Use the Revenue Accounting feature to quickly and easily adjust revenue and sales credits at the transaction or line level. You can make manual adjustments using the Revenue Accounting and Sales Credits window. Alternatively, use the Revenue Adjustment API to automatically perform these adjustments. See: Revenue Adjustment API User Notes in the Oracle Receivables Reference Guide.
Revenue Accounting uses the Revenue Accounting Management (RAM) wizard to guide you through the process of making and modifying revenue adjustments. You can also use the wizard to update expiration dates of existing revenue contingencies. For example, you can record early acceptance for an invoice line, if the line is associated with a contract that offers an acceptance clause.
Use the RAM wizard to:
Earn revenue
Unearn revenue
Review previous revenue adjustments
Record early acceptance
Manage revenue contingencies
Transfer revenue and non-revenue sales credits
Add non-revenue sales credits
You can make sales credit adjustments to completed invoices, credit memos, debit memos, and deposits only. You can make revenue adjustments to completed invoices and on account credit memos only. In addition, to make revenue adjustments to on account credit memos you must set the AR: Use invoice accounting for credits profile option to No. For all other credit memos, and if the profile option is set to Yes, Receivables prevents revenue adjustments.
Note: When making adjustments to transactions with rules, the invoicing rule must be In Advance.
To enter the RAM wizard, query a transaction in the Revenue Accounting and Sales Credits window and choose either Manage Revenue or Manage Sales Credits.
Suggestion: These buttons are controlled by function security. See: Function Security in Oracle Receivables.
Use the selection criteria listed below to optionally limit the lines that are affected by an adjustment or early acceptance:
Inventory item
Inventory category
Line number
Salesperson (limits the impacted lines for adjustments only)
See: Using the Revenue Accounting Management (RAM) Wizard.
When you make adjustments using Revenue Accounting, Receivables uses AutoAccounting to automatically generate all necessary accounting distributions. Before Receivables saves the adjustments, the distributions and/or sales credits resulting from the adjustment are displayed for your review. At this point, you have a final opportunity to approve or cancel the adjustments. In the case of a revenue adjustment, you can also modify the account distributions before saving.
You can also review your early acceptance and other revenue contingency actions before saving. In certain cases, recording early acceptance or expiring a contingency can trigger automatic revenue recognition for the invoice line. See: Evaluating Invoices for Event-Based Revenue Management.
Note: When you create or import an invoice, you can defer all revenue to an unearned account by assigning a deferred accounting rule to the invoice. At the appropriate time, you can recognize revenue manually using the Revenue Accounting and Sales Credits window or automatically using the Revenue Adjustment API. See: Deferred Accounting Rules.
When you query a transaction, the Revenue Accounting and Sales Credits window displays the following information:
The Transaction tab displays transaction details, including a summary of the scheduled and unscheduled revenue on the transaction.
Revenue is scheduled when Receivables creates, for a transaction line, the revenue distribution records for all accounting periods as specified by the line's assigned accounting rule. Note that scheduled revenue does not mean that the revenue amounts are already earned; rather, Receivables has simply created the distribution records for those amounts.
The Actions History tab displays details about actions already recorded against this transaction. This is a folder region, so you can select and order the columns according to your preference.
Transaction line details appear in the middle of the window. For each transaction line, you can view additional details by choosing either Line Distributions, Line Sales Credits, or Line Revenue Contingencies from the menu.