When the Residual Approach is Used to Estimate the Standalone Selling Price
Revenue Management estimates the standalone selling price for a performance obligation when an order line within the obligation consists of the Use Residual Approach designation or it is identified in a performance obligation template with the Use Residual Approach designation.
This table shows the two residual approach methods you can use:
Residual Approach Method | Navigation | Details |
---|---|---|
Revenue Basis Data Import template | In the VRM_SOURCE_DOC_LINES tab of the Revenue Basis Data Import template, enter Y in the Use Residual Approach column, which indicates whether the order line should use the residual approach when estimating the standalone selling price. |
When the Use Residual Approach column for the order line within the obligation equals Y, the application:
Note: The Derive Pricing Dimension Combination functionality
on the Create Performance Obligation Template page is used only as a
secondary grouping mechanism and has no impact on the residual
estimate calculation.
|
Create Performance Obligation Template page | In the Create Performance Obligation Template page, click the Use Residual Approach check box. |
When the Use Residual Approach check box is enabled, the application:
Note: The Derive Pricing Dimension Combination functionality
on the Create Performance Obligation Template page is used only as a
secondary grouping mechanism and has no impact on the residual
estimate calculation.
|