Accounting Rule Start Date Changes on Service Contract Terminations Giving Incorrect Revenue Recognition
(Doc ID 1216954.1)
Last updated on JULY 22, 2020
Applies to:Oracle Receivables - Version 12.0.6 to 12.1.2 [Release 12.0 to 12.1]
Oracle Service Contracts - Version 12.0.6 to 12.1.2 [Release 12 to 12.1]
Information in this document applies to any platform.
Find that terminating a Service Contract sometimes results in incorrect revenue recognition. This is occurring when the Service Contract is created from a Sales Order and has a subline with a quantity greater than one.
The issue can be reproduced at will with the following steps:
1. Create a sales order that includes a Service for a quantity of 2.
2. Terminate the contract for full credit.
3. Run the Service Contracts Main Billing program to create the termination billing data.
4. Note that the credit in the AR Interface has a credit method of LIFO.
5. Run the AutoInvoice program.
6. The credit memo has 2 lines:
One has the correct start date.
The other has a start date about 1/2 way through the contract duration.
This incorrect start date causes the revenue recognition reversal amounts to be wrong for some, if not all, periods.
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