Integration Overview

You can use Oracle Revenue Management to automate end-to-end revenue compliance and revenue recognition processes for your enterprise.

You can integrate Oracle Revenue Management with Oracle Subscription Management to ensure that the revenue schedule for a subscription is reflected accurately for revenue recognition. The integration also ensures that the revenue is recognized based on the new ASC 606 and IFRS 15 standards.

Here's what you can do with this integration:

• Automatically import subscription lines for subscription or usage-based products.

• Automatically import subscription changes as revisions from Subscription Management, which are treated as retrospective accounting contract revisions in Revenue Management.

• Import various performance events from Subscription Management to record initial performance events and satisfaction events in Revenue Management.

• Import subscription billing information from Oracle Account Receivables to Oracle Revenue Management to clear contract asset balances, record discounts or premiums, and record initial performance events.

To create customer contracts and performance obligations, you must import the subscription data into Revenue Management. Revenue is recognized for performance obligations as and when different subscription events occur. Here are the subscription events that initiate data transfer from Subscription Management to Revenue Management:

• Subscription activation

• Subscription amendment

• Subscription renewal

• Subscription termination

• Usage-based subscription billing

• Evergreen subscription billing

• Apply pricing term

This table explains how this integration handles different subscription scenarios:

Scenarios	Impact
Revenue contracts identification	Each subscription line is treated as a revenue contract. If the subscription line is part of a bundle, the complete bundle is treated as a revenue contract. You can modify this functionality by changing the Contract Identification rule.
Performance obligations and promised details identification	Each subscription product charge line is treated as a separate promised detail. By default, each subscription product is treated as an independent performance obligation. You can modify this functionality by changing the Performance Obligation Identification rule.
Revenue recognition for one-time, recurring, and usage charges	One-time charges are recognized on subscription activation. Recurring charges are recognized over the subscription duration. Usage charges are recognized as and when usage charges are billed. Usage charges result in a new revenue contract.
Subscription amendments, terminations, and renewals impact	Amendments and terminations result in a material modification or termination of the existing revenue contract. Renewals and amendments result in a new revenue contract.
Evergreen subscriptions impact on revenue	Evergreen subscriptions result in a new revenue contract for every billing cycle. Subscriptions with anniversary pricing result in a new revenue contract for every pricing term.
Standalone selling price calculation	The charge list price is used as the standalone selling price.
Additional charges and bill adjustments calculation	All additional adjustments and bill adjustments result in a material modification of the existing revenue contract.