Oracle Project Billing allows you to generate draft invoices and draft revenue using separate processes, which you can run at different times. To allow for different billing cycles and revenue accrual, Oracle Projects creates the accounting distribution lines during invoice and revenue generation.

During the AutoInvoice process in Oracle Receivables, the balance on the advance is reduced (if applicable). The default account that is credited with the invoice amount is either the unbilled receivables (UBR) account or the unearned revenue (UER) account, depending on whether you accrue revenue before or after you generate invoices.

You can apply advance receipts to an agreement using the Apply Receipt window. When you run the program PRC: Generate Draft Invoices, the program reduces the available advance balance associated with the agreement.

The following examples illustrate how Oracle Projects accounts for revenue transactions.

Advance

After an advance receipt is applied to an agreement, Oracle Receivables creates the prepayment entry. The following table shows an example of a prepayment entry that Oracle Receivables creates:

Revenue

Once revenue is created, Oracle Projects runs AutoAccounting to determine the appropriate default accounts. AutoAccounting selects all of the AutoAccounting parameters for each item or event, determines the account coding, validates the account coding against the general ledger, and updates each revenue distribution line with the appropriate default account.

Any items or events that fail in AutoAccounting are marked accordingly, and the associated draft revenue is marked with a generation error. See: Overview of AutoAccounting, Oracle Projects Implementation Guide.

Invoice

When you run the program to interface invoices to Oracle Receivables, Oracle Projects runs AutoAccounting to determine the appropriate default accounts. If the invoice fails AutoAccounting, then the program marks the draft invoice with an error. See: Overview of AutoAccounting, Oracle Projects Implementation Guide.

The following table shows entries Oracle Projects creates when the Interface Invoices to Oracle Receivables process is run:

Collections

The following table shows a Collections entry Oracle Receivables creates:

The following table shows a prepayment matching entry that Oracle Receivables creates:

Examples of Revenue and Invoice Accounting Transactions

The following examples shows accounting transactions for revenue accrual and billing.

Example 1: Accrue prior to billing

The following table shows a revenue transaction entry prior to billing:

The following table shows an invoice transaction entry prior to billing:

Example 2: Invoice prior to accrual

The following table shows an invoice transaction entry prior to accrual:

The following table shows a revenue transaction entry prior to accrual:

Example 3: Accrue prior to invoicing and invoice partial amount of work

The following table shows a revenue transaction entry prior to invoicing:

The following table shows a partial invoice transaction entry:

Example 4: Pre-bill and accrue more than pre-bill

The following table shows a pre-bill transaction entry:

The following table shows an accrue more than pre-bill transaction entry: