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