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Need guidance on Time-Based / Period-Based Revenue Recognition for Subscription with Free Months

in Revenue Management 3 comments

Dear Oracle Team and Community Members,

We are currently reviewing our Subscription Management setup and would appreciate your guidance on a revenue recognition scenario that involves free months within the subscription term.

Scenario Overview

  • Subscription Term: 14 months
  • Billing: First 2 months are free ($0 invoices), followed by 12 regular invoices (monthly or yearly).
  • Revenue Requirement: Total revenue ($12,000) should be recognized evenly across all 14 months, including the 2 free months.

Our Objective

We need to confirm whether this time-based / period-based straight-line revenue recognition (covering both billed and free months) can be achieved through:

  • Standard configuration in RMCS, or
  • Integration between Subscription Management and RMCS (without using milestone-based recognition).
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