Creating performance obligations

  1. Select Financials > Project Ledger > Setup > Project Setup.
  2. Click the Structure tab.
  3. Open a project structure and click the Hierarchy tab.
  4. Open a contract summary project and select Actions > Update.
  5. Click Contract Information.
  6. Click the Performance Obligations tab.
  7. Click Create.
  8. Specify this information:
    Performance Obligation
    Specify a description for the performance obligation.
    Transaction Price
    Specify the transaction price. The transaction price is the amount the entity allocates to the performance obligations identified in the contract. The transaction price represents the amount of revenue recognized as the performance obligation is satisfied.
    Fair Market Value
    Specify the fair market price. The fair market price is the amount the performance allocation would sell for as a stand-alone item.
    Selling Price
    Specify the selling price. The selling price is the amount invoiced to the customer for the performance obligation.
    Completed Date
    Specify the completed date.
  9. Click Save.