Performance Satisfaction Plans
Create satisfaction plans to determine the number of periods and the amount of revenue to recognize in each period for a performance obligation.
There are four types of satisfaction plans that you can create when the satisfaction measure model is Period.
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Performance Satisfaction Plan Type |
Description |
|---|---|
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Daily revenue rate, all periods |
Prorate revenue recognition using a daily rate for all periods. This rule type requires that the rule start date and end date be specified in the transaction data. For example, if a performance obligation is for a 12-month cloud subscription service starting January 1, 2017, the satisfaction plan will use the following daily rates revenue recognition schedule: January = 31 days, February = 28 days, March = 31 days, April = 30 days, and so forth until the end of December 2017. Note: The number of days in a period depends on the accounting
calendar defined in General Ledger.
|
|
Daily revenue rate, partial periods |
Prorate revenue recognition using a daily rate only for partial periods. The whole periods are prorated evenly. This rule type requires that the rule start date and end date be specified in the transaction data. |
|
Fixed schedule |
Prorate revenue recognition over a predefined number of periods and predefined percentages of the revenue amount. For example, you can specify three periods for 30 percent, 30 percent, and 40 percent. When you use this rule, the application derives the duration from the rule. |
|
Variable schedule |
Prorate revenue recognition over a number of periods. This rule type requires that the rule start date and end date be specified in the transaction data. |