Use the Revenue Accounting Management (RAM) wizard to:
Prerequisites
Set System Options. Enable the Require Salesperson system option because you must assign sales credit to all invoices that may be adjusted for either revenue or sales credits. If you wish to use the Revenue Accounting feature only for revenue adjustments and do not normally track sales credits, you can use the seeded salesperson value of No Sales Credit.
Note: Although you must assign sales credit to all transactions, you are not required to set up AutoAccounting to derive an Accounting Flexfield segment from the salespersons table. See: Using AutoAccounting.
You may optionally set the Sales Credit Percent Limit system option in the Miscellaneous tabbed region. The Sales Credit Percent Limit imposes a limit on the percentage of revenue plus non-revenue sales credit that a salesperson can have on any transaction line. You can change the value that is defined for the Sales Credit Percent Limit system option at any time. If you do not define a value for this system option, then no sales credit limit validation is performed when using Revenue Accounting. See: Defining Receivables System Options.
Create Revenue Adjustment Reason Lookup Codes. Receivables provides three revenue adjustment reason codes, but each company has its own reasons for adjusting revenue. Before you make revenue adjustments, you can create company-specific reason code lookups using the REV_ADJ_REASON lookup type.
Recognize Revenue. Before you can adjust transactions with rules, you must run the Revenue Recognition program.
When you navigate to the Revenue Accounting and Sales Credits window, the Find Transactions for Revenue Accounting window opens. In this window, enter query criteria for the transaction that you want to adjust, and click Find.
The Revenue Accounting and Sales Credits window displays the transaction that you selected. If your query returned more than one transaction, then page down until you find the record that you want.
Choose the Manage Revenue button.
Select the type of adjustment that you want to make and click Next:
Unschedule Revenue
Schedule Revenue
If you want to record acceptance, see: Recording Early Acceptance.
Optionally select a salesperson to restrict a revenue adjustment to the portion of revenue that is credited to that particular salesperson.
Select a specific item, item category, or line number to limit the lines that are adjusted.
Warning: If you set AutoAccounting to derive any accounting segments from a standard line, the transaction line must be either an inventory item or standard memo line. Otherwise, AutoAccounting cannot create the valid GL account code combination.
For partial adjustments, select either an amount or percentage. To adjust the full amount, select All Adjustable Revenue.
Note: Oracle Receivables allows you to do revenue adjustments on invoices that have been fully credited. Although the amount you can earn or unearn on a fully credited invoice is zero (under almost every circumstance), this functionality lets you use the Revenue Accounting Management (RAM) wizard to adjust the earned or unearned revenue for an invoice with a deferred rule.
In the Reason field, select the reason code for this adjustment from the list of values.
Optionally change the GL start date and add comments to this adjustment.
When you update the GL start date, Receivables ignores the original rule start date entered via the Transactions workbench and accepts the GL date that you enter as the start date for revenue recognition, provided that:
no accounting rule exists on the transaction line, or
the accounting rule is for a single period, or
a deferred accounting rule exists on the transaction line
If a multi-period accounting rule exists and is not deferred, Receivables ignores the GL start date and uses the original revenue recognition schedule on the transaction, based on the rule start date entered via the Transaction workbench.
After you make the adjustment, review the adjustment in the Action Results window. You can modify the adjustment's GL distributions before you save the results.
Note: To ensure account reconciliation, any revenue adjustments that you make to an invoice should also be made to that invoice's related credit memos.
You can make revenue adjustments to on-account credit memos only. In addition, 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.
Navigate to the Revenue Accounting and Sales Credits window and enter your query criteria.
Choose the Manage Sales Credits button.
Select the type of adjustment that you want to make and click Next:
Transfer Sales Credits
Add Non Revenue Sales Credits
Specify the From and To Salespersons for this action.
Select the salesperson(s) and the sales credit type that you want to adjust.
Receivables defaults a sales group, if available, for each salesperson that you specify. You can change the default.
Select a specific item, item category, or line number to limit the lines that are adjusted.
Warning: If you set AutoAccounting to derive any accounting segments from a standard line, the transaction line must be either an inventory item or standard memo line. Otherwise, AutoAccounting cannot create the valid GL account code combination.
For partial adjustments, select either an amount or percentage. See: Adjusting Sales Credits.
In the Reason field, select the reason code for this adjustment from the list of values.
Optionally change the GL start date and add comments to this adjustment.
When you update the GL start date, Receivables ignores the original rule start date entered via the Transactions workbench and accepts the GL date that you enter as the start date for revenue recognition, provided that:
no accounting rule exists on the transaction line, or
the accounting rule is for a single period, or
a deferred accounting rule exists on the transaction line
If a multi-period accounting rule exists and is not deferred, Receivables ignores the GL start date and uses the original revenue recognition schedule on the transaction, based on the rule start date entered via the Transaction workbench.
After you make the adjustment, review the adjustment in the Action Results window. You can modify the adjustment's GL distributions before you save the results.
Navigate to the Revenue Accounting and Sales Credits window and enter your query criteria.
Choose the Manage Revenue button.
Select Modify Revenue Contingencies.
Optionally select a salesperson to restrict a revenue adjustment to the portion of revenue that is credited to that particular salesperson.
Select a specific item, item category, or line number to limit the lines that are adjusted.
Warning: If you set AutoAccounting to derive any accounting segments from a standard line, the transaction line must be either an inventory item or standard memo line. Otherwise, AutoAccounting cannot create the valid GL account code combination.
Select the transaction line whose contingency you want to adjust. Then, in the Line Revenue Contingencies region, adjust the contingency's expiration date attributes:
Number of days (days added to event attribute)
Estimated expiration date
Suggestion: To expire a contingency, set the expiration date to today's date.
Note: If a parent-child relationship exists from Oracle Order Management, then you can manage contingencies only on the parent lines. Child lines inherit contingencies from parent lines.
Navigate to the Revenue Accounting and Sales Credits window and enter your query criteria.
Choose the Manage Revenue button.
Select the Record Acceptance option and click Next.
Select a specific item, item category, or line number to indicate the line or lines that you want to accept.
The next window displays the lines that Receivables will record early acceptance for.
Click Next to accept the selected lines.
Review the results in the Results window.