Prerequisites

Here are the prerequisites for Allowance Based Revenue Recognition.

• Customers must set up an allowance-based usage model with a balance register and quantity-based allowance grants.
• For the new revenue behavior to apply, the balance register must be newly created. Existing subscriptions using the allowance-based model continue to recognize revenue using the current usage model, where revenue contracts are created upon billing.
• The subscription products in a single balance register should use the same currency and business unit. Avoid mixed-currency or mixed-business-unit balance register scenarios.