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G-Invoicing: How does the Servicing Agency Handle Deferred Performances that Cross Accounting Periods? (Doc ID 2896784.1)

Last updated on SEPTEMBER 16, 2022

Applies to:

Oracle Project Billing - Version 12.2.9 and later
Information in this document applies to any platform.


Question 1:

The servicing agency initiates a deferred payment (performance) in Oracle Projects by entering an event where the revenue is greater than the billing amount, and creating either a delivery or deferred performance that is pushed to G-Invoicing. The requesting agency pulls the deferred performance from G-Invoicing into Oracle, and runs a process which creates an expense accrual, which is going to be reversed the following month. If the servicing agency doesn’t bill for the previously recognized revenue the following month, a new differed performance will have to be sent to G-Invoicing to create a new expense accrual for the requesting agency. How will this be initiated on the servicing side?   Does the servicing agency have to reverse the previous revenue recognition and enter a new event with revenue greater than billing to enter a new deferred performance, or can a new deferred performance be entered using the previous months event? In this case, the servicing agencies only bill quarterly and will be doing deferred performances for the first and second month of a quarter, so how is the second month of revenue accruals going to work on the servicing side?
Question 2: 

Development indicates: "every time you submit Deferred performance, it calculates the value (Total Revenue - Total Billed)" but how do users trigger a deffered performance if a new event is not entered for subsequent months?

For example:

1. Servicing agency only does quarterly billing.

Month 1

2. Servicing agency enters an event with $0 Billing and $50 Revenue and generates the draft revenue, reviews and releases revenue, and generates revenue account event to record a revenue accrual.
3. Servicing agency creates a deferred performance for $50 from the performance obligation.
4. Requesting agency pulls deferred performance and creates an expense performance.

Month 2

5. Requesting agency run the process to reverse all open deferred performances from the previous month, which reverses the expense accrual from month 1.
6. Servicing agency has no revenue to recognize for month 2 and no new event is entered.
If the servicing agency doesn't enter a new event to record revenue recognition for month 2, no new deferred performance can be created and sent to G-Invoicing, even though there is a difference between billing and revenue of $50 from the previous month. What mechanism should be used to generate a deferred performance for month 2?"


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