Oracle Financials Cloud: General Ledger 2017 Implementation Essentials — Question 38

In which two ways would you configure Satisfaction Method (SM) and Satisfaction Measurement Model (SMM) in Revenue Management to recognize revenue for performance obligations over time? (Choose two.)

Answer options

• A. by setting SM to "Requires Complete" and SMM to "Period"
• B. by setting SM to "Allow Partial" and SMM to "Percent"
• C. by setting SM to "Allow Partial" and SMM to "Period"
• D. by setting SM to "Requires Complete" and SMM to "Quantity"
• E. by setting SM to "Requires Complete" and SMM to "Percent"

Correct answer: C, E

Explanation

The correct choices are C and E because they appropriately align the SM and SMM settings for recognizing revenue over time. Option C allows for partial satisfaction, which is suitable for ongoing performance obligations, while option E's 'Requires Complete' with 'Percent' fits scenarios where revenue is recognized based on the completion percentage of the obligation. Options A, B, and D do not align as effectively with the requirement for ongoing revenue recognition.