Revenue Plan Assignment Rules

You assign contract lines to revenue plans on the Assign Revenue Plan page. From this page, you can either assign contract lines to existing revenue plans for that contract or you can create a revenue plan and assign contract lines at the same time. You can assign multiple contract lines to a single revenue plan. Each contract line for which PeopleSoft Billing manages revenue, cannot be assigned to a revenue plan. These are the rules for assigning a contract line to a revenue plan:

  • The contract lines must be active.

  • The revenue recognition method must be valid for the price type.

  • The contract lines must be of the same revenue recognition method as the revenue plan unless you have selected the revenue recognition override option for the associated business unit on the Contracts Definition - Processing Options page.

  • When assigning an existing revenue plan, the revenue plan status must be Pending.

You can assign contract lines to revenue plans for contracts in Pending and Active statuses. When a contract is in Pending status, contract lines are still available for amount allocation. Assigning a contract line to a revenue plan does not impact your ability to perform amount allocation on that contract line. The system stores all amounts related to revenue plans and revenue plan events as a percentage of the revenue plan total. You can define events by percentage or amount. If you define by amount, you must manually update those amounts after making changes to the contract line amount. If you define by percentage, the changes to contract lines amounts made during the amount allocation step are automatically reflected on the revenue plan and revenue plan event amounts.

Note:

You do not assign recurring contract lines to a revenue plan. Recurring contract lines use the Billing Manages Revenue method.

Note:

If the Separate Fixed Billing and Revenue check box is selected on the contract then Billing Manages Revenue method is not available for assigning to the contract lines.

Note:

If you want to assign a revenue plan template with a basis date source option of Contract Line Start Date to a contract line, you must have already defined the start date for the contract line on the Contract – Lines page.

If you select multiple contract lines and select a revenue plan template with the basis date source option of Contract Line Start Date, the system assigns the same revenue plan only if the start dates for all the selected contract lines are identical. If you want to assign separate revenue plans to the contract lines using a revenue plan template with a basis date source option of Contract Line Start Date, then assign a revenue plan template separately for the individual contract lines.

Assigning Revenue Plans

The following steps provide a high-level sequence of the activities that you need to perform when assigning contract lines to revenue plans.

To assign contract lines to revenue plans:

  1. Create a new contract in Pending status.

  2. Select products onto contract lines.

    Note:

    If you associated revenue plan templates with your products, upon selecting those products onto contract lines and clicking Save, the system creates revenue plans and assigns them to contract lines automatically.

  3. Assign the active contract lines to revenue plans (could be step 5).

    You can assign a contract line to either a new revenue plan or a revenue plan that you have previously defined for the contract. You can define events for apportionment- and milestone-based revenue plans either before or after activating the contract.

  4. Complete the amount allocation for all active contract lines.

    This could change the amount on any active line.

    Repeat steps 2–4 as needed.

  5. Activate the contract.

    It is possible to activate the contract prior to assigning any or all of the active lines to revenue plans.

  6. Ready the revenue plans.

    Note:

    If you selected the autoready option for this revenue plan, the system automatically changes the revenue plan status to Ready upon contract activation.

Unassigning Revenue Plans from Contract Lines

For a contract line to be unassigned from a revenue plan, its associated revenue plan status must be Pending, Reversed, or Cancelled to ensure that no processing has occurred. The revenue plan cannot have a status of Ready or In Progress.

Note:

If you wish to delete a contract line that is associated with a revenue plan with a basis date source of Contract Line Start Date, you cannot delete the contract line until you unassign the associated revenue plan.

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