Your customer ships machines, and can recognize revenue for each machine after the machine has been delivered to a customer without waiting for…

The scenario requires recognizing revenue for each machine delivered, without waiting for the entire order to be fulfilled. This constitutes partial satisfaction. The "Allow Partial" Satisfaction Method (SM) enables this. Revenue is recognized based on the delivery of a discrete unit (a machine), which corresponds to the "Quantity" Satisfaction Measurement Model (SMM). This model tracks satisfaction based on the number of units delivered against the total quantity promised in the performance obligation. Therefore, setting SM to "Allow Partial" and SMM to "Quantity" correctly models this business requirement for point-in-time revenue recognition per unit.

B. "Requires Complete" is incorrect as revenue is recognized per machine, not upon full order completion. "Period" is for time-based satisfaction.

C. "Requires Complete" prevents revenue recognition for partially fulfilled obligations, which contradicts the scenario.

D. "Requires Complete" is incorrect. "Percent" is used for percentage-of-completion revenue recognition, not for discrete units.

E. "Period" is incorrect as it is used for time-based revenue recognition (e.g., monthly subscriptions), not for discrete goods like machines.

1. Oracle Fusion Cloud Financials, Implementing Revenue Management, 23D, Chapter 5: Define Revenue Management Configuration. Section: "Performance Obligation Satisfaction". The documentation states, "Satisfaction Method: Select Allow Partial if the performance obligation can be partially satisfied... Satisfaction Measurement Model: Select Quantity if the performance obligation is satisfied based on the quantity of goods or services transferred to the customer."