Linked Performance Obligations
Some items that your company promises to deliver to your customer may not be explicitly included in the operational document. However, you may want to include them in the revenue accounting contract. In this case, you can configure Revenue Accounting to add those implicitly promised items as linked performance obligations, and specify which is the “leading” item of these linked items.
To indicate a leading-linked relationship, you can use the following configuration:
A performance obligation whose
Leading/Linked
attribute is set toLeading
.One or more performance obligations whose
Leading/Linked
attribute is set toLinked
.The “linked” performance obligations point to the “leading” performance obligation with the attribute
Leading Performance Obligation
.
Example
Your company promises to deliver a software product to a customer in exchange for a consideration. For each purchase, your company promises to deliver a technical service to make sure that the software is properly deployed. It is an important part of your company’s delivery, even though it is not explicitly listed as a line item in the sales order. In this case, the following performance obligations can be created to address this scenario:
Performance Obligation | Leading/Linked | Leading Performance Obligation | Sales Order Item |
|---|---|---|---|
001 - Software | Leading | None | Software License |
002 - Service | Linked | 001 - Software | None |