System Options

Revenue Management system options define key processing, configuration, integration and accounting options at the application level, including currency conversion rate types, source document and transaction source extraction start dates, and revenue accounting and thresholds.

On the Manage System Options for Revenue Management page, you can define system options as follows:

• Processing
• Currency conversion
• Reference currency for standalone selling prices
• Integration
• Revenue accounting and thresholds

Processing

Use the invalid line handling option to define how to handle invalid source document lines when identifying the contract:

System Option	Description
Invalid Line Handling	Defines how to handle invalid source document lines: Reject line: Used to ignore invalid source document lines and create a contract with only valid source document lines. Reject contract: Used to suspend the contract creation until all the source document lines are valid (corrected and error free).

Currency Conversion

Use these system options to define the currency conversion rate:

System Option	Description
Conversion Rate Type	Defines the conversion rate type to be used in Oracle General Ledger to convert the local currency line transaction amounts into ledger currency amounts.
Disable Override from Source	Defines whether to use the conversion rate type, date, and rate that were imported with the source document line or the conversion rate type defined in the Manage System Options for Revenue Management page. When selected, the application ignores the conversion information on the source document lines.

Reference Currency for Standalone Selling Prices

Use these system options to define the reference currency used for standalone selling prices:

System Option	Description
Enable Reference Currency	Enables you to define a single reference currency for standalone selling prices applicable across all ledgers configured within your instance.
Currency	Defines the currency to be used as the reference currency.
Rate Type	Defines the rate type that you want to use to convert revenue line amounts to the reference currency. For example, Corporate or Daily Exchange Rate.
Rate Date	Defines the date of the rate that you want to use to convert amounts to the reference currency, either the contract date or the reference currency rate date.

Integration

Use these system options to specify the source applications that are integrated with Revenue Management:

System Option	Description	Attributes
Source Document Type	Defines the type of source documents to be imported into the application.	Ledger: Provide the primary ledger for which you want to manage revenue in Revenue Management. Source Document Type: Provide the Source document type of the primary ledger which you want to integrate with Revenue Management. You can only select the Source document type that's defined in Manage Source Document Types setup. Revenue Clearing Account: Provide the account that should be used as revenue clearing account in Accounts Receivables as well as Revenue Management. Extraction Start Date: The start date of the integration for the selected source document type of the primary ledger. This is the date from which revenue basis data is imported or extracted into Revenue Management.
Oracle Receivables Transaction Sources	Defines the Receivables transaction source to be imported into the application.	Ledger: Provide the primary ledger for which you want to manage revenue in Revenue Management. Transaction Source: Provide the Receivables Transaction Source that you want to integrate with Revenue Management. Transaction Source Set: The transaction source set of the transaction source is automatically displayed here. Extraction Start Date: The start date of the integration for the selected transaction source. This is the date from which data will be imported into Revenue Management. End Date: The date on which you want to stop managing revenue in Revenue Management for this transaction source.

• Extraction Start Date

  Refers to the date from which revenue basis data is processed in Revenue Management. Extraction start date is configured for a combination of ledger and source document type. This date can be as early as January 1, 2014.

  Note: Once revenue basis data of a source is extracted into Revenue Management, you can’t update the extraction start date of that source.

  Here are the reasons why extraction start date is importance:

  • Iterative modelling.
    • You can extract some historical revenue basis data, create rules, check how the contracts and performance obligations are identified, how the transaction is valued and allocated, and revenue is recognized.
    • You can discard the contracts identified from a set of rules, configure new rules, and reprocess the revenue basis data and check how the contracts appear now with new rules. This can be done without reimporting the data.
    • Configure a secondary ledger to populate the accounting entries from Revenue Management into the secondary ledger only during the iteration period.
    • Once you are happy with the results, you can set the adoption period, which is a future period, from which Receivables will NOT recognize revenue and Revenue Management will start recognizing the revenue.
  • Historical Data
    • Allows you to limit the volume of historical data sent to Revenue Management.
  • Billing Data
    • Fusion Receivables sends the billing data related to the Revenue Management integrated Fusion applications to Revenue Management from the Extraction start date.
• Extraction for Each Source Document Type
  Extraction differs for each source document type as follows:

  • In case of Fusion Order Management and Subscription Management Cloud, the source systems send the revenue basis data to Revenue Management.
  • In case of Fusion Projects and Fusion Receivables, Revenue Management extracts the revenue basis data from the source applications.
• Extraction start date with respect to Cloud Applications

  This table displays details such as extraction start date. revenue basis data, billing data and extraction start date for Cloud applications:

  Source Document	Date	Revenue Basis Data	Billing Data	Notes
  Order Management	Order Submission Date	All Orders with submission date on or after extraction start date are sent to Revenue Management.	All invoices created from Fusion Order Management with sales order date on or after extraction date are sent to Revenue Management as bill lines.	Pass manual adjustment journal entries for the in-flight transactions and back dated transactions if required.
  Subscription Management	N/A	There is no extraction date for Subscription Management; All subscriptions are sent to Revenue Management once the integration is enabled in Manage System Options for Revenue Management.	All invoices created from Subscription Management are sent to Revenue Management once the integration is enabled.
  Fusion Projects	Project Creation Date	Project creation date is compared with Extraction start date; All projects with creation date on or after extraction date are extracted into Revenue Management.	All invoices created from Projects with document creation date on or after extraction date are sent to Revenue Management.
  Receivables	Invoice Creation Date	Invoice creation date is compared with Extraction start date; All invoices with creation date on or after extraction date are extracted into Revenue Management.	All Receivables invoices with document creation date on or after extraction date are sent to Revenue Management.	Integration with Receivables is at Transaction Source level.

Revenue Accounting and Thresholds

Use these system options to specify accounting and thresholds.

System Option	Description
Primary Ledger	Specifies the primary ledger you're using for revenue accounting and defining thresholds. The primary ledger is the main record keeping ledger defined in your accounting configuration.
Allocation Currency Basis	Specifies the revenue contract currency to be used to allocate and recognize revenue for the ledger, either transaction (Entered) currency or ledger (Accounted) currency.
Revenue Management Ledger	Defines the ledger you're using as the Revenue Management ledger. The Contract Activities report refers to this ledger to report on contract account activity.
Adoption Period	Indicates the period from which your businesses transition to revenue accounting standards ASC 606 and IFRS 15. You can configure the adoption period in the Manage System Options for Revenue Management setup page. You can configure a future period only as adoption period. You can't modify the adoption period once the system date is after the adoption date. As part of the transition, you must configure the subledger accounting rules of Receivables to hit Revenue Clearing account instead of Revenue account from the adoption date onwards. All the transactions in Receivables (that are enabled for integration with Revenue Management) and has the accounting date as equal to or later than the adoption date, will hit Revenue clearing account. Refer to Doc ID 2446808.1 for guidance to configure the Subledger accounting rules of Receivables.
Adoption Date	This date is defaulted automatically as the first day of the adoption period. Receivables stop recognizing revenue, and Revenue Management starts recognizing revenue on this date.
Revenue Management Accounts	Defines the Revenue Management accounts used when creating journal entries to General Ledger: Contract Liability Contract Asset Currency Revaluation Offset Price Variance Contract Discount Revenue Write-Off
Threshold Amounts	Define the lower limit amount to be applied in identifying the transaction price, discount allocation exemptions, and whether a contract's transaction price requires manual review: Transaction Price Exemption: Used to automatically exempt a contract from transaction price allocation if the contract's total transaction price is less than or equal to the threshold amount. Discount Exemption: Used to automatically exempt a contract from transaction price allocation if the discount amount is less than or equal to the threshold amount. Note: The discount amount is the absolute amount of the difference between the selling amount and the allocated amount of the performance obligation. Transaction Price Review: Used to automatically set the contract status to a status of Review Required when the contract's total transaction price is equal to or greater than the threshold amount. The revenue analyst or manager reviews the contract and sets the contract to Mark as Reviewed. Note that the contract is allocated only after it's set to Reviewed.