Managing Performance Obligation Identification Rules in Oracle Revenue Management Cloud

What is a Performance Obligation Identification Rule? 

Once we know what the contract is and it has been created, and we have to identify what are the obligations in the contract? What are the promises we have made to the customer? Performance Obligation Identification Rule are rules used to group source document lines into performance obligations. The idea here, is to look for a common link between source document lines. What is that common link that is going to be used for grouping purposes? These can be things like a product or service descriptions. That's a good way of identifying these promises that we have made to the customer, which are synonymous with these performance obligations.

Oracle pre-defines three Performance Obligation rules, and you can define your own. You can use up to 90 extensible attributes, called Source Document Types Codes. Note that these three predefined rules are not updateable.

For performance obligation identification rules, you are more than likely to use Line Attributes instead of Header Attributes. When you're bringing that data over to Revenue Management, some of it is going to be associated with the header of a document, like a sales order or a contract, and some of the data is going to be related to the lines of that document. So for the performance obligation identification rules, It's probably going to be associated with lines, because the Lines will identify the promises that needs to be fulfilled.

Similar to Contract Identification Rules, Performance Obligation Identification Rules uses prioritization as well. You specify a priority in terms of a Number and Revenue Management is going to execute these rules based on the order of the priority.

Below is a quick demonstration of creating Performance Obligation Identification Rules in Oracle Fusion applications:

You can also add Reference Information for Contracts and Performance Obligations Identification Rules. Reference Information for Contracts and Performance Obligations can be used to populate important information from other systems (such as EBS, non-Oracle systems or other Fusion Cloud applications), into an extensible attribute. It can be the quote number, a Purchase Order number or any other information that may help end-users search for contracts.

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