Credit Memo Generated By Cancelling An Accepted Invoice Does Not Reduce Recognized Revenue (Doc ID 2192296.1)

Last updated on JANUARY 03, 2024

Applies to:

Symptoms

We cancel an invoice, creating a credit memo that is processed and moves into Accepted status. However, the system does not put the "revenue status" of the expenditure items that were credited into a "pending adjustment" status. So the revenue is not removed from the contract, resulting in invoice and revenue amounts that are totally out of balance (i.e. the revenue amount is higher than the invoice amount).
I can manually select all the expenditure items and go to Actions -> Billing -> Refresh Billing Resources and the system will put all the recently credited expenditure items into Pending Adjustment status. Then when I run Generate Revenue, the revenue is pulled off the contract as expected. But I should not have to manually do this step every time a credit memo is created.

On Manage Expenditure Items page when an expenditure item is having revenue status in Pending Adjustment and on running Generate Revenue, the adjusted Revenue Distribution Lines (RDL) has not been created, the first thing is to verify if the Generate Revenue date range i.e. revenue from and to date covers the Expenditure Item dates in question. Run the Generate Revenue process for that contact with these from and to dates.

Yes, we are running Generate Revenue for a date range that covers the credited expenditure items. The issue is that the system is not putting them into a status where Generate Revenue will evaluate them during the run. After the credit memo is created, they remain in "Fully Recognized" status and will not be reprocess. Only after I manually force them into "Pending Adjustment" status does the system pick them up during the run of Generate Revenue and remove the revenue from the contract.

1) Cancel an invoice, generating a Credit Memo that is in Approved status
2) Release invoice, Transfer to Receivables, create Receivables Credit Memo, Update PPM Invoice
3) PPM Credit Memo now in Accepted status
4) Credited expenditure items still show a Revenue Status of "Fully Recognized". System will not remove revenue from the contract, even though the invoice is cancelled/credited.

Invoice Method Classification is "Rate Based"
Revenue Method Classification is "As Billed"

Cause

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