System Options

Revenue Management system options define key processing, configuration, integration and accounting options at the application level, including currency conversion rate types, source document and transaction source extraction start dates, and revenue accounting and thresholds.

On the Manage System Options for Revenue Management page, you can define system options for the following:

• Processing
• Currency conversion
• Reference currency for standalone selling prices
• Integration
• Revenue accounting and thresholds

Processing

Use the following system option to define how to handle invalid source document lines when identifying the contract:

System Option	Description
Invalid Line Handling	Defines how to handle invalid source document lines: Reject line: Used to ignore invalid source document lines and create a contract with only valid source document lines. Reject contract: Used to suspend the contract creation until all the source document lines are valid (corrected and error free).

Currency Conversion

Use the following system option to define the currency conversion rate:

System Option	Description
Conversion Rate Type	Defines the conversion rate type to be used in Oracle General Ledger to convert the local currency line transaction amounts into ledger currency amounts.
Disable Override from Source	Defines whether to use the conversion rate type, date, and rate that were imported with the source document line or the conversion rate type defined in the Manage System Options for Revenue Management page. When selected, the application ignores the conversion information on the source document lines.

Reference Currency for Standalone Selling Prices

Use the following system options to define the reference currency used for standalone selling prices:

System Option	Description
Enable Reference Currency	Enables you to define a single reference currency for standalone selling prices applicable across all ledgers configured within your instance.
Currency	Defines the currency to be used as the reference currency.
Rate Type	Defines the rate type that you want to use to convert revenue line amounts to the reference currency. For example, Corporate or Daily Exchange Rate.
Rate Date	Defines the date of the rate that you want to use to convert amounts to the reference currency, either the contract date or the reference currency rate date.

Integration

Use the following system options to specify the source applications that are integrated with Revenue Management:

System Option	Description
Source Document Type	Defines the type of source documents to be imported into the application for a primary ledger, along with: The revenue clearing account to be used when creating the revenue clearing journal entry for the source document. The start date of integration for a source document type. This is the date data will start being imported into Revenue Management.
Oracle Receivables Transaction Sources	Defines the Receivables transaction source to be imported into the application for a ledger. The start date of integration for a transaction source is the date on which data will start being imported into Revenue Management. Use this option when a Receivables transaction source is imported into Revenue Management as a source for both the revenue basis line and billing.

Revenue Accounting and Thresholds

Use the following system options to specify accounting and thresholds.

System Option	Description
Primary Ledger	Specifies the primary ledger you're using for revenue accounting and defining thresholds. The primary ledger is the main record keeping ledger defined in your accounting configuration.
Allocation Currency Basis	Specifies the revenue contract currency to be used to allocate and recognize revenue for the ledger, either transaction (Entered) currency or ledger (Accounted) currency.
Revenue Management Ledger	Defines the ledger you're using as the Revenue Management ledger. The Contract Activities report refers to this ledger to report on contract account activity.
Adoption Period	Specifies the accounting period from which you want to recognize and account revenue according to the Accounting Standards International Financial Reporting Standard 15 and the Accounting Standards Codification 606.
Adoption Date	This date is defaulted automatically as the first day of the adoption period.
Revenue Management Accounts	Defines the Revenue Management accounts used when creating journal entries to General Ledger: Contract Liability Contract Asset Price Variance Contract Discount Revenue Write-Off
Threshold Amounts	Define the lower limit amount to be applied in identifying the transaction price, discount allocation exemptions, and whether a contract's transaction price requires manual review: Transaction Price Exemption: Used to automatically exempt a contract from transaction price allocation if the contract's total transaction price is less than or equal to the threshold amount. Discount Exemption: Used to automatically exempt a contract from transaction price allocation if the discount amount is less than or equal to the threshold amount. Note: The discount amount is the absolute amount of the difference between the selling amount and the allocated amount of the performance obligation. Transaction Price Review: Used to automatically set the contract status to a status of Review Required when the contract's total transaction price is equal to or greater than the threshold amount. The revenue analyst or manager reviews the contract and sets the contract to Mark as Reviewed. Note that the contract is allocated only after it's set to Reviewed.