By Mmcasey-Oracle on May 02, 2016
You may have business or legal requirements that dictate how you can account for the revenue associated to the invoice. Perhaps you recognize the revenue in full once the invoice is paid, or for invoices associated with a service spread out over multiple months, you may need to recognize the revenue only when the service has been provided.
Scheduling when Revenue is accounted for, is all handled by Revenue Recognition feature. Revenue Recognition is an engine that will created GL distributions for your invoices reflecting the revenue schedule you defined.
Revenue Recognition is run as a batch process either as a stand-alone or automatically when you invoke transfer of accounting to the General Ledger. The process will pick up all invoices with rules that have not yet been processed. For each of these invoices, it will review the Invoicing and Accounting rules associated and create the necessary GL distributions it creates is how invoices in Receivables get posted to the General Ledger.When Revenue Recognition encounters errors while processing transactions, it will report these transactions as Unprocessed or Partially Processed. Here are five things that could affect Revenue Recognition: