Implied Performance Obligation Templates

Use an implied performance obligation template to automatically create performance obligations in a customer contract that are implied in nature. These implied performance obligations aren't captured in any upstream application as source document lines.

Define rules for creating implied performance obligations in the template. The application then uses these rules to create implied performance obligations automatically in customer contracts.

For example, a phone dealer may run a special promotion that includes a free car charger with any phone purchase. In this case, the phone dealer must modify the phone order management application to implement the promotion:

• The phone dealer defines an implied performance obligation template to create the additional performance obligations automatically for the car charger.
• The application can then allocate revenue to the implied performance obligations when it allocates the total transaction price across all of the performance obligations in the accounting contract.