Friday, March 9, 2012

PA Revenue/Invoicing Accounting Transactions:


Oracle Project Billing allows you to generate draft invoices and draft revenue using
separate processes, which you can run at different times. To allow for different billing
cycles and revenue accrual, the distribution lines for General Ledger are created during
invoice and revenue generation.

During the Generate Draft Invoices process, the account that is credited with the invoice
amount is either the unbilled receivables (UBR) account or the unearned revenue (UER)
account, depending on whether you accrue revenue before or after you generate invoices.

Accounting Transactions for Revenue
The following examples illustrate how Oracle Projects accounts for revenue transactions.

Revenue
Once revenue is created, Oracle Projects runs AutoAccounting to determine the
appropriate general ledger accounts. AutoAccounting selects all of the AutoAccounting
parameters for each item or event, determines the account coding, validates the account
coding against the general ledger, and updates each revenue distribution line with
the appropriate account.
Any items or events that fail in AutoAccounting are marked accordingly, and the
associated draft revenue is marked with a generation error.

Invoice
When invoices are interfaced to Oracle Receivables, Oracle Projects runs AutoAccounting
to determine the appropriate general ledger accounts. AutoAccounting selects all
of the AutoAccounting parameters for each item or event, determines the account
coding, validates the account coding against the general ledger, and updates each
revenue distribution line with the appropriate account.
Any items or events that fail in AutoAccounting are marked accordingly, and the
associated draft revenue is marked with a generation error.

Invoice
When invoices are interfaced to Oracle Receivables, Oracle Projects runs AutoAccounting
to determine the appropriate general ledger accounts.

The following table shows entries Oracle Projects creates when the Interface Invoices to
Oracle Receivables process is run:
Account                                     Debit                               Credit
Receivables                               200.00
Unbilled Receivables and/or
Unearned Revenue                                                           200.00

Collections
The following table shows a Collections entry Oracle Receivables creates:
Account                                      Debit                               Credit
Cash                                           200.00
Receivables                                                                        200.00

Examples of Revenue and Invoice Accounting Transactions
The following examples shows accounting transactions for revenue accrual and billing.

Example 1: Accrue prior to billing
The following table shows a revenue transaction entry prior to billing:
Account                                      Debit                                Credit
Unbilled Receivables                  200.00
Revenue                                                                               200.00

The following table shows an invoice transaction entry prior to billing:
Account                                       Debit                                Credit
Receivables                                200.00
Unbilled Receivables                                                            200.00

Example 2: Invoice prior to accrual
The following table shows an invoice transaction entry prior to accrual:
Account                                       Debit                                Credit
Receivables                                200.00
Unearned Revenue                                                               200.00

The following table shows a revenue transaction entry prior to accrual:
Account                                       Debit                                 Credit
Unearned Revenue                    200.00
Revenue                                                                                 200.00

Example 3: Accrue prior to invoicing and invoice partial amount of work
The following table shows a revenue transaction entry prior to invoicing:
Account                                       Debit                                 Credit
Unbilled Receivables                  200.00
Revenue                                                                                200.00

The following table shows a partial invoice transaction entry:
Account                                       Debit                                 Credit
Receivables                                100.00
Unbilled Receivables                                                             100.00

Example 4: Pre-bill and accrue more than pre-bill
The following table shows a pre-bill transaction entry:
Account                                       Debit                                 Credit
Receivables                                200.00
Unearned Revenue                                                                200.00

The following table shows an accrue more than pre-bill transaction entry:
Account                                       Debit                                 Credit
Unearned Revenue                    200.00
Unbilled Receivables                  100.00
Revenue                                                                                 300.00

2 comments:

Lax said...

I appreciate your work. The screenshot images are not coming on the page. Can you please fix the issue ?

Raju said...

Hello...,

If you are unable view the images or content of the post, please send an Email to "oracleapps88@yahoo.com" with mentioning name of the post.

Thanks,
Raju

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