Service Start Date as Initial Performance Event

The service start date can be used as an Initial Performance Event, in accordance with ASC 606 and IFRS 15 standards. Organizations can now record right-to-bill entries for service-related performance obligations on the actual service commencement date, rather than waiting for billing or satisfaction events. 

Previously, accruals could only be triggered by billing or satisfaction events. With this enhancement, users can populate the new Initial Performance Event date attribute with the service start date, or any other representative date, designating it as the event date. The system determines the accrual date by identifying the earliest of the Initial Performance Event date, billing event, or satisfaction event across all relevant promises within the performance obligation. 

Revenue Data Import Template – FBDI

The Revenue Data Import Template for loading third-party data has been updated to include a new date attribute, Initial Performance Event Date, within the VRM_SOURCE_DOC_LINES tab. This enhancement allows users to specify any date for recording the performance obligation’s accrual entry on the balance sheet. 

Revenue Data Import Template

Revenue Data Import Template

Edit Customer Contract Page

The Line Reference Details tab that displays order and service line information, has been updated to include the Initial Performance Event Date attribute for each line. Any changes to this date are also captured and displayed within the tab.

Edit Customer Contract Page - Line Reference Details

Edit Customer Contract Page - Line Reference Details

During processing, the application evaluates the interfaced Initial Performance Event date, billing, and satisfaction events and selects the earliest of these dates to determine the accrual entry date. In this example, the Initial Performance Event date was set to the service plan start date, October 4, 2025, which was the earliest date for the lines within the performance obligation and was used as the accrual date.

Contract Activity Detail

Contract Activity Detail

The business benefit of this feature ensures compliance with accounting standards by allowing accrual recognition when one party acts, such as at service commencement. It reduces manual effort, improves financial reporting accuracy, and delivers greater operational and regulatory alignment for Oracle Subscription Management and Revenue Management customers.

Steps to Enable and Configure

You don't need to do anything to enable this feature.

Tips And Considerations

  • The Initial Performance Event Date value on a source document line (order or subscription) cannot be earlier than the source document (order/subscription) date.
    • If this occurs, the record will generate an error that is sent to the Correct Customer Contracts Data worksheet for correction and will be excluded from further processing.
    • To avoid having to discard and recreate the contract to include the line within the same contract, set the Line Handling option in Manage System Options for Revenue Management to Reject Contract. The application will suspend processing of the source document and its lines until all errors across lines are resolved.
    • Alternatively, ensure that the Initial Performance Event Date provided is on or after the source document date before submitting the data.
  • The initial performance event entry is based on the earliest date among the Initial Performance Event Date, billing event, or satisfaction event for all promises within the performance obligation.
  • The Initial Performance Event Date is a versioning attribute. If the date is changed by the upstream system on subsequent version lines, the application will use the revised date to re-derive the initial performance event date and compare it to the existing event. If the revised date is earlier, the date on the existing entry will be updated. Therefore, it is important to exercise caution when modifying this date on subsequent version lines.
  • If the Initial Performance Event Date on the original order or service line was incorrect and needs to be cleared and no billing or satisfaction events have yet been recorded for the performance obligation, you can process a version line with the Initial Performance Event Date set to NULL or Blank. During application processing, the accounting entry will be removed and will be reinstated once a subsequent valid event is processed.
  • Currently, if a billing or satisfaction is processed by the application with a date earlier than the existing initial performance event accounting entry for the performance obligation, the application will reverse the existing entry and create a new one as of the earlier event date. This behavior remains unchanged.
  • If the performance obligation is devolved and a version line for an underlying promise detail line has its Initial Performance Event Date set to a date that is earlier than or equal to the plan start date for the first performance obligation in the series, only the initial performance event accounting entry for the first performance obligation in the series will be updated. All subsequent initial performance event entries will remain unchanged and continue to be accounted for as of the first day of the month.
  • When using the integration with Oracle Subscription Management, the Initial Performance Event Date attribute is assigned a default value of NULL or Blank. If you want to use the product start date as the Initial Performance Event Date, collaborate with your system integrator/administrator to configure the Oracle Subscriptions mapper accordingly.

Key Resources

Refer to the Implementing Subscription Management collateral, Integrate Revenue Management section for more details on how to modify the Service Mappings to populate the Initial Performance Event attribute with the service's product start date. 

Access Requirements

No new access requirements.