1. Subscription Management Questions and Answers
  2. How do I enable prospective accounting?

How do I enable prospective accounting?

The feature, Enable Prospective Accounting for Price Changes, Renewals, Amendments and Terminations, enables you to achieve prospective (immaterial changes) in Oracle Revenue Management (RMCS) for price changes (using pricing term/bill line adjustment/credit memo), renewals, amendments, and terminations. This means that when there's a contract modification, the remaining unrecognized, allocated revenue is reallocated across the existing open and new performance obligations. Recognized revenue is left untouched.

You can specify the type of accounting to be performed in RMCS when you:

  • Adjust bill lines
  • Create manual credit memos
  • Renew subscriptions
  • Amend subscriptions
  • Terminate subscriptions

In addition, when you adjust bill lines and create manual credit memos, you can also specify the revenue periods that will be impacted because of the bill line amount adjustment in a billing period.

For more information, see the article on My Oracle Support, Prospective Accounting for Subscriptions (Doc ID 2996838.1).