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.



What's Changed


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.

17 JAN 2017

Initial Document Creation


This guide outlines the information you need to know about the new cloud service Oracle Revenue Management Cloud, which is an automated revenue management solution that enables you to address the accounting standard for Revenue from Contracts with Customers. Revenue Management provides a configurable framework to automate the identification and creation of customer contracts and performance obligations, their valuations, and the resulting accounting entries, with the ability to recognize revenue over time or at a point in time. Revenue Management also provides an option to calculate or load and manage standalone selling prices. Each section includes a brief description of the feature, the steps you need to take to enable or begin using the feature, any tips or considerations that you should keep in mind, and the resources available to help you.

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Release Feature Summary

The table below offers a quick view of the actions required to enable each of the Release 12 features.

Action Required to Enable Feature


Automatically Available

End User Action Required

Administrator Action Required

Oracle Service Request Required

Oracle Revenue Management Cloud

Revenue Management Cloud Coexistence

Establish and Manage Observed Standalone Selling Prices

Ensure Automated Efficient Compliance with ASC 606 and IFRS 15

Automated Accounting for Customer Contracts and Performance Obligations

Automatically Create Implied Obligations

Add a line item to an accounting contract or performance obligation

Iterative Modeling During Transition Period to Adoption

Revenue Management Work Area

Audit and Report

Oracle Revenue Management Cloud

Revenue Management Coexistence

Revenue Management enables automation of end-to-end revenue compliance and revenue recognition processes for your enterprise. Oracle E-Business Suite (EBS) products use the coexistence solution for integration with Revenue Management to bring in source document revenue lines from upstream sales cycle systems. Reference data, such as customers and inventory items, are synchronized between EBS and Revenue Management.

The coexistence feature enables you to deploy 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.

Correct Contract Document Errors in Spreadsheet

Summary sheet of the spreadsheet

Correct Source Document Errors worksheet

Establish and Manage Observed Standalone Selling Prices

Calculate the 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, and recalculate and establish or approve the observed standalone selling prices.

Upload standalone or selling prices in bulk using spreadsheets.

At contract inception Revenue Management allocates the total expected consideration to the performance obligations in an accounting contract using the relationship of the total transaction prices to the total standalone or estimated selling prices.

  1. Manage Observed Standalone Selling Prices
    1. Standalone sales are categorized into sets (observed price sets) based on item, currency, unit of measure, and pricing dimension value
    2. The Calculate Observed Standalone Selling Prices program calculates observed standalone selling prices.
  2. Establish Observed Standalone Selling Prices
    1. The Revenue Management work area displays any calculated observed standalone selling prices which have not yet been established. They can be established (approved), investigated, marked as valid, marked as invalid, or discarded by the revenue manager or revenue analyst.
    2. Observed standalone selling prices can be marked ‘Do Not Establish’ to exclude them from use when allocating the transaction price across performance obligations in an accounting contract.
  3. Create Standalone Selling Prices
    1. Standalone Selling Prices (SSP) or Estimated Selling Prices (ESP) can be uploaded through the Create Standalone Selling Prices spreadsheet.
    2. This process assumes that the SSPs or ESPs are approved offline and hence the prices uploaded are considered to be established.
    3. This spreadsheet is launched from the Standalone Selling Price Profile setup.
  4. Manage Standalone Selling Prices
    1. The Manage Standalone Selling Prices spreadsheet in the Revenue Management task pane is used to review and compare SSPs and ESPs.
    2. You can edit manually uploaded SSPs and ESPs from this spreadsheet if these have not yet been used in the allocation process.

Ensure Automated Efficient Compliance with ASC 606 and IFRS 15

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

The following screen capture illustrates the feature.

Edit Customer Contract page

Tips and Considerations

Automated Accounting for Customer Contracts and Performance Obligations

Revenue Management can 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.

Accounting occurs at the performance obligation level, which means that account balances are maintained and reported at the performance obligation level. The difference in the selling price and the allocated amount is tracked in a Discount account at the contract level.

Revenue for performance obligations will be recognized in the ledger currency. Any exchange rate variance will be tracked in a separate account called the Price Variance Account.

The following screen captures illustrate the feature.

Accounting of Contract from the Customer Contract page

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.

The following screen captures illustrate the feature.

Customer Contract page with Implied Performance Obligation (Number 2078)

Edit Implied Performance Obligation Template – Promised Details

Edit Implied Performance Obligation Template – Included Conditions

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.

Use the File-Based Data Import (FBDI) to add a line item using one of the following methods:

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

The following screenshots illustrate the feature and its benefits.

You can easily upload new lines through the Revenue Basis Data Import FBDI spreadsheet by adding new performance obligations or new promised details to an existing frozen contract.

FBDI spreadsheet listing attribute add to an existing contract with options ADD TO PO, CREATE NEW PO

New performance obligation number 104009 was added to an existing frozen contract

New promised detail number 2 was added to an existing performance obligation with a frozen contract

Steps to Enable

No steps needed to enable this feature.

Tips and Considerations

Key Resources

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 standards during the transition period until the new ASC 606 and IFRS 15 accounting standards go into effect.

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

Oracle recommends that you compare the results of your current accounting (ASC 605 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 the Oracle Essbase standalone dimensional database, 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

The Revenue Management work area enables you to focus on customer contracts of significance and contracts with exceptions to be resolved. Actionable information is displayed in the work area to prioritize the work.

The centralized work area contains three tabs:

The following screen captures illustrate the feature.

Work Area – Contracts Requiring Attention

Work Area – Observed Standalone Selling Prices Requiring Attention

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.

This BI Publisher report provides an easy and convenient way to pull such data in Excel or flat file format that will enable you to load the data into an analytical tool like Essbase. Drill down from the summary report to the Manage Customer Contracts page UI is also supported for further analysis.

Steps to Enable

Complete the following steps to enable Revenue Management:

  1. Define Common Revenue Configuration
    1. Manage Revenue System Options
    2. System Options in Oracle E-Business Suite Receivables for integration with Revenue Management
    3. Manage Source Document Types
  2. Define Revenue Contracts with Customers
    1. Manage Contract Identification Rules
    2. Manage Performance Obligation Identification Rules
    3. Manage Performance Obligation Templates
    4. Manage Implied Performance Obligation Templates
  3. Define Standalone Selling Prices
    1. Manage Revenue Pricing Dimension Value Sets
    2. Manage Revenue Pricing Dimension Structures
    3. Manage Revenue Pricing Dimension Assignments
    4. Manage Pricing Dimension Bands
    5. Manage Revenue Item Groups
    6. Manage Standalone Selling Price Effective Periods
    7. Manage Standalone Selling Price Profiles
    8. Manage Standalone Sales Pool Exclusion Rules


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