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The Little Known Factors that could affect Recognizing Revenue

Michele Casey
Principal Technical Support Engineer

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:

1. Not being on the latest code can cause errors, The Revenue Recognition process is handled by the following:

Filename

Description

 ARPLARLB.pls and ARPLARLS.pls

 PL/SQL package body and specification
that defines ARP_AUTO_RULE, which contains the main logic controlling
the Revenue Recognition process.
 ARBARL.rdf  Report definition handling, the Revenue
Recognition Execution Report, which serves as entry point into calling
the ARP_AUTO_RULE package to create distributions.


2. Make sure the period associated to the Accounting Rule is
the same period associated to your Ledger.  For more information see
DocID 1116934.1 under the section 5.e. When choosing an Accounting rule get error

3. Validate GL Periods, When checking GL periods, ensure there are no "islands" or "sandwiched" periods

Responsibility: Receivables Manager
Navigation: Control > Accounting > Open/Close Periods

Revenue Recognition expects to see period statuses in the following order:
Closed - Closed Pending - Open - Not Opened - Future

Basically, periods in the past are Closed or Closed Pending,
current periods are Open, and future periods are Not Opened or Future.
The
presence of an Open period sandwiched between Closed periods, or
presence of island of Closed periods surrounded by Open periods causes
errors in Revenue Recognition.

4. Printer setup, The Revenue Recognition process is kicked off via
a report, if your setup has printing enabled, and the printer is not
setup correctly you may hit errors like:

APP-FND-00500: AFPPRN received a return code of failure from routine FDUPRN
Options to fix this are:

Uncheck the Print Checkbox
Responsibility: System Administrator
Navigation: Concurrent > Program > Define

Query on Short Name = ARBARL
Uncheck the Print checkbox in the Output Region to disable printing
Check if the correct printer driver is installed

5. GL Date or Transaction Date issues, When you have issues with
the GL or Transaction dates generated by Revenue Recognition, please
refer to DocID 201241.1 Troubleshooting AUtoinvoice Date Derivation: GL
Date, Invoice Date, Due Date, Ship Date, Billing Date, Rule Date which
provides an explanation of how dates are derived.

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