WWW.ERPTREE.

COM
Application: Oracle Account Receivables
Title: Revenue Recognition

WWW.ERPTREE.COM Revenue Recognition 1

Content
About Revenue Recognition ………………………………………….3
Steps Required for Revenue Recognition …………………………….2
1. Define Fixed Schedule Accounting Rule…………………….4
2. Enter Invoice with Invoice Rule Bill in Advance …………...5
Test Case…………………………………………………………...…11
3. Run Revenue Recognition Program…………………………11

About Revenue Recognition

WWW.ERPTREE.COM Revenue Recognition 2
Accounting Rules: Accounting rules will determine the accounting period in which revenuses
are recognized

There are 4types of accounting rules

1. Daily revenue rates , All periopds

2. Daily revenue rates, Partial periods

3. Fixed Schedule

4. Varible Schedule

Fixed Schedule Accounting Rule: we will define duration of the project and percentage of
revenue of each accounting period , at the time of fixed schedule accounting rule setup

Invoice Rules: invoice rules will be determined the accounting period in which receivables are
recognized

1. Bill in Advasnce
2. Bill in Arrears

Bill In Advance : systemwill recognize the invoice amounts as a advance or starting of a project.

WWW.ERPTREE.COM Revenue Recognition 3

Step-1 Define Fixed Schedule Accounting Rule
Application: Account Receivables

Nav: Setup  Transaction  Accounting Rule

1. Enter name
2. Select type as fixed schedule
3. Select period type
4. Select number of periods
5. Enter the percentage for month
6. Save it

Step-2 Enter Invoice with Invoice Rule Bill in Advance

WWW.ERPTREE.COM Revenue Recognition 4

Application: Account Receivables

Nav: Transaction  Transactions

1. Select invoice transaction source

2. Select invoice transaction type
3. Select type as invoice
4. Select bill to and ship to
5. Select payment terms
6. Select invoicing rule as In Advance
7. Click line items

1. Select item
2. Enter quantity

WWW.ERPTREE.COM Revenue Recognition 5

3. Enter unit price
4. Click on rules tab

1. Select fixed schedule accounting rule

2. Enter start date

WWW.ERPTREE.COM Revenue Recognition 6

3. Click on distribution

1. enter receivables account

2. enter revenue account

WWW.ERPTREE.COM Revenue Recognition 7

3. enter un earned account
4. save it

1. Click on complete

WWW.ERPTREE.COM Revenue Recognition 8

1. Transactions completed

WWW.ERPTREE.COM Revenue Recognition 9

Step-3 Run Revenue Reorganization Program

WWW.ERPTREE.COM Revenue Recognition 10

Application: Account Receivables

Nav: View  Request  Submit New Request  Select Single Request

1. Select revenue reorganization program

2. Select operating unit
3. Select print format as details
4. Commit work as yes
5. Click on ok
6. Click on submit

1. Select request id

WWW.ERPTREE.COM Revenue Recognition 11

2. Click on output

WWW.ERPTREE.COM Revenue Recognition 12

 1. Here we see the revenue recognition program execution report

WWW.ERPTREE.COM Revenue Recognition 13

WWW.ERPTREE.COM Revenue Recognition 14