Customer To-Be Implications

Typical Revenue

• Subscriptions (monthly / annual)
• Usage-based (API calls, seats, storage)
• Add-ons & tiers

Unique Challenges

• Mid-term upgrades/downgrades → proration complexity
• Usage rating accuracy & late-arriving data
• Renewals ≠ re-quotes (must preserve history)
• ARR/MRR consistency across sales & finance

Typical Revenue

• Bundled plans (voice + data + content)
• Usage + overage charges
• Long-term contracts

Unique Challenges

• Massive product catalogs & dependencies
• Real-time usage mediation
• Frequent amendments at scale
• High-volume billing & dispute handling

Typical Revenue

• Configured products (BOM-driven)
• One-time + service contracts
• Milestone or delivery-based billing

Unique Challenges

• Complex product configuration rules
• ERP-led fulfillment (Salesforce not system of truth)
• Partial shipments → partial billing
• Revenue tied to delivery acceptance

Typical Revenue

• Equipment + consumables
• Service & maintenance contracts
• Compliance-driven pricing

Unique Challenges

• Regulatory pricing constraints
• Contractual pricing by customer type
• Traceability & audit requirements
• Product recalls impacting revenue

Typical Revenue

• Metered consumption
• Long-duration contracts
• Index-based pricing

Unique Challenges

• Time-based rating complexity
• Price adjustments after consumption
• Massive usage volumes
• Retroactive billing corrections

Typical Revenue

• Fixed-price projects
• Time & materials
• Retainers

Unique Challenges

• Revenue recognition by milestones or effort
• Scope creep & change orders
• Forecasting vs actuals mismatch
• Blended billing models

Typical Revenue

• Premiums, fees, commissions
• Policy-based subscriptions

Unique Challenges

• Regulatory compliance & approvals
• Policy lifecycle ≠ sales lifecycle
• Adjustments, endorsements, refunds
• High sensitivity to data accuracy

Typical Revenue

• Volume-based pricing
• Contracts & replenishment
• Promotions

Unique Challenges

• Price overrides & exceptions
• High order velocity
• Returns & credits
• Margin erosion visibility

Typical Revenue

• Subscriptions (monthly / annual)
• Usage-based (API calls, seats, storage)
• Add-ons & tiers

Unique Challenges

• Mid-term upgrades/downgrades → proration complexity
• Usage rating accuracy & late-arriving data
• Renewals ≠ re-quotes (must preserve history)
• ARR/MRR consistency across sales & finance

Typical Revenue

• Bundled plans (voice + data + content)
• Usage + overage charges
• Long-term contracts

Unique Challenges

• Massive product catalogs & dependencies
• Real-time usage mediation
• Frequent amendments at scale
• High-volume billing & dispute handling

Typical Revenue

• Configured products (BOM-driven)
• One-time + service contracts
• Milestone or delivery-based billing

Unique Challenges

• Complex product configuration rules
• ERP-led fulfillment (Salesforce not system of truth)
• Partial shipments → partial billing
• Revenue tied to delivery acceptance

Typical Revenue

• Equipment + consumables
• Service & maintenance contracts
• Compliance-driven pricing

Unique Challenges

• Regulatory pricing constraints
• Contractual pricing by customer type
• Traceability & audit requirements
• Product recalls impacting revenue

Typical Revenue

• Metered consumption
• Long-duration contracts
• Index-based pricing

Unique Challenges

• Time-based rating complexity
• Price adjustments after consumption
• Massive usage volumes
• Retroactive billing corrections

Typical Revenue

• Fixed-price projects
• Time & materials
• Retainers

Unique Challenges

• Revenue recognition by milestones or effort
• Scope creep & change orders
• Forecasting vs actuals mismatch
• Blended billing models

Typical Revenue

• Premiums, fees, commissions
• Policy-based subscriptions

Unique Challenges

• Regulatory compliance & approvals
• Policy lifecycle ≠ sales lifecycle
• Adjustments, endorsements, refunds
• High sensitivity to data accuracy

Typical Revenue

• Volume-based pricing
• Contracts & replenishment
• Promotions

Unique Challenges

• Price overrides & exceptions
• High order velocity
• Returns & credits
• Margin erosion visibility

What it is

• High-volume, low-touch, fast close

Typical Strategy

• Fixed pricing
• Minimal negotiation
• Self-service or inside sales

Revenue Cloud Implications

• Simple catalog
• Minimal approvals
• Strong automation & speed

Common Industries

• SMB software
• B2B supplies
• eCommerce

What it is

• Diagnose → propose → tailor

Typical Strategy

• Configured solutions
• Negotiated pricing
• Longer sales cycles

Revenue Cloud Implications

• Guided selling
• Complex configuration rules
• Approval workflows

Common Industries

• Manufacturing
• B2B SaaS (mid-market)
• Professional services

What it is

• Sell outcomes, not products

Typical Strategy

• Bundled offerings
• ROI-justified pricing
• Multi-stakeholder buying

Revenue Cloud Implications

• Dynamic bundles
• Flexible pricing logic
• Strong quote versioning

Common Industries

• Enterprise software
• Systems integrators
• Telecom

What it is

• Ongoing relationship, not one-time sale

Typical Strategy

• Recurring charges
• Land → expand → renew
• Upsell over time

Revenue Cloud Implications

• Proration & amendments
• Renewal automation
• Lifecycle visibility

Common Industries

• SaaS
• Media
• Services retainers

What it is

• Pay for what you use

Typical Strategy

• Metered pricing
• Variable invoices
• Predictive forecasting

Revenue Cloud Implications

• Usage ingestion
• Rating engines
• Post-period billing

Common Industries

• Cloud platforms
• Utilities
• APIs

What it is

• Few deals, very high value

Typical Strategy

• Custom contracts
• Heavy negotiation
• Legal & finance involvement

Revenue Cloud Implications

• Non-standard pricing
• Contract governance
• Tight auditability

Common Industries

• Defense
• Enterprise IT
• Infrastructure

What it is

• You sell through others

Typical Strategy

• Deal registration
• Margin protection
• Incentives & rebates

Revenue Cloud Implications

• Partner pricing
• Split revenue visibility
• Contract alignment

Common Industries

• Manufacturing
• Enterprise software
• Distribution

What it is

• Product sells itself

Typical Strategy

• Freemium / trials
• In-app upgrades
• Low sales involvement

Revenue Cloud Implications

• Self-service quoting
• Automated conversion
• Usage → subscription handoff

Common Industries

• SaaS startups
• Developer platforms

What it is

• Long-term account ownership

Typical Strategy

• Master agreements
• Multiple deals per account
• Cross-sell & renewals

Revenue Cloud Implications

• Contract hierarchies
• Account-level pricing
• Amendment discipline

Common Industries

• B2B services
• Large enterprises

What it is

• Sold once, delivered once

Examples

• Hardware
• Licenses (perpetual)
• Setup / installation fees

Key Characteristics

• No term
• No renewals
• No proration

Revenue Impact

• Revenue at delivery / invoice

What it is

• Access over a defined period

Examples

• SaaS licenses
• Maintenance contracts
• Support plans

Key Characteristics

• Start & end date
• Auto or manual renewal
• Amendable mid-term

Revenue Impact

• Recognized over time

What it is

• Pay for what is consumed

Examples

• API calls
• Storage
• Energy usage

Key Characteristics

• Metered
• Variable charges
• Often billed in arrears

Revenue Impact

• Recognized as usage occurs

What it is

• Combination of fixed + variable

Examples

• Base subscription + overages
• Platform fee + per-transaction cost

Key Characteristics

• Mixed billing rules
• Requires rating logic

Revenue Impact

• Split recognition logic

What it is

• Multiple products sold as one

Examples

• Software suite
• Telecom plans

Key Characteristics

• Parent–child relationships
• Optional or mandatory components

Revenue Impact

• Allocation across components

What it is

• Product defined at sale time

Examples

• Custom machinery
• Build-to-order solutions

Key Characteristics

• Rules & dependencies
• BOM or attribute driven

Revenue Impact

• Often delivery-based

What it is

• Human or effort-based work

Examples

• Consulting
• Implementation
• Training

Key Characteristics

• Time or milestone driven
• Scope can change

Revenue Impact

• Milestone or effort-based recognition

What it is

• Rights rather than deliverables

Examples

• Warranties
• SLAs
• Entitlements

Key Characteristics

• Tied to contract
• Impacts support & service

Revenue Impact

• Over contract duration

What it is

• Commercial corrections

Examples

• Discounts
• Credits
• Penalties

Key Characteristics

• Non-physical
• Often approval-heavy

Revenue Impact

• Adjusts net revenue

What it is

• Intangible, instant delivery

Examples

• Digital content
• Tokens / credits

Key Characteristics

• Immediate fulfillment
• Usage or access based

Revenue Impact

• Immediate or usage-based

What changes

• Values inside a product (size, tier, capacity)

RLM Mechanics

• Attributes + constraints
• Pricing formula references attribute values
• Single product → single subscription/charge

Lifecycle

• Attribute values are locked at order
• Amendments change values, not structure

Example

“Storage = 500 GB”
“Users = 100”

What changes

• Nothing at runtime

RLM Mechanics

• Fixed parent–child structure
• Mandatory components predefined

Lifecycle

• Predictable downstream objects

What changes

• Which products exist in the quote/order

RLM Mechanics

• Rule-based inclusion/exclusion
• Conditional components
• Optional & mutually exclusive children
• Child products are real SKUs

Lifecycle

• Each child creates its own order items
• Separate subscriptions / charges possible
• Revenue allocation required

Characteristics

• Required for all products
• Acts as the “base price” reference
• No customer-specific pricing
• No currency overrides unless multi-currency enabled

Use Case

• Internal reference
• Default for quotes when no custom price book is selected

Architect Note

Standard price is mandatory — all other price books derive from it.

Characteristics

• Can override standard price
• Assigned to accounts or quotes
• Can be active or inactive
• Supports multiple currencies

Use Case

• Account-specific pricing
• Channel / partner pricing
• Promotions or temporary discounts

Architect Note

Multiple custom price books can exist for the same product; quote must reference the right one.

Use Case

• Historical deals
• Phased-out products

Architect Note

• Inactive price books cannot be used in new quotes , but existing orders retain references.

Characteristics

• Allows different prices for same product per currency
• Works with Salesforce multi-currency org
• Auto-converts if quote currency differs from price book currency

Use Case

• Global sales
• Localized pricing

Architect Note

• Always tie price book currency to quote currency to avoid mispricing

Characteristics

• Quantity thresholds
• Step or block pricing
• Applies per quote line

Use Case

• Discounts for bulk orders
• Subscription seat pricing

Architect Note

• Often implemented with price rules or CPQ block pricing tables , not pure price book lines

Characteristics

• Term-specific prices
• Supports renewals and amendments
• Can lock pricing for a subscription period

Use Case

• SaaS annual vs monthly billing
• Enterprise agreements

Architect Note

• Tightly integrated with Subscription and Order objects
• Misalignment breaks renewal and revenue recognition

Characteristics

• Custom margins / discounts per partner
• Optional visibility restrictions
• Supports rebates and incentive calculation

Use Case

• Indirect sales models
• Deal registration

Architect Note

• Quote must reference correct partner price book; otherwise CPQ pricing errors occur

Characteristics

• Limited time validity
• Overrides standard or custom price
• Often inactive after promotion

Use Case

• Holiday campaigns
• Marketing incentives

Architect Note

• Good practice: copy existing price book → modify → revert
• Avoid editing active price book for live deals

Characteristics

• Prices calculated at quote time
• Can include attribute-driven or dynamic bundles
• Supports region-specific or account-specific logic

Use Case

• Large enterprise with hundreds of SKUs
• Dynamic bundles and hybrid products

What it is

• Discount applied to individual products or quote lines

Characteristics

• Can be % or fixed amount
• Applied before taxes and fees
• Often tied to product, not account

Use Cases

• Limited-time SKU discounts
• Bulk order incentives per product

Technical Notes

• Configured on Quote Line Discount field
• Works with CPQ approval processes
• Impacts revenue allocation at line level

What it is

• Discount based on quantity purchased

Characteristics

• Step or block pricing
• Automatically applied based on thresholds

Use Cases

• Bulk purchase incentives
• Seat-based subscription pricing

Technical Notes

• Often implemented via Price Rules / Product Tiers
• Line-level discounts may vary for different tiers

What it is

• Discount tied to a specific customer or contract

Characteristics

• Overrides standard product pricing
• Can be % or fixed amount
• Persistent across multiple quotes

Use Cases

• Strategic accounts
• Master agreements with fixed margins

Technical Notes

• Use Account Price Books or Contract Price Rules
• Ensures consistent revenue recognition for all deals with that account

What it is

• Time-bound discount linked to a marketing campaign

Characteristics

• Often applied automatically via CPQ rules
• May include % off, fixed amount, or bundle deal

Use Cases

• Seasonal promotions
• Product launches
• Loyalty incentives

Technical Notes

• Typically implemented as Promotional Price Books or Quote Calculator Plugin logic
• Must have start/end dates and approval workflow

What it is

• Discount applied to bundled products

Characteristics

• Can be spread across children products
• Rules determine mandatory vs optional components

Use Cases

• Telecom plans (voice + data + content)
• Software suites

Technical Notes

• Must implement allocation logic for revenue recognition
• Dynamic bundles require careful rule setup to avoid mispricing

What it is

• Discount awarded based on past purchases, tenure, or loyalty points

Characteristics

• Often applied as line-item or order-level
• May be recurring

Use Cases

• Renewals
• Upsell / cross-sell deals

Technical Notes

• Typically implemented via CPQ price rules , not standard discount field
• Can integrate with ERP / loyalty system

What it is

• Discount requested by sales rep, approved by manager

Characteristics

• Overrides system defaults
• Often limited by approval matrix (percentage, threshold, role)

Use Cases

• Competitive bid situations
• Exceptions outside standard pricing

Technical Notes

• Must enable Discount Approval Workflow
• Records must be auditable for compliance

What it is

• Applied if customer pays early or prepays for subscription term

Characteristics

• Often % of invoice
• Linked to invoice or order, not product

Use Cases

• Annual subscription prepay
• Early settlement incentives

Technical Notes

• Typically handled as Order/Invoice adjustment
• Must reflect accurately in Revenue Recognition

What it is

• Discount realized after billing or as credit

Characteristics

• Applied at invoice or settlement stage
• Can be one-time or recurring

Use Cases

• Volume rebate programs
• Channel incentive payments

Technical Notes

• Must post via Adjustment/Negative line item
• Revenue recognition may be delayed

Core Idea

• Single delivery, invoiced immediately

Characteristics

• Order created per quote
• Full invoice generated once
• No subscription or recurring revenue

Use Cases

• Hardware or physical product sales
• Professional services billed per project

RLM Notes

• Order → Invoice → Revenue recognition occurs immediately
• Simple lifecycle, minimal amendments

Core Idea

• Represents a subscription with recurring billing

Characteristics

• Order creates subscription record
• Term defined (monthly, annual, custom)
• Renewal handled automatically or manually

Use Cases

• SaaS licenses
• Maintenance contracts
• Support plans

RLM Notes

• Revenue recognition spreads over subscription term
• Amendments update subscription line items (proration logic applies)

Core Idea

• Existing subscription/order is modified mid-term

Characteristics

• Upgrade / downgrade
• Add-on or removal of products
• Mid-term price changes

Use Cases

• SaaS seat increase/decrease
• Add new modules to existing subscriptions

RLM Notes

• Creates amendment order linked to original order
• Proration and revenue reallocation required

Core Idea

• Extend or continue subscription term

Characteristics

• Renewal can be auto or manual
• Same or adjusted pricing
• May trigger discount or loyalty rules

Use Cases

• Annual SaaS subscription renewal
• Maintenance contract extension

RLM Notes

• Renewal order generates new subscription term
• Revenue recognition continues seamlessly

Core Idea

• No fixed term; continuous billing until cancellation

Characteristics

• Subscription rolls indefinitely
• Billing occurs periodically
• Cancellation triggers termination

Use Cases

• Cloud platforms with pay-as-you-go plans
• Digital content subscriptions

RLM Notes

• Lifecycle driven by billing cycles and cancellation event
• Revenue recognition occurs continuously

Core Idea

• Multiple products delivered as a single order

Characteristics

• Parent-child order items
• Allocation of revenue across child products
• May include mix of one-time and subscription items

Use Cases

• Telecom packages (voice + data + device)
• Software suites + support

RLM Notes

• Revenue allocation rules required
• Amendments to bundle may create multiple child amendments

Core Idea

• Order originates from a partner or reseller

Characteristics

• Partner-specific price book
• Margin or rebate tracking required
• Partner approval or registration may be needed

Use Cases

• Indirect sales
• Distributor-managed regions

RLM Notes

• Order must link partner, quote, and subscription
• Revenue may be split between partner and company

Core Idea

• Revenue recognized upon delivery of milestones

Characteristics

• Order may create multiple invoices over time
• Product/service delivered in phases
• Billing linked to milestone completion

Use Cases

• Consulting or implementation projects
• Complex equipment delivery

RLM Notes

• Milestone triggers revenue recognition
• Amendments can adjust remaining deliverables

Core Idea

• Order triggers billing based on consumption

Characteristics

• Subscription exists
• Usage data feeds invoice
• Overages handled as adjustments

Use Cases

• Cloud computing resources
• Utilities, API calls, metered SaaS

RLM Notes

• Usage ingestion critical
• Revenue recognition aligns with consumption period

Core Idea

• Contract has a defined start and end date .

Characteristics

• Pricing, products, and terms locked for the contract term
• Renewals are explicit
• Amendments may require new order or addendum

RLM Impact

• Subscription aligns with contract term
• Revenue recognition spreads over term
• Contract ID linked to all orders and invoices

Use Cases

• Annual SaaS agreements
• Maintenance contracts

Core Idea

• No fixed end date; continues until canceled.

Characteristics

• Automatic renewals unless terminated
• Billing occurs periodically (monthly, quarterly, etc.)

RLM Impact

• Subscription runs indefinitely
• Revenue recognition continuous per billing period
• Termination event triggers subscription/order closure

Use Cases

• Cloud platforms with ongoing usage
• Digital content subscriptions

Core Idea

• Contract tied to specific project deliverables or milestones .

Characteristics

• Revenue recognized per milestone
• Payment may be milestone-triggered
• Contract may cover multiple orders

RLM Impact

• Order items linked to milestone
• Revenue recognition occurs upon milestone completion
• Amendments possible if scope changes

Use Cases

• Implementation services
• Consulting or professional services
• Complex equipment delivery

Core Idea

• Contract defines subscription-based recurring services .

Characteristics

• Term-defined subscription
• Renewal may be automated or manual
• Pricing can be fixed or usage-based

RLM Impact

• Subscription object directly tied to contract
• Revenue recognition over subscription term
• Proration for mid-term amendments

Use Cases

• SaaS licenses
• Support and maintenance contracts

Core Idea

• Contract contains mix of product types (one-time, recurring, usage-based).

Characteristics

• Mixed billing (one-time + recurring + usage)
• Multiple order items under one contract
• Revenue allocation rules required

RLM Impact

• Order items may generate multiple subscriptions or revenue schedules
• Revenue recognition split across components
• Amendments affect only relevant items

Use Cases

• Enterprise software bundles
• Telecom or media plans (device + service + content)

Core Idea

• Contract signed with a partner or reseller , not the end customer.

Characteristics

• Partner-specific pricing, margins, rebates
• Orders originate from partner
• May include approval or deal registration rules

RLM Impact

• Orders, subscriptions, and invoices linked to partner account
• Revenue may split between partner and company
• Discount or rebate rules applied

Use Cases

• Indirect sales models
• Distributor-managed accounts

Core Idea

• Umbrella contract covering multiple sub-orders or agreements.

Characteristics

• Often used for long-term relationships
• Individual orders reference master contract
• Allows flexible delivery schedules

RLM Impact

• Orders and subscriptions inherit master terms
• Revenue recognition aligned with each sub-order
• Simplifies amendment/renewal management

Use Cases

• Large enterprise accounts
• Government / defense contracts

Core Idea

• Continuous contract with minimum consumption or spend commitment .

Characteristics

• Customer commits to a minimum quantity or spend
• True-up or true-down adjustments based on actual usage

RLM Impact

• Subscription tracks minimum vs actual usage
• Revenue recognition reconciled post-period
• Adjustments generate additional invoices or credits

Use Cases

• Cloud usage agreements
• API or data platform subscriptions

Core Idea

• Invoice generated once at delivery or order completion

Characteristics

• No recurring billing
• One invoice per order
• Revenue recognized immediately

Use Cases

• Hardware sales
• Professional services billed per project

RLM Configuration

• Order Items: One-time charge type
• Invoice Generation: Immediate
• Revenue Recognition: At invoice / delivery

Core Idea

• Periodic invoicing for subscription-based products

Characteristics

• Monthly, quarterly, or annual
• Automated invoice generation
• Linked to subscription term

Use Cases

• SaaS licenses
• Maintenance contracts
• Support services

RLM Configuration

• Order Items: Recurring charge type
• Invoice Schedule: Based on subscription period
• Revenue Recognition: Spread over subscription term
• Supports proration for mid-term changes

Core Idea

• Invoices generated based on actual consumption

Characteristics

• Metered usage or event-based
• Billing often in arrears
• May include overage charges

Use Cases

• Cloud compute or storage
• API calls
• Utilities or data services

RLM Configuration

• Usage Data: Imported via API or ETL
• Invoice Generation: Triggered per period (monthly, weekly)
• Revenue Recognition: Aligned with consumption

Core Idea

• Billing triggered by completion of project milestones

Characteristics

• One order can produce multiple invoices
• Each milestone has specific billing amount
• Revenue recognized per milestone

Use Cases

• Consulting services
• Implementation projects
• Complex equipment delivery

RLM Configuration

• Order Items: Linked to milestone events
• Invoice Schedule: Triggered upon milestone completion
• Revenue Recognition: Matches milestone completion

Core Idea

• Customer pays before service or subscription period

Characteristics

• May cover multiple periods upfront
• Can trigger discounts for early payment
• Revenue recognized over service period

Use Cases

• Annual SaaS subscription prepaid
• Managed services contracts

RLM Configuration

• Invoice Generation: Upfront, linked to subscription start/end
• Revenue Recognition: Amortized over term

Core Idea

• Continuous billing for ongoing subscriptions until cancellation

Characteristics

• No fixed end date
• Periodic invoices
• Revenue recognized per billing cycle

Use Cases

• Digital content subscriptions
• Cloud platforms with continuous usage

RLM Configuration

• Subscription: No end date
• Invoice Schedule: Automatic per billing cycle
• Revenue Recognition: Continuous

Core Idea

• Single invoice for multiple products, one-time + recurring

Characteristics

• Revenue allocated across bundle components
• Mixed invoice types on one document

Use Cases

• Telecom plans (device + service + content)
• Enterprise software suites

RLM Configuration

• Order Items: Parent-child relationship
• Invoice Generation: Consolidated or split per child
• Revenue Recognition: Allocation rules applied

Core Idea

• Invoices managed via partner or reseller

Characteristics

• Partner-specific price and margins
• Rebates or adjustments tracked
• Partner may receive invoice, or company bills directly

Use Cases

• Indirect sales
• Distributor-managed accounts

RLM Configuration

• Order → Invoice → Revenue Recognition: Linked to partner account
• Discount / rebate rules: Applied automatically

Core Idea

• Invoice generated to correct previous billing

Characteristics

• Negative or partial amount
• Can be recurring or one-time
• Adjusts net revenue

Use Cases

• Billing errors
• Customer credits
• Rebates or true-ups

RLM Configuration

• Invoice Type: Credit / adjustment
• Revenue Recognition: Adjusted to reflect net impact

Core Idea

• Recognize revenue fully at the time of invoice or delivery .

Characteristics

• One-time products or services
• No deferred revenue

Use Cases

• Hardware sales
• One-off professional services

RLM Configuration

• Order Item: One-time charge type
• Revenue Recognition Rule: Recognize 100% at invoice
• Invoice Timing: Immediate

Core Idea

• Recognize revenue over the subscription term (even if invoiced upfront).

Characteristics

• Fixed or recurring subscription revenue
• Revenue recognized evenly or per schedule

Use Cases

• SaaS licenses
• Maintenance contracts
• Support agreements

RLM Configuration

• Order Item: Recurring charge type
• Revenue Recognition Rule: Spread over term (daily, monthly, quarterly)
• Invoice Timing: Can be upfront or periodic
• Supports proration for mid-term changes

Core Idea

• Recognize revenue based on actual customer usage or consumption .

Characteristics

• Metered services
• Invoiced post-usage period
• Overage adjustments

Use Cases

• Cloud compute/storage
• Utilities or telecom
• API calls

RLM Configuration

• Order Item: Usage-based charge type
• Revenue Recognition Rule: Align with consumption period
• Integration: Usage data feeds CPQ/ERP

Core Idea

• Revenue recognized upon completion of a milestone or delivery event .

Characteristics

• Partial revenue recognized at each milestone
• Multiple invoices possible per order

Use Cases

• Implementation projects
• Consulting services
• Equipment delivery phased over milestones

RLM Configuration

• Order Item: Linked to milestone
• Revenue Recognition Rule: Triggered by milestone completion
• Invoice Schedule: Can be milestone-aligned

Core Idea

• Recognize revenue over future periods, regardless of invoice timing .

Characteristics

• Invoice upfront but revenue deferred
• Common in SaaS with prepayment or annual contracts

Use Cases

• Annual prepaid subscriptions
• Long-term service contracts

RLM Configuration

• Order Item: Recurring charge type
• Revenue Recognition Rule: Scheduled over subscription term
• Invoice Timing: Upfront or milestone-triggered

Core Idea

• Revenue recognized based on project progress or percentage completed .

Characteristics

• Used for long-term or project-based contracts
• Requires tracking project progress

Use Cases

• Construction contracts
• Consulting / implementation projects

RLM Configuration

• Order Item: Linked to project phases
• Revenue Recognition Rule: Recognize percentage based on progress
• Invoice Schedule: Can match revenue recognition or be separate

Core Idea

• Revenue split across multiple products or services in a bundle or contract.

Characteristics

• Parent product revenue allocated to children
• Can be one-time + recurring mix

Use Cases

• Software + support bundle
• Telecom + device + service bundle

RLM Configuration

• Order Items: Parent-child relationships
• Revenue Recognition Rule: Allocation per component (percentage or amount)
• Invoice Schedule: May be consolidated or per child

Core Idea

• Revenue recognized periodically until asset termination or subscription cancellation .

Characteristics

• No fixed term; revenue accrues continuously
• Supports continuous billing cycles

Use Cases

• Cloud service subscriptions
• Streaming platforms

RLM Configuration

• Subscription: No end date
• Revenue Recognition Rule: Recognize per billing cycle
• Invoice Schedule: Continuous

Core Idea

• Adjust revenue post-invoice due to corrections, rebates, or returns .

Characteristics

• Negative revenue entries or reversals
• Adjustments linked to original order

Use Cases

• Billing errors
• Volume rebates
• Customer credits

RLM Configuration

• Invoice Type: Credit / adjustment
• Revenue Recognition Rule: Adjust original revenue allocation

Core Idea

• Asset represents a delivered product or service with no recurring revenue

Characteristics

• Single instance per order item
• Ownership transferred immediately
• No subscription attached

RLM Impact

• Asset created after order fulfillment
• Revenue recognized at delivery
• Minimal lifecycle tracking

Use Cases

• Physical products (hardware, machinery)
• One-off professional services

Core Idea

• Asset tied to a recurring subscription

Characteristics

• Asset “exists” for the duration of subscription
• May have start/end dates aligned with subscription
• Can track usage or entitlements

RLM Impact

• Subscription → asset mapping
• Asset termination triggers subscription closure
• Revenue recognition spread over subscription term

Use Cases

• SaaS licenses
• Maintenance agreements
• Software seats

Core Idea

• Asset consumed over time or by usage

Characteristics

• Metered or tracked usage
• May decrement quantity or units over time
• Can generate usage-based billing

RLM Impact

• Asset usage feeds invoice
• Revenue recognition aligns with consumption
• Integration with usage tracking systems required

Use Cases

• Cloud storage / API calls
• Utilities (water, gas, electricity)
• Managed service hours

Core Idea

• Asset can be upgraded, modified, or replaced mid-life

Characteristics

• Can change configuration or quantity
• Can trigger new subscription or order amendments
• May require proration for billing

RLM Impact

• Asset linked to amendment order
• Revenue recognition adjusted for changes
• Historical asset data preserved for audit

Use Cases

• Software seat upgrades
• Hardware add-ons or replacements

Core Idea

• Multiple assets delivered together as one logical unit

Characteristics

• Parent asset with child components
• Allocation rules for revenue
• Individual child assets may have separate lifecycles

RLM Impact

• Revenue allocation across child assets
• Amendments may affect only some child assets
• Subscription alignment varies per component

Use Cases

• Telecom plan (device + service + content)
• Enterprise software + support bundle

Core Idea

• Asset exists indefinitely until terminated

Characteristics

• Continuous billing or entitlement
• Cancellation event removes or deactivates asset
• May track ongoing usage

RLM Impact

• Asset tied to continuous subscription
• Revenue recognition occurs per billing cycle
• Lifecycle event triggers (cancellation, upgrade)

Use Cases

• Cloud platforms with continuous service
• SaaS or streaming subscriptions

Core Idea

• Asset represents access rights, not physical delivery

Characteristics

• May have start/end dates
• Drives service eligibility or SLA enforcement
• Can be linked to subscriptions or contracts

RLM Impact

• Asset enforces service entitlement
• Revenue recognition aligned with contract/subscription period
• Amendments extend or reduce entitlement

Use Cases

• Software licenses
• Support or warranty entitlements
• Premium feature access

Core Idea

• Asset tracked through multiple events over time

Characteristics

• Can have scheduled maintenance or service events
• Status tracked (active, in repair, retired)
• May trigger recurring revenue or service charges

RLM Impact

• Asset object stores lifecycle history
• Revenue recognition tied to service events
• Amendments or renewals may generate new revenue

Use Cases

• Medical devices with service contracts
• Industrial equipment maintenance
• Vehicle fleets