Integrating Revenue Management and Salesforce Revenue Cloud

If you use both Revenue Management and Salesforce Revenue Cloud, you can integrate them using the Revenue Cloud Connector feature in Feature Console. By enabling the feature, your org is configured with a standard integration that lets you use Revenue Management to recognize revenue and cost against Salesforce orders. Recognition settings and templates are created that allow you to run recognition directly against your source objects (for example, to comply with ASC 605) or using revenue contracts (for example, to comply with ASC 606 and IFRS 15).

The integration creates recognition settings records for Salesforce objects in the following hierarchical structure:

Hierarchical Structure Used by the Integration with Salesforce Revenue Cloud

Hierarchy Level	Group
Primary Object	Order An order's Status must be Activated before eligible records at Level 2, Level 3, or Level 4 are included for recognition.
Level 2 Objects	Order Item An order product is included for recognition when either of the following is true: Its Charge Type is One-Time Its Charge Type is Recurring. The exception to this is when its Charge Type is Recurring with Billing Frequency of Invoice Plan and Billing Type of Arrears. In this case revenue and cost is recognized on the invoice line.	Invoice An invoice's Status must be Posted and its related order must be Activated before eligible records at Level 3 or Level 4 are included for recognition.
Level 3 Objects	Usage Summary Usage summaries are not included for recognition. If you want to use Usage Summary as a source object, see Using Usage Summary as a Source Object.	Invoice Line An invoice line is included for recognition when either of the following is true: Its Charge Type is Usage Its Charge Type is Recurring with Billing Frequency of Invoice Plan and Billing Type of Arrears.	Credit Note A credit note's Status must be Posted and its Source Invoice field must be populated before its lines are included for recognition.
Level 4 Objects			Credit Note Line A credit note line is included for recognition when the credit note's Status is Posted and Source Invoice field is populated.

The resulting recognition transactions can include transaction lines generated from order products, invoice lines, credit note lines, and usage summaries (if used).

For full details about the fields, recognition settings, and recognition templates that are created when you enable the feature, see Metadata Changes when Enabling Revenue Cloud Connector. For information about enabling the feature, see Enabling Revenue Cloud Connector.

Notes:

The logic that determines whether a record is included for recognition is set on the Include in Revenue Recognition field on the appropriate object. This field is unmanaged so you can amend the logic if necessary.

The Revenue Cloud Connector adds a Legal Entity field to the Order object. You must ensure that the Legal Entity field is populated on your orders. This is necessary for Revenue Management to group its transaction lines correctly so that all the lines on a recognition transaction are for the same legal entity. (This is in addition to populating the Legal Entity field on your order products which is required by Salesforce.)

Revenue Contracts for Revenue Cloud

If you intend creating revenue contracts for Salesforce orders, we recommend you enable the Revenue Contracts for Revenue Cloud feature. This feature configures a standard setup to create revenue contracts for Salesforce orders via engagements.

When you have enabled the Revenue Contracts for Revenue Cloud feature, activating an order causes an engagement to be created. You can then create a revenue contract for the engagement. The revenue contract will include performance obligations for any order products, invoice lines, credit note lines, and usage summaries that were assigned a template for use with revenue contracts. If the order's contract is later amended, order amendments are linked to the same engagement so that performance obligations for the order amendments are linked to the same revenue contract as the original order.

For more information, see Enable Revenue Contracts for Revenue Cloud.