Revenue Reallocation for Revenue Arrangements

Revenue is reallocated automatically when revenue arrangements are updated if changes to the sources affect allocation. Source changes that affect allocation are adding or removing items and changing the amounts for items including changing the quantities or rates. Reallocation also occurs automatically when you combine revenue arrangements by merging them. For more information, see Updating Revenue Arrangements and Merging to Combine Revenue Arrangements.

When revenue is reallocated during revenue arrangement update or merge, revenue recognition plans must be updated. The revenue plan update may occur with the automatic revenue plan update process, or you can update revenue plans manually. For more information, see Updating Revenue Recognition Plans.

If reallocation fails, the error is logged on the Revenue Arrangement Message subtab. The Error column in the Allocation Detail is also populated for each revenue element with an allocation error. The Compliant box in the revenue arrangement header is cleared, and the Allocate button is available in view mode. Review the error messages and correct the problem. Then update the revenue allocation.

You can update revenue allocation for multiple revenue arrangements simultaneously or for individual revenue arrangements. For instructions, see the following topics:

Related Topics

Advanced Revenue Management (Revenue Allocation)
Fair Value and Allocation
Revenue Allocation for Returns
Allocation Detail Subtab Field Reference
Compliant Indicator for Revenue Arrangements
Contingent Revenue Handling
Residual Method and Two-Step Allocation

General Notices