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Behavior of Different Rule Method (LIFO, PRORATE and UNIT) on Application and Accounting of Credit Memo with Invoicing Rule (Doc ID 2269119.1)

Last updated on AUGUST 22, 2018

Applies to:

Oracle Receivables - Version 11.5.10.2 and later
Information in this document applies to any platform.

Purpose

 This document will help you understand the following:

  1. Accounting of Transactions having Invoicing Rules
  2. How to create a Credit Memo (CM) with Rules 
  3. How the Rule Methods affect its Application.

This document discusses Setup, Simulation, Accounting and back end data model of Transactions having Invoicing Rule.

Scope

 Intended audience are R12 Oracle Receivables users. The document coves functional overview and the technical aspect of Accounting and Application of Credit Memo with change of Rule Method.

Details

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In this Document
Purpose
Scope
Details
  Introduction
 Invoicing Rule and Accounting Rule 
 Invoicing Rules
 Accounting Rule
 Accounting if Revenue is not Recognized (Bill in Advance)
 Accounting if Revenue is Recognized (Bill in Advance)
 Accounting if Revenue is Recognized (Bill in Arrear)
 Credit Memo Application with Different Rule method
 Case 1 - A full credit memo entered against the invoice:
 About AR_CREDIT_MEMO_AMOUNTS table
 Accounting Entries
 Case 2 - A partial credit memo entered against the invoice, with credit method for rules set to PRORATE
 The calculation used in PRORATE
 Case 3 - A partial credit memo entered against the invoice, with credit method for rules set to LIFO.
 The Calculation used in LIFO
  Case 4 - A partial credit memo entered against the invoice, with credit method for rules set to UNIT
  The Calculation Used in UNIT
 Case 5: Credit Memo is applied to a Unrecognized Invoice

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