Revenue Recognition in Oracle Revenue Management Cloud

Revenue is Recognized when performance obligations are satisfied, either by Point In Time or Over Time. Together with the Satisfaction Measurement Model and Satisfaction Method, they drive when the revenue is recognized point int time or over time.

There are three options on how to recognize revenue:

  1. Quantity - Usually used for Products
  2. Period - Usually used for Products
  3. Percent - Usually used for Services



You can see that you can go with the option "Require Complete" or "Allow Partial". If it's a service that we are providing, like a warranty service that's going to extend for a number of years, we measure that performance obligation over time. As time goes by, we recognize the revenue. If we deliver physical products, we measure that performance obligation point in time. 

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