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Variable Consideration on Revenue Contract for Usage Items from Subscription Management

in Revenue Management

Summary: Hello,

When a subscription from OSS is interfaced to RMCS, under ASC 606 it estimates the expected consideration at inception for the sale/subscription. This amount is reflected for fixed recurring and one time fee items, but for usage items, it is is reflected as $0. I don't believe this in line with ASC 606 as an estimate based on historical data (or something else) should be required up front and then adjusted or trued up later.

How does Oracle recommend this be handled? (Are we able to add a revenue contract line to the contract and if so, how does updating the actual usage get reflected? Should we be tracking this manually and doing and adjustment of some sort?)

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