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How to Account for Project Revenue and Invoices in Oracle Cloud PPM

When generating revenue and invoices from Projects in Oracle Cloud PPM, revenue is transferred to the general ledger, but, the invoice information is sent to receivables. This might cause issues in accounting if not paying attention during configuration. We will look at how we got here.

In most cases, setup is a straight forward SLA rule to credit a revenue account. The Generate Revenue process will debit Unbilled Receivables and credit Revenue. Overlooking the accounting life-cycle of both the revenue and invoice in Oracle Cloud PPM is problematic.

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An issue can present itself after the invoice transferred to receivables. If AR AutoAccounting Rules use the Transaction Type for Revenue you must complete the “Revenue” code combination on the Transaction Type. If you select the Revenue account value, then Revenue will double book, debit Receivables and credit Revenue.

The quick resolution is to enter the Unbilled Receivable account value in the Revenue code combination of the Transaction Type. This results in a debit to Receivables and a credit to Unbilled Receivables.

In summary the correct entry will be:
Revenue Generation (PPM to GL):
DR Unbilled Receivables
CR Revenue

Invoice Generation (PPM to AR):
DR Receivables
CR Unbilled Receivables

Developing more complex SLA rules in Oracle Cloud PPM is an option, too. Especially where segment values are dynamic, and/or, fewer Transaction Types are desired.

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Wallace Bartlett, Sr. Solutions Architect

Wallace has been working with Oracle applications for nearly 20 years implementing domestic and international projects in roles from consultant to Director/Solution Architect. He has participated in implementation/upgrade, project oversight, pre-sales, and large complex process improvement efforts. Experience includes project and managerial accounting operations, financial planning & budgeting, payables and billing. His Oracle experience includes Project Accounting suite, Financials and process improvement within numerous industries. The list includes Professional Services, Manufacturing, Mining, Financial Services and Business Services, Communications and Media, and Automotive.

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