Integration with Distributed Order Orchestration Integrated Subscriptions

You can streamline your Oracle Revenue Management processing for revenue recognition for sales orders and services originating from Oracle Order Management and serviced by Oracle Subscription Management.

These are the key configuration steps you complete when using this integration.

Enable the Integrate Order Management with Subscription Management to Process Subscriptions feature in Order Management.
Configure Revenue Management System Options:
- Assign the Extraction Start Date and Revenue Clearing Account for the Source Document Type DOO Sales Order.
- Assign the Revenue Clearing Account for the Source Document Type Oracle Subscription Management.

With this integration:

When the sales order is submitted, Order Management sends order lines for items and services to Revenue Management to establish the accounting contract.
When an item is fulfilled in Order Management:
- Standard item: Order Management sends the fulfillment information to Revenue Management where revenue is recognized to the extent of fulfillment. Order Management also sends the order details to Oracle Receivables, which creates the invoice for the order.
- Service and Subscription items: Order Management sends the coverage service details to Subscription Management when the covered item is fulfilled in Order Management. Order Management sends the subscription details to Subscription Management as per the order orchestration process.

Subscription Management creates a subscription for the service or subscription and manages its life cycle after this point.
For subscriptions and other services, Order Management also sends the service duration and price periodicity information to Revenue Management.
Revenue Management recognizes revenue in accordance with the satisfaction plan based on the integrated service duration and price periodicity.
Any changes to the sales order lines before fulfillment are communicated to Revenue Management as revision lines. The revised transaction price is reallocated among the performance obligations for every revision.
Returns and revisions of standard items are extracted and sent to Revenue Management from Order Management for further processing.

Management of Services and Subscriptions from Subscription Management

When Oracle Subscription Management receives the service and subscription information from Oracle Order Management, Subscription Management manages all subsequent lifecycle changes for the subscription and takes ownership of sending those changes to Oracle Revenue Management.

When the subscription is activated, Subscription Management sends this subscription information to Revenue Management as a revision line, regardless of whether there are any revisions to the line sent earlier by Order Management. If there's no change to any of the revenue impacting attributes from the time the order line was sent to Revenue Management up to the time the subscription is activated by Subscription Management, then there's no reallocation of revenue triggered by Revenue Management for the corresponding accounting contract.

Any subsequent subscription changes performed in Subscription Management after activation are sent to Revenue Management as revision lines.

When an order manager initiates termination of a service or subscription in Order Management, Order Management sends this information to Subscription Management. Subscription Management then sends the revised or new revenue lines to Revenue Management.

When using Subscription Management with Order Management, Subscription Management manages the invoicing for services and subscriptions with Oracle Receivables. When the billing data is imported from Receivables into Revenue Management, the Import Billing Data process matches the invoices sent by Subscription Management with the revenue basis data sent by Order Management to Revenue Management when it's booked.

Refer to Guidelines for Integrating Revenue Management with Order Management and Cost Management in the Using Revenue Management guide for detailed configuration steps.

Guidelines for Using Distributed Order Orchestration Integrated Subscriptions to Support Revenue Recognition

When you automate revenue recognition for integrated subscriptions that originate from Oracle Order Management and are managed by Oracle Subscription Management, keep these points in mind:

The Extract Sales Orders for Revenue Management process extracts the sales orders initiated in Order Management and sends them to Oracle Revenue Management when the order is booked. This includes all orders except internal sales orders.
Order Management sends the service duration and price periodicity for revenue lines with service or subscription items only when Order Management to Subscription Management integration is enabled.
You use the Oracle Receivables line transaction flexfield Oracle DOO Integrated Subscriptions to generate invoices in the integrated subscription flow.
The invoices created from Subscription Management in this integrated flow use the Receivables transaction source Oracle DOO Integrated Subscriptions.
Subscription Management also sends the satisfaction plan and base price information to Revenue Management in this integrated flow.
Order Management sends all the multiple charges to Revenue Management upon submission of an order in this integrated flow. In the base Order Management integration with Revenue Management, only the primary charge is sent to Revenue Management.
Order Management doesn't send usage charges to Revenue Management in this integration. Subscription Management sends the usage charges directly to Revenue Management.