Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2023-06-23
Concept: Alternate Contracts

Concept: Alternate Contracts

Revenue recognition rules Accounting Standards Codification (ASC) Topic 606 and International Financial Reporting Standard (IFRS) 15 require you to present comparative financial statements. You can replicate your customer contracts as alternate contracts. Alternate contracts enable you to model your revenue based on the current standard or the new standard, for your business transition plan without altering your actual contracts.

Alternate Contract Business Process

You can manage your new and updated alternate contracts using the
Customer Contract Alternate Event
 business process to route for approval.

Alternate Linked Contracts

You can associate multiple related contracts with a single parent contract. With linked contracts, you can consolidate all of your revenue in a common currency, display it in a single report, and reallocate revenue across the linked contracts.
  • With fair value (FV) price lists, you can perform multiple-element revenue allocations through mass action using the
    Manage Alternate Customer Contract
     report.
  • Without FV price lists, access the
    Create Multiple-Element Revenue Allocation
     task to carve in or carve out your contract lines.

Alternate Book Codes

You can create alternate book codes using the
Maintain Book Codes
 task and book accounting from your alternate contracts. This accounting includes:
  • Reversal entries from the original contracts under ASC 605.
  • Accounting entries under ASC 606.

Alternate Contract Accounting

You can post journal entries by period using the
Manage Alternate Customer Contract
 report. You can select the original contract offset entries, the alternate contract entries, or both.