Supported Scenarios and Lifecycle Events
The feature supports allowance usage across subscription products and subscriptions through a shared balance register. Allowances granted by different products can contribute to a common allowance pool, while consuming products draw down from that pool.
Supported Scenarios
These allowance based usage scenarios are supported:
- Allowances with one or more subscriptions
- One or more subscription products
- Recurring allowance grants
- Top-up allowance grants
- Rollover periods
- Overage creation in RMCS
- Shared balance registers across subscription products and subscriptions
Supported Lifecycle Events
The revenue recognition behavior is supported across these subscription lifecycle events:
- Subscription close
- Subscription amendment
- Proration
- Allowance adjustments
- Usage corrections
- Re-rating
Close Processing
For subscription close actions, recurring allowance grants follow the normal recurring revenue close behavior.
One-time allowance grants may require reversal of the granted quantity through a negative satisfaction event.
Usage Corrections and Re-rating
Usage corrections and re-rating are supported.
After overage revenue is reported, it remains tied to the original related performance obligation. This keeps downstream RMCS adjustments consistent.
Benefits
Here are the business benefits for this feature:
- Improves ASC606 alignment for usage-based subscriptions.
- Connects overage revenue to the correct performance obligation.
- Supports flexible monetization models with base allowances, top-ups, rollovers, and overage usage.
- Reduces manual revenue accounting effort.
- Improves revenue accuracy for top-ups.
- Supports pooled allowance models.
- Preserves existing behavior for out-of-scope scenarios.
- Improves auditability and traceability.
- Enables more accurate handling of subscription lifecycle events.