Need Solution for Subscription Scenario with Free Period and Extended Revenue Recognition
Details:
We have a business requirement that needs to be addressed in Oracle Subscription Management / Revenue Management. The scenario is as follows:
- Subscription Term: 12 months (contract value: 24,000 at 2,000/month).
- Start Date: 15-September-2025.
- Free Period: First 2 months (no billing to the customer).
- Billing Plan: 12 invoices of 2,000 each → total AR = 24,000.
- Revenue Plan Requirement: Revenue should be recognized evenly across 14 months (2 free + 12 billed), i.e., ~1,714.28 per month.
- Expected End of Revenue Schedule: 15-November-2026.
Issue / Gap:
By standard setup, the system generates 12 invoices (2,000/month) and recognizes revenue across the 12 billing months only. However, our requirement is to extend revenue recognition across 14 months, including the initial free period, while still keeping AR aligned with the 12 invoices.
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