Subscription Duration and Price Periodicity
Use the subscription duration and price periodicity information to assign standalone selling prices to services.
- Price periodicity refers to the periodicity at which the service is priced. Examples of price periodicity are Year, Month, Week, or Day.
- Service duration is the duration of the service in terms of price periodicity.
You can capture the service duration and price periodicity for services created from:
- Oracle Fusion Cloud Subscription Management
- Oracle E-Business Suite Order Management and Service Contracts
- Third-party applications
When Revenue Management is enabled with Subscription Management, Subscription Management provides the actual unit selling price, service duration, and price periodicity with the required subscription details for the revenue line.
For subscription lines, the unit selling price of an item represents the price per unit of measure of the item and per price periodicity. The line amount represents the quantity * service duration * unit selling price.
For example, a customer purchased a three-year extended warranty for five laptops. The price is 100 USD per laptop per year. In this case, the revenue line is represented as:
| Field | Value |
|---|---|
| Unit of Measure | Each |
| Price Periodicity | Year |
| Quantity | 5 |
| Service Duration | 3 |
The source application sends the line amount as Quantity * Service Duration * Unit Selling Price, which is equal to 5 * 3 * 100 = 1500 USD.
The unit selling price of an item represents the price per unit of measure of the item and per price periodicity.
If there's a change in the service duration and price periodicity on the service that impacts the service duration and price periodicity, the source application sends the change as a revision line to Revenue Management.
As a default, for subscription charges, Subscription Management assigns the unit list price for the subscription change as the unit standalone selling price.
When E-Business Suite Order Management and Service Contracts is enabled with Revenue Management, the applications send the service duration and price periodicity into Revenue Management, along with the service details as the revenue basis data.
For third-party source applications, you can provide the service duration and price periodicity for the lines using the Revenue Basis Date Import template.
The Service Duration and Price Periodicity attributes are optional. You can continue to receive service data from source applications without the service duration and price periodicity. In such cases, the line amount is represented as Quantity * Unit Selling Price. The selling price and the extended standalone selling price is calculated as Quantity * Unit SSP.
You can view the service duration and price periodicity on the contract in the Promised Details tab of the Edit Customer Contract page. You can also view revisions to the Service Duration attribute within the Line Reference Details tab for the promised detail line.
When adding an implied performance obligation with a satisfaction measurement model of Period, you can optionally provide the service duration and price periodicity to be used in the Edit Customer Contract page. You can enter these fields only on contracts that aren't frozen. Once the contract is frozen, you can't make any edits to these two attributes.
You can also use the service duration and price periodicity as segments in your pricing dimension structures. You can also define the attributes in pricing bands to facilitate the assignment of unit standalone selling prices based on the service duration.
When the Validate Customer Contracts Source Data process identifies an invalid value for the service duration and price periodicity, it's displayed in and can be corrected on the Correct Contract Document Errors spreadsheet.