Revision History

This document will continue to evolve as existing sections change and new information is added. All updates are logged below, with the most recent updates at the top.

The new functionality referenced in this document may not be immediately available to you if your organization has chosen not to receive optional monthly updates.  Rest assured you will receive the new functionality in the next quarterly update which is required and cumulative. Quarterly updates are applied in February, May, August, and November.

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Date

What's Changed

Notes

05 APR 2017

Add a Line Item to an Accounting Contract or Performance Obligation

New feature delivered in Update 4 (April), which will also be included in the May Quarterly update.

05 DEC 2016

Initial Document Creation

Revenue Management

Oracle Revenue Management Cloud is a centralized, automated revenue management solution that enables you to address the ASC 606 and IFRS 15 accounting standard Revenue from Contracts with Customers”. The solution provides a configurable framework to automate the identification and creation of customer contracts and performance obligations, and their valuations, and resulting accounting entries, with the ability to recognize revenue over time or at a point in time. The solution also provides an option to calculate or load and manage standalone selling prices.

Revenue Management Cloud Integration

Ensure compliance with ASC 606 and IFRS 15 by deploying a uniform, centralized, and comprehensive view of contracts with customers, unifying the details tracked in a variety of order management, retail point of sales, and billing systems. Automatically identify and generate customer contracts and performance obligations in Revenue Management based on data from multiple source systems.

Enable enterprises to easily integrate sales cycle data from a variety of source systems with Revenue Management.

Establish and Manage Standalone Selling Prices

Calculate observed standalone selling prices automatically by importing pools of historic standalone sales, categorized by the way your organization stratifies the data for the purpose of pricing. Review the system calculated values, make necessary changes, recalculate, and establish or approve the observed standalone selling prices.

Upload standalone or estimated selling prices and manage existing standalone selling prices in bulk using spreadsheets.

Revenue Management uses the standalone selling prices to automatically apply relative allocation of the transaction price across performance obligations within accounting contracts.

Ensure Automated, Efficient Compliance with ASC 606 and IFRS 15

Ensure compliance with the new accounting standards ASC 606 and IFRS 15 through the centralized Revenue Management repository that stores imported and processed sales cycle data. Revenue Management analyzes the data, and provides user-configurable contract identification and performance obligation identification rule engines for the system to automatically:

Automated Accounting for Customer Contracts and Performance Obligations

Automatically generate and post accounting entries to the contract asset, contract liability, revenue, discount and clearing accounts for customer contracts by evaluating the performance obligation satisfaction status and billing information of the customer contract.

Automatically Create Implied Obligations

Automatically create performance obligations in a customer contract that are implied in nature but not captured in any upstream application as a source document line. Define implied performance obligation rules to address this requirement.

Add a Line Item to an Accounting Contract or Performance Obligation

Handle variable consideration estimate corrections or contract modifications for existing frozen accounting contracts through improved File Based Data Import (FBDI) capabilities.

You now have more flexibility to perform accounting contract updates such as:

The line item can be added to an existing frozen contract using the Revenue Basis Import FBDI, in one of two ways:

Iterative Modeling During Transition Period to Adoption

Proactively contrast and compare sales cycle data between existing accounting standards and various proposals for compliance with the new accounting standard during the transition period until the new accounting standard for Revenue from Contracts with Customers comes into effect.

Accounting trial balances form an excellent point of comparison between the latest iteration of a compliance proposal, and previous proposals for ASC 605 and IAS 18 old rules accounting.

Oracle recommends that you compare the results of your current accounting (ASC605 and IAS 18) to each accounting iteration generated in Revenue Management (based on ASC 606 and IFRS 15) in an enterprise performance tool, such as Oracle Essbase, Oracle Planning and Budgeting Cloud, or Oracle Hyperion Planning.

Revenue Management is engineered to address ASC 606 and IFRS 15 so you can:

Revenue Management Work Area

Focus your efforts only on customer contracts of significance, and contracts with exceptions to be resolved by utilizing the Revenue Management work area.

The centralized work area contains three tabs:

Enable Revenue Management to automatically calculate standalone selling prices to also view standalone selling prices that are pending establishment.

Actionable information is pushed to the work area, eliminating the need for you to run multiple queries or search for data; you will know exactly how to prioritize your workload the moment you log into Revenue Management.

Audit and Report

Use the Revenue Contract Account Activity report in Revenue Management to review account balances by accounting contract and performance obligation to support audit processes and perform detailed analysis of various accounts.

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