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Revenue recognition is an earning process

There are rules and regulations on how and when you canrecognize revenue

Under GAAP, there are four basic criteria:oEvidence of an arrangement exists (governing contract & PO

o!elivery has occurred (transfer title and ris" of loss

o#ee is $xed or determina%le (normal payment terms

oollection is pro%a%le (customer has a%ility to pay

There are several events that drive revenue ' delivery acceptance

cash receipts time %ound '

)ser de$ned revenue contingencies fair value analysis autoaccounting rules amortization methods*

+n Revenue ,llocation modules we can '

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)pload fair values (-.OE TPE E.P

+dentify arrangements and lin" transactions

,llocate revenue and post carve/outs to ,0R or 102

+n the revenue 3anagement module we can '

!e$ne release events to auto/release revenue from deferred

3anage contingenciesRevenue waterfall with real/time forecast

+ have also wor"ed on the Revenue +ntelligence piece for generating drilldown reports for real time revenue analytics*

The 4ows is ' RevPro has standard adapters for sales orders service

contracts invoices credit memos R3, orders ' the adapters extract data tothe revpro staging ta%les per de$ned schedule then the RevPro !ataollection runs and data gets collected to the RevPro system ' the RevPromodules perform the revenue calculation and output is passed %ac" to oraclee%s*

+n Rev Pro ' 5e have to $rst de$ne the #air -alue ' that can %e done via

3anual )pload or you can create a %atch from the #air -alue Template ' Thesystem collects historical data to derive fair value then a compliance chec" is

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performed you can then review the fair value output $nalize the fair valueand you can then $rm the fair value for allocation*

Once the fair value is allocated ' the data extract process "ic"s in ' and loadthe Rev Pro .taging ta%les ' you create a %atch from the arrangementtemplates ' the preprocessor runs ' data is collected ' data is then groupedand then the post processor runs if the transaction line is eligi%le for fairvalue then you assign the fair value to the transaction line and then therevenue allocation process "ic"s in ' if the line is not eligi%le for #air -alue

then you release the contingency which can %e done manually or ,utomaticthen the accounting schedule is %uilt and then the Transfer accountingprocess "ic"s o6 where the data is transferred to ,R or 12 module dependingon the re7uirement