Example of Creating a Performance Obligation Template

This example shows you how to configure a performance obligation template to create performance obligations for new product offerings with insufficient sales history to establish a standalone selling price.

The performance obligation is for a new bundle service with no pricing (sales) history. As a result, the residual standalone selling price method is used to assign a standalone selling price to the performance obligation.

To create a performance obligation template:

1. Navigate to the task Manage Performance Obligation Templates.
2. Click the Add icon to create a new template.
3. On the Create Performance Obligation Template page, in the header section enter these values:

   Field	Value
   Name	PC-Bundle
   Satisfaction Method	Allow partial
   Priority	30
   Enabled	Yes
   Exempt from Allocation	No
   Effective Start Date	Current date
   Effective End Date	Blank
   Description	This field is optional.
   Default Classification	Hardware
   Derive pricing dimension combination	Enabled
   Use Residual Approach	Enabled
   Allocation Basis	Blank

4. Click Save and Close.
5. Run the Identify Customer Contracts process. The performance obligation template definition is used to identify performance obligations during the Identify Customer Contracts process.
   Note: Only material contract modifications are allowed on a performance obligation created through this setup. Immaterial change settings are ignored.