, using the reversal satisfaction percentage to bring total revenue in Revenue Management down to zero.
2. Rebooking of the second revised revenue, using the rebooking satisfaction percentage to bring total revenue in Revenue Management in line with total revenue in Project Billing.

Business benefits include:

• Improved efficiency with which revenue is synchronized between Project Billing and Revenue Management.

• Fewer reconciling differences in revenue between Project Billing and Revenue Management by preventing the contract line amount from being prospectively amended below the inception-to-date revenue recognized.

• Improved period-end reporting through verifying the calculation of the satisfaction percentage reversal and rebooking in Project Billing.

• Improved reconciliation reporting capabilities using Business Intelligence Publisher reports that can contain satisfaction percentages from both Project Billing and Revenue Management.

Steps to Enable

Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.

Offering: Project Financial Management  No Longer Optional From: Update 26B

Tips And Considerations

• It is not mandatory to run the Extract Revenue Basis Data, Validate Customer Data, and Identify Customer Contracts processes between the activation of the project contract line amount amendment and the running of the Generate Revenue process to create the satisfaction percent reversal and rebooking revenue distributions. The Identify Customer Contracts process first performs all adjustments to the performance obligation and then recognizes revenue for the newly extracted satisfaction percent reversal and rebooking satisfaction events.

• When this feature is enabled, you must specify an Amendment Effective Date that is either the contract start date or the earlier of today's date and the contract end date. Providing any other date as the Amendment Effective Date causes a contract validation error. This ensures the amendment is either fully retroactive, such that all revenue in Project Billing is automatically reversed, or fully prospective, such that no revenue in Project Billing is reversed. This simplifies the creation of the automatic billing events to reverse and rebook the satisfaction percentages.

• A single project contract line amount amendment will result in 2 reversals and 2 rebookings of revenue in Revenue Management, where the first rebooking uses the previously extracted total of satisfaction percentages, and the second rebooking uses the new total of satisfaction percentages.

• The 2 new seeded event types - Satisfaction Percent Reversal and Satisfaction Percent Reboooking - can't be modified in any way. They aren't available for use in creating new or updating existing billing events using FBDI, REST APIs, web services, or the UI. They are available for use in the Billing Resource Breakdown Structure, Oracle Transactional Business Intelligence (OTBI), and conditions when creating a source for a Project Process Configurator, but because all satisfaction percent reversal and satisfaction percent rebooking billing events have a zero amount, they won't impact any processing or reporting.

• We are planning to deliver improvements to the reporting capabilities involving the integration between Enterprise Contracts, Project Billing, and Revenue Management within the next 12 months.

Key Resources

• This feature was based on ideas 651267, 713396, and 586243 from the Project Management Idea Lab on Oracle Cloud Customer Connect.

Access Requirements

No new access requirements.