Managing Performance Obligations

From the revenue contract detail page, you can click Manage Obligations to open a page where you can:

  • Add performance obligations
  • Link a performance obligation to a source record
  • Edit a performance obligation's SSP
  • Edit a performance obligation's Allocated Revenue
  • Change the template assigned to a performance obligation for recognizing revenue (and amortizing cost)

Whenever you edit an SSP or Allocated Revenue value, any other Allocated Revenue values that have not been overridden are blanked out because they are no longer correct; they will be recalculated upon save.

Note:

When you override the Allocated Revenue value on a performance obligation, you are effectively fixing that value instead of accepting the calculated value. The remaining revenue on the contract will be allocated across the other performance obligations that have not had their Allocated Revenue values overridden.

Adding Performance Obligations

To add a new performance obligation using the Manage Obligations button:

  1. Load the revenue contract that you want to edit, then click the Manage Obligations button. The Revenue Contract page opens. Any performance obligations already linked to the revenue contract are displayed in the grid.
  2. Click Add. A popup opens for you to select the source records you want to add to the performance obligation. See Select Source Records Fields for information about how to search for, and select, source records. Each source record will be linked to a separate performance obligation line item.
  3. When you are happy with the source records that are selected, click OK on the popup. A new row is added to the grid. The Source Records column displays the name of the source record derived from the controlling POLIClosed A performance obligation line item which is used to populate certain fields (such as Account and Description) on the parent performance obligation. A performance obligation might have separate controlling POLIs for revenue and cost values. and +<number> indicates how many other records were selected (if any).
  4. Select a template to use when recognizing revenue (and amortizing cost) for the new performance obligation. You can optionally enter a value in the Allocated Revenue field, or leave it blank to have this value calculated automatically. The SSP value is populated from the selected source records but can be overridden.
  5. Click Save. A POB number is generated automatically for the new performance obligation. Clicking Save also causes:
    • All performance obligation line items to be updated from their source records.
    • Each performance obligation to be updated from its controlling POLI for revenue or cost values (as appropriate).
    • Revenue to be allocated for the whole revenue contract.

You can click the icon in the Source Records cell to change the source records attached to a performance obligation, or to change the controlling POLI. But note that clicking on the source record name opens the source record in a new tab.

You cannot link a source record to more than one performance obligation line item.