1. Using Revenue Management
  2. Performance Obligation Templates

Performance Obligation Templates

When goods or services are priced and sold as a package, use performance obligation templates to identify your performance obligations.

Performance obligation templates allow you to identify which goods or services are to be grouped together and assigned standalone selling prices based on their package pricing. For example, if you normally sell a set of goods or services as a standard package, you can define these goods or services in a performance obligation template. Upon processing, the goods or services are automatically grouped into one performance obligation and associated with the appropriate standalone selling price for the package of services.

Standalone selling prices for templates are defined based on the template definition and assigned at the performance obligation level instead of by individual goods or services within the template. Like individual goods or services, you:

  • Assign performance obligation templates to a standalone selling price (SSP) profile.
  • Assign the unit SSP for performance obligation templates by:
    • Using the Create SSP option in the Create or Edit Standalone Selling Price Profile page.
    • Running the Calculate Observed Standalone Selling Prices process to calculate the unit SSP for this performance obligation template.

For each performance obligation template, a priority number is assigned, which determines the order in which the template is applied when identifying source document lines into performance obligations. Templates with a lower priority number are evaluated first over templates with higher priority number assignments. Because performance obligation templates are specific to each business, there are no predefined performance obligation templates.

When configuring your performance obligation templates, you can:

  • Mark the resulting performance obligation as exempt from allocation. When a revenue contract is created consisting of the marked performance obligation, the performance obligation is excluded from the allocation of the contract's total transaction price.
  • Assign a default classification.
  • Duplicate an existing template to add new or remove items.
  • End date a template that's no longer valid for performance obligation identification.