How Are Transactions Using Payment-Based Revenue Management Are Identified

(Doc ID 808705.1)

Last updated on OCTOBER 09, 2017

Applies to:

Oracle Receivables - Version 11.5.10.2 to 11.5.10.2 [Release 11.5.10]
Information in this document applies to any platform.
Information in this document applies to any platform.

Goal

Scenario 1:
We are utilizing Payment-Based Revenue Management based on Credit Class. We need to know where Oracle identifies that a Receivable has revenue that has been deferred to an unearned account due
to Payment-Based Revenue Management functionality. Is the transaction flagged by the Revenue
Management engine? If so, in which schema and in what table is this flag located? The business
would like to use the Revenue Actions Wizard to recognize revenue for customers whose credit
worthiness has been upgraded to a credit class that should no longer be contingent upon payment,
however, we have no way of identifying which transactions are deferred due to credit worthiness,
or if it has been deferred for another reason.

- Set up credit Class D in Receivables Setup => System => System Options => Revenue Policy => Credit Classifications for Deferred Revenue
-Process an order for a customer with credit Class D. Book and Ship Confirm the order.
-Run AutoInoice
-Run Revenue Recognition
-Check Distributions form for Receivable in Transactions Workbench => Revenue has been deferred.
-Apply a standard cash receipt to receivable
-Check Distributions form for Receivable in Transactions Workbench => Revenue has been recognized.
-Need to know where transactions are flagged as utilizing Payment-Based Revenue Management functionality


Scenario 2:
We defer revenue using event-based revenue recognition functionality if a customer falls within
one of three credit classes. As far as we know, the credit class is not captured on the
receivables transaction when it is created. If a customer's credit class changes, we make the
change on the customer record, losing any information on customer credit class at the time prior
to when receivables were created. If a customer's credit has been upgraded to a class that no longer
requires revenue to be deferred, we have no way of knowing exactly why past transactions were
deferred. The distinctions between each of the credit classes for which we defer revenue are
important from a GAAP perspective. In addition, per GAAP, we are obligated to treat prior
receivables according to the credit class at the time the receivable was created. However,
without knowing which class was captured at that time, we have no way of properly reconciling our deferred revenue balance.




Solution

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