Manage Revenue Scheduling Rules in Oracle Fusion Applications

What is a Revenue scheduling rule?

A Revenue scheduling rule (also known as "Performance Satisfaction Plan") is a rule that tells receivables how to allocate our revenue into the future. It can be that a revenue scheduling rule that tells receivables not to recognize revenue now, we are going to recognize the revenue manually in the future by processing a revenue adjustment.

To view or create a Revenue Scheduling Rule, Navigate to Functional Setup Manager, Pick on the “Financials” offering, search for the Task “Manage Revenue Scheduling Rule” or "Manage Performance Satisfaction Plans":

Provide a name of the rule, and a Revenue Scheduling Type. There is a checkbox to indicate if the Revenue Scheduling Rule will be Deferred or Non-Deferred. You would need to associate, the Scheduling Rule with a Reference Data Set. Reference Data Sets allow you to share configurations across multiple business units or keep them specific.

What is a Revenue Scheduling Type?

Revenue Scheduling Type (also called Performance Satisfaction Plan Types) indicate how the Revenue will be split. You can use four different performance Satisfaction Plan Types on Revenue Scheduling Rules:

1. Daily revenue rate, all periods - This means you are recognizing revenue on a daily basis. Use this type of Performance Satisfaction Plan if your organization has accounting rules with very strict revenue recognition requirements. This rule requires a start date and an end date. 
2. Daily revenue rate, partial periods. Used if there's a revenue that needs to be recognized partially for a period, then you have to prorate. This type of rule also needs start date and end date. 
3. Fixed schedule. This does not use days, instead it uses accounting periods. Now that accounting period can be a week, can be similar to a month, can be a quarter, depending on the Accounting calendar your organization uses. If you go with a fixed schedule, you would have to then provide percentages. For example if the period will be over three months, then you have to come in and specify how the revenue will be split, such as 30/30/40 or it can be 20/50/30. That's a mandatory attribute to populate how that revenue is going to be distributed across those periods, whatever the number of periods there are. 
4. Variable schedule. The revenue is going to be prorated over a number of periods, but those periods are not going to be fixed. So these will also require a start date.

What is the difference between Deferred and Non-Deferred?

Deferred means that you will have to recognize the revenue manually through adjustments and Non-deferred means that the revenue recognition schedule will be created for the invoice. Note that for Non-deferred, you would have to run the Recognize Revenue Program to be automatically generated a revenue schedule for invoices.

Check out the video below for a step-by-step demonstration on Creating Revenue Scheduling Rules in Oracle Fusion Applications:

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