Setting Advanced Revenue Management (Revenue Allocation) Preferences
Advanced Revenue Management (Revenue Allocation) includes preferences that enable you to configure the way revenue is recognized in your account. These preferences appear only when the Advanced Revenue Management (Revenue Allocation) feature is enabled. For more information, see Enabling the Advanced Revenue Management (Revenue Allocation) Feature.
To set revenue recognition accounting preferences:
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Go to Setup > Accounting > Accounting Preferences.
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Select the accounting preferences you want for Advanced Revenue Management (Revenue Allocation). The related preferences are on the General subtab.
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Set preferences as desired, and click Save.
Advanced Revenue Management (Revenue Allocation) Only on General Subtab
These accounting preferences on the General subtab of the Accounting Preferences page are available only when the Advanced Revenue Management (Revenue Allocation) feature is enabled. For more information about accounting preferences, see Accounting Preferences.
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Preference |
Description |
|---|---|
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Enable Fair Value Range Checking |
Check this box to add the Fair Value Range Checking Policy dropdown list and its dependent fields to the fair value price record. The Fair Value Range Checking Policy is also added to the item revenue category record. This preference is checked by default. For more information, see Creating the Fair Value Price List. |
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Use Sales Price as Fair Value |
Check this box to use the sales price as the fair value when a matching record is not found in the fair value price list. When the sales price is used as the fair value, the value of Is VSOE defaults to Yes in the revenue element. Since kit components have no sales price, you must include fair value prices for kit components items even when this box is checked. For more information, see Auto-Expansion of Kit Items. Clear this box to use only the fair value price list. When no matching fair value price is found, you receive an error message. Then you must either define the fair value for the item or check the box for this preference. |
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Enable Contingent Revenue Handling |
Check this box to enable contingent revenue handling. When enabled, fields are added to item records and revenue elements for contingent revenue. This is a book-level preference. When Multi-Book Accounting is enabled, this preference appears on the accounting book record, not on the Accounting Preferences page. For more information, see Contingent Revenue Handling. |