Invoicing rules let you determine when to recognize the receivable for invoices that span more than one accounting period. You can assign invoicing rules to invoices that you manually enter or import into Receivables through AutoInvoice.

Receivables provides the following invoicing rules:

• Bill in Advance: Use this rule to recognize the receivable immediately.

• Bill in Arrears: Use this rule to recognize the receivable at the end of the revenue recognition schedule.

Accounting rules determine the number of periods and percentage of total revenue to record in each accounting period. See: Accounting Rules.

Prerequisites

• Define transaction types

• Define AutoAccounting

• Define transaction batch sources

• Set up document numbering (optional)

• Define accounting rules

To enter an invoice with rules:

1. Navigate to the Transaction or the Transactions Summary window.

2. Enter general information for this invoice. See: Entering Transactions.

3. Choose an Invoicing Rule of In Advance or In Arrears. Once you save this invoice, you cannot update this field, even if no value has been entered.

   Attention: You need to enter an invoicing rule if you want to assign an accounting rule to line items or if you want Receivables to enter a default rule based on the item or memo line that you enter (see next step).

4. Choose Line Items, then enter the Item, Quantity, and Unit Price for this item. Receivables automatically calculates the total Amount.

   Note: Receivables saves your invoice information when you choose Line Items.

   Suggestion: You can use standard memo lines instead of items if, for example, you have not installed Oracle Order Management or Oracle Inventory. To use memo lines, place your cursor in the Description field, then enter the memo line or select from the list of values. See: Standard Memo Lines.

5. Open the Rules tabbed region. Enter an Accounting rule, a Duration, and the First Date to start recognizing revenue for this invoice line.

   If you enter an accounting rule whose type is either Daily Revenue Rate, All Periods or Daily Revenue Rate, Partial Periods, enter a rule start and end date. Do not enter a duration.

   If you enter a accounting rule whose type is Variable Schedule, enter the number of general ledger periods over which you want to distribute revenue for this invoice line in the Duration field.

   If you enter an accounting rule whose type is Fixed Schedule, Receivables displays the default duration for this rule.

   Note: The period type for the accounting rule must match a period type in the calendar that is assigned to this ledger. See: Defining Period Types.

6. To view the account sets that AutoAccounting has assigned to your invoice lines, choose Distributions.

7. To view the account sets for a single invoice line, choose Sets for this Line from the menu. Or, to view the accounting information for all invoice lines, choose Sets for All Lines.

   Note: The Revenue Recognition program uses the account sets to determine your revenue accounts. You must run the Revenue Recognition program to generate the actual distribution lines. See: Recognizing Revenue.

8. To update accounting information, you can modify the GL account codes for all classes in the Account Distribution Sets.

   Note: Revenue is the only class that allows distribution lines. If you add additional revenue distribution lines, the total for all revenue distribution lines must equal 100% per invoice line. To update distributions after you run the Revenue Recognition program, you must change the distributions for the specified periods.