Guidelines for Working with Additional Satisfaction Events

Keep the following points in mind when working with additional satisfaction events:

• During inception, the Identify Customer Contracts process assigns the revenue lines with additional satisfaction events based on the configuration.
• The Recognize Revenue of Customer Contracts process holds revenue recognition until both the primary and additional satisfaction events are fulfilled.
• When the satisfaction measurement model is Period, import only the fulfillment date for the additional satisfaction event types Customer acceptance and Proof of delivery.
• When the additional satisfaction event is Payment, the application calculates the revenue recognized using the formula ((Amount Applied/Line Amount)*Allocated Amount).
• When both the primary and additional satisfaction events of a performance obligation are fulfilled, you recognize revenue based on your policies that reflect the ASC 606 and IFRS 15 accounting standards.
• A revenue line can have more than one additional satisfaction event assigned to it depending on your configuration.
• When you discard a contract, all the revenue lines are reevaluated for the additional satisfaction events. The additional sublines are reprocessed like new source document additional sublines.
• You can also configure revenue to be recognized for an additional satisfaction event assigned to a performance obligation once a defined number of days has been reached.
• Additional satisfaction events aren't assigned to an implied performance obligation.