Identify contracts

In this step, you create revenue accounting contracts corresponding to operational documents that are created on a back-end operational system.

Identify performance obligations

In this step, you identify the performance obligations included in each contract. You create performance obligations for items in the operational document and manage their relationships with one another.

Allocate the transaction price

In this step, you determine the total price by aggregating the pricing conditions passed from the back-end operational system, and then allocate the total price among the performance obligations.

Manage fulfillment of performance obligations

In this step, you recognize revenue for performance obligations as they are fulfilled.

Make revenue postings

In this step, you make postings to the general ledger regularly to reflect revenue-related transactions.