Revenue Elements Excluded from Reclassification
To exclude elements in a revenue arrangement from the carve in/carve adjustment during reclassification, set their Allocation Type to Exclude. You can set the default Allocation Type on the item record. For information, see Item Configuration for Advanced Revenue Management (Essentials) and (Revenue Allocation).
Changes on the item record do not affect revenue elements that have already been created. You can, however, change the Allocation Type for a revenue element after it has been created by editing the revenue element in the revenue arrangement. For information, see Editing Revenue Arrangements.
Negative elements from returns without a linked positive element automatically have the Allocation Type set to Exclude. For more information, see Revenue Allocation for Returns.
When elements are excluded, they are ignored during carve in/carve out and receive special handling in the other steps of the process. When you run the deferred revenue reclassification, the reclassification adjustments are affected in the following ways:
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Carve in/carve out adjustment – Excluded elements do not participate. Their carve out ratio is 0. Consequently, any billing or credit for these items stays in their own deferred revenue account and does not affect other elements.
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Foreign currency adjustment – Foreign exchange variance for each excluded element is calculated.
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Unbilled receivable adjustment – Excluded elements participate in this process.