Understanding Revenue Plans

Revenue recognition can be managed by either PeopleSoft Contracts or PeopleSoft Billing. When PeopleSoft Contracts manages revenue for a contract line, you associate each contract line with a revenue plan. The revenue plan contains a list of events defining when revenue is recognized for each contract line assigned to that revenue plan.

When PeopleSoft Billing manages revenue for a contract line, you do not set up revenue plans. You only need to link the contract line to a billing plan. PeopleSoft Billing then recognizes revenue for that contract line as the contract line is billed.

This section discusses:

• Revenue recognition setup.

• Revenue plans.

• Revenue recognition event types.

• Revenue recognition methods.

• Revenue plan and event statuses.

• Revenue plan assignment rules.

• Revenue preview.