1. Implementing Subscription Management
  2. Enable Revenue Management Rules

Enable Revenue Management Rules

You can determine how subscription amendments, renewals, and pricing terms are accounted for in Revenue Management.

You can use the Revenue Management Rule for Amendment and Revenue Management Rule for Renewal attributes on the Edit Subscription Profile page when a subscription is amended or renewed. For each rule, you can either create new performance obligations under an existing revenue contract or create a new revenue contract in compliance with ASC606 regulations.

First set the profile option, Enable Addition to Revenue Contract, to Yes:

  1. Go to Setup and Maintenance and search for the Manage Administrator Profile Values task.
  2. Search for Profile Option Code, ORA_OSS_ADD_TO_REV_CONTRACT.
  3. Set the Profile Value to Yes at Site level.

When you renew a subscription, the value of the Revenue Management Rule field in the Renewal UI defaults based on the Revenue Management Rule for Renewal attribute in the Subscription Profile. When a subscription is automatically renewed, the same Subscription Profile attribute, Revenue Management Rule for Renewal, determines how the revenue contract is created.

Similarly, when you want to amend a subscription, the value of this field defaults from the Revenue Management Rule for Amendment attribute in the Subscription Profile.

When there's a pricing term in a subscription product, the Revenue Management Rule for Amendment attribute is used to decide if a new revenue contract should be created based on a new performance obligation.

Additionally, you must enable customizations in the Subscription Management and RMCS Integration algorithm:

  1. Go to Manage Algorithms in Subscription Configuration.
  2. Select the Subscription Management and RMCS Integration algorithm.
  3. Create new version of the algorithm. A new version should be created after selecting the 0th version of the algorithm.
  4. Click the Variables tab.
  5. Add a CustomizationFlag for the algorithm set its Default Expression value to true.
  6. Save and publish the algorithm.

Things to Remember

  • Algorithm changes are not sandbox-aware. Any changes you make are applicable outside of the sandbox, too.
  • When an environment is provisioned, the algorithm is in version 0. You must promote the algorithm to create a new version. This creates version 1 of the algorithm, which is the predefined algorithm, and you can't edit version 0.