As a consultant, I know there will be new questions and requests made by every client. I find it exciting to have a question come up that I haven’t heard before because it gives me the opportunity to research and learn something new. However, it is still important to address everyday business processes with the client to ensure that we are providing them with the best service possible. When it comes to Accounts Receivables, the subject of revenue recognition scheduling came up in a recent project. The client requested that a rule be created to recognize revenue in the future, but still recognize the receivables on the transaction date. As a team, we were able to determine the best method possible to set this up for the client.
In order to perform this functionality in Cloud, a revenue scheduling rule must be created in the Setup and Maintenance area first. The rule can be specific to a fixed schedule, based on a daily rate, etc. and can also have the revenue recognized each period in the schedule based on a percentage. In essence, Oracle has done a great job at giving the client many options for setting up these rules. The ability to assign a revenue scheduling rule to a memo line is available as well, which is great for the clients who don’t want to take time choosing the desired revenue rule for each transaction created. These revenue scheduling rules are great for clients who, for example, want to recognize revenue 13 months in the future and still account for the receivables on the ledger on the current day or transaction date. One important note for assigning these recognition schedules is that the correct invoicing rule must be applied, which I will explain in next week’s blog. For this specific topic, though, the ‘In Advance’ rule should be chosen in order to not change the receivables recognition date.
Hopefully this has been insightful enough for those who previously did not understand or know about the available revenue recognition functionality in Cloud. I know I am grateful that Oracle provides so many great features to each application so that clients (hopefully all) can be satisfied with a solution for their daily, weekly and monthly business processes, and I am glad to be able to provide this to them!
