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EAR 9.2: AR Update Sets PS_ITEM_ACTIVITY.ARRE_STATUS = 'R' for Payment Activity on an Item Whose Invoice Comes from a Contract With Mismatched Event #s on Bill and Revenue Plans (Doc ID 2681293.1)

Last updated on MAY 24, 2023

Applies to:

PeopleSoft Enterprise FIN Receivables - Version 9.2 to 9.2 [Release 9]
Information in this document applies to any platform.


Having enabled Commitment Control functionality on the modules of Contracts, Billing, Receivables, and General Ledger, a problem has been detected when launching Budget Check Process against the Item's Payment Activity from an Invoice coming from a Billing transaction originated from Contracts.

There are a couple of conditions that need to be met to replicate the scenario:

    a) The Contract needs to be for Fixed Amount
    b) There needs to be a mismatch between the Event #s of the Bill and Revenue Plans

As a result of this problem, the the Contracts/Billing Invoice is paid through a Payment Worksheet in Receivables module, the Item is successfully closed, but in the Item Activity Record (PS_ITEM_ACTIVITY), the Revenue Estimate Status Field (ARRE_STATUS) is being set to a value of 'R' (No Revenue Lines).

The reason is because there was no revenue generated for the Invoice in Project Costing, because it is an amount based Contract.


    1.- Log into the FSCM Online Application as a Financials User
    2.- Enable Commitment Control functionality for the modules of General Ledger, Billing, and Accounts Receivable
    3.- Define a new Budget Journal for Business Unit US004, and Ledger CC_REV, under ChartFields Account 400000, Department ID 14000, and Product INSTAL
    4.- Journal Edit and Journal Post this new Budget Journal, and ensure the amount is properly booked at the Budget Detail level
    5.- In Contracts module, create a new Amount based Contract ID under Business Unit US004, and Customer ID 1000:
         a) Add one Contract Line for a fixed amount of 2,000 USD
         b) At the Billing Allocation level, allocate the fixed 2,000 USD into one Price Line
         c) At the Revenue Allocation level, ensure that all amount is also allocated (should be grayed out, following the Billing Allocation mainly)
         d) At the Accounting Distribution level, set up the same ChartField Values: Account 400000, Department ID 14000, and Product INSTAL
         e) Create a new Bill Plan, with a Billing Method of Milestones, and assign it
         f) Then, proceed to create 3 different Bill Plan Events defined by Amount, and spread the 2000 USD among the three Events (600 USD, 600 USD, and 800 USD)
         g) Once saved, delete Event #1, and redistribute the amounts to 1,000 USD each Events remaining (#2 and #3), with Event #2 on current date, and Event #3 on a future date
         h) Continue by creating a new Revenue Plan, and assign it. It will have however only 2 Events, same dates as Events #2 and #3 from the Bill Plan, and also each an amount of 1,000 USD
         i) At this stage, we should have a Contract with a Bill Plan (Events #2 and #3), and a Revenue Plan (Events #1 and #2). Basically the Events #s are not matching, because we deleted one Event from the Bill Plan. This is what is needed to replicate the problem, so this step is very important
    6.- Activate the Contract, and save it
    7.- Launch the Process Other Billing Methods (CA_BI_INTFC AE Program) for the new Contract created
    8.- Launch the Billing Interface process (BIIF0001 AE Program) for the Interface ID generated by CA_BI_INTFC AE Program
    9.- Continue by approving the generated Billing Worksheet
    10.- Launch the Process Fixed Amount Revenue program (CA_LOAD_GL1 AE Program) for the Contract ID being worked
    11.- Check the Budget Detail, (Business Unit US004, Account 400000, Department ID 14000, and Product INSTAL), and ensure that the Recognized Revenue is listing 2,000 USD
    12.- Run Journal Generator (FS_JGEN AE Program) for the Contracts Revenue Accounting Lines so that new Journal Entries are created, edited, budget checked, and posted into the Ledger
    13.- Set the Billing Invoice to a Ready Status (RDY)
    14.- Run the Single Action Invoice process for the Billing Invoice that has been set to Ready status (Processes: BIIVC000, BICURCNV, BIPRELD, BILDGL01, FS_BP, and BILDAR01)
    15.- Confirm that a new External Item Group is created in Accounts Receivable module from the Billing Invoice, and set its Post Action to Batch Standard
    16.- Launch AR Update process for Business Unit US004, and Pending Items option selected
    17.- Confirm that the Revenue Estimate Status for the new Item’s Activity is set to a value of 'Gen by BI'
    18.- At the External Bank Account set up page, define the following settings:
         - Bank Set ID = SHARE
         - Bank Code = USBNK
         - Bank Account = CHK5
         - Account Type = Cash-AR
         - GL Unit = US004
         - Account = 400000
         - Department ID = 14000
         - Product = INSTAL
    19.- Create a new Regular Deposit for Deposit Unit US004, Bank Code USBNK, Bank Account CHK5, for an amount of 2,120 USD. Define one Payment for the same amount, linked to Customer ID 1000, Business Unit US004, and the Item ID of the Billing Invoice
    20.- Build a new Payment Worksheet from the Deposit transaction, balance the Payment against the Invoice
    21.- Create the Accounting Entries for the Payment Worksheet, ensuring the Cash Line contains the ChartFields needed: Account 400000, Department ID 14000, and Product INSTAL
    22.- Set the Payment Worksheet to a Post Action of Batch Standard
    23.- Launch AR Update process for Business Unit US004, and Payments option selected
    24.- Confirm that the Item has been closed, with a new Item Activity of Payment
    25.- ISSUE: Check the Revenue Estimate Status for the Item Payment Activity, and confirm its status is 'No Item Rev', with a Budget Status of 'Not Chk'd'

To gather more information concerning this scenario and its related problem, refer to the available Replication Steps PDF Document here linked containing the complete configuration and the replication steps necessary to reproduce the issue.

The Item's Payment Activity is set to a Revenue Estimate Status of 'No Item Revenue', and the transaction cannot be Budget Checked, hence it will never impact the Commitment Control Budget Detail. In such scenarios, the Item's Payment Accounting Entries are left in Accounts Receivable without getting selected for Journal Generation as there is not Revenue.

No matter if the Revenue Plan, and the Bill Plan have mismatching Event #s, the Budget Checking Processor should be able to successfully identify the Payment transaction, and set it to Valid. 


NOTE: In the images/screenshots/examples mentioned and/or the attached document, user details / company name / address / email / telephone number represent a fictitious sample (based upon made up data used in the Oracle Demo Vision instance).  Any similarity to actual persons, living or dead, is purely coincidental and not intended in any manner.




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