Credit Memo from OKS with LIFO Method Against Invoice with Daily Revenue Recognition has Incorrect Distribution, Complete Distribution is created in the Last Month
Last updated on JULY 03, 2017
Applies to:Oracle Receivables - Version 12.1.3 and later
Information in this document applies to any platform.
Credit memo Interfaced from Service Contracts into AR are having Incorrect Distributions.
The a mount has not got prorated evenly across periods.
The Credit Memo generated is using CREDIT_METHOD_FOR_ACCT_RULE = LIFO, so system should apply the credit amounts starting from the last period. But in customers case it is applying the entire amount in Last Period.
The RULE_START_DATE of such terminated contracts is NULL in interface but the RULE_END_DATE is picked from the associated Invoice.
The rule start date for these CM records is null and rule end date is not null
The issue can be reproduced at will with the following steps:
- Select a Invoice with Start date 01/01/2014 to 12/31/2014 (Example) $1200. Accounting Rule : Amortized
- Do a Contract termination from Service Contracts of full amount i.e. -$1200
- Rather than reversing the credit memo amount in LIFO fashion, it is crediting all the credit amount in last month i.e. -$1200 in Dec-2014.
- Correct Behavior, the CM should be amortized in LIFO manner and spread the debit amount accordingly
Sign In with your My Oracle Support account
Don't have a My Oracle Support account? Click to get started
Million Knowledge Articles and hundreds of Community platforms