Deferred Rule / Revenue Contingency is Not Working for Invoices with a Negative Amount

(Doc ID 1922272.1)

Last updated on APRIL 06, 2017

Applies to:

Oracle Receivables - Version 12.1.2 and later
Information in this document applies to any platform.


The Deferred Rule / Revenue Contingency is not working for Invoices with a negative Amount.
The accounting remains stuck in the Unearned Distribution and Revenue is not recognized, as per contingency setup.

This issue occurs only when using a Transaction Type that has allow_overapplication_flag = Y.

Steps to Reproduce:
Revenue Management Super User, Vision Operations (USA)
Navigation: Revenue Contingencies > Contingencies Definition

1 Create a Revenue Contingency: XXCAL_ADC_REV_REC
Related general policy: None
Removal Event: Payment

2. Define Assignments Rule: XXCAL_ADC_ACCT_RULE
Assigned rev contingency: XXCAL_ADC_REV_REC
 a) Accounting Rule: Immediate
 b) Batch Source: Test Contingency

Responsibility: Receivables, Vision Operations (USA)
Navigation:  Setup > Transactions > Transaction Types

1. Change the transaction type
Check the Allow Overapplication option.

2. Create a new Invoice:
Responsibility: Receivables, Vision Operations (USA)
Navigation:  Transactions > Transactions
Insert trx header details:
 a) Batch Source: Test Contingency
 b) Type: Inv-any sign
 c) Insert Line Items details:
     - Amount = -100
     - Accounting rule = Immediate
 d) Save and complete -> transaction no 102.
 e) Check the records amount information on scheduled and unschedule revenue, and contingencies that impact revenue for each invoice line an AR_DEFERRED_LINES_ALL and AR_LINE_CONTS_ALL tables:

3. Run Revenue Recognition process:
Responsibility: Receivables, Vision Operations (USA)
Navigation: View > Requests > Submit a New Request > Single Request
Query for Revenue Recognition and Submit

4. Check the Invoice distributions:
Responsibility: Receivables, Vision Operations (USA)
Navigation:  Transactions > Transactions
Find transaction number 102
Go To:  Distributions > the Revenue had been deferred:

5. Create a new receipt and applying it against trx no 102:
Responsibility: Receivables, Vision Operations (USA)
Navigation:  Receipts > Receipts

6. Checking the Invoice distributions (using the same navigation steps from 4, the revenue is still deferred. It wasn't recognized

NOTE: If the Transaction allow_overapplication_flag='N' is used, the Revenue is recognized for invoice with a negative amount, when a receipt is applied against it.


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