This chapter discusses these topics:
Section 10.1, "Understanding the End of Period Unrecognized Revenue"
Section 10.3, "Running the End of Period Unrecognized Revenue Report (R54R402)"
You use the End of Period Unrecognized Revenue program (R54R402) to report the rental revenue that is not yet billed by the Rental Contract Billing Workfile Generation program (R54R300). This report enables a rental business to record as much profit as possible in the company's income statements. If you run the Rental Contract Billing Workfile Generation program on the 10th of each month, the financial statement for the current billing month only includes the rental revenue for the 1st through the 10th of that month. The End of Period Unrecognized Revenue report records the rental revenue from the 11th through the end of the month.
The End of Period Unrecognized Revenue program totals and prints the unrecognized revenue for rental contracts by customer within a business unit. The system prints reservation contracts and indicates in the report that the contract is a reservation contract.
You can export the R54R402 report to a CSV format and then import the data to manually create journal entries.
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Note: This report only prints the amounts, and does not create reversing journal entries. |
The End of Period Unrecognized Revenue report contains the following information:
Rental contract details, such as the rental contract number, rental contract type, company, line number, item number, and serial number from the Rental Contract Detail table (F54R11)
The last invoice date, which is the billing end date (in the F54R11 table) that the system populates after you run the Rental Contract Billing Workfile Generation program (R54R300) in final mode
The system prints records that have billing method 2 (one-off contract billing) only if the last invoice date is blank. When the last invoice date is blank, it means that the rental contract has not been billed.
The bill-from date, which is the last invoice date, or the period begin date, whichever is later
The system calculates the period-begin date for the company from the Date Fiscal Patterns table (F0008).
If the system has not populated the last invoice date, then the bill-from date is the billing start date from the F54R11 table or the period begin date, whichever is later.
The bill-to date, which is the billing end date from the F54R11 table, or the period end date, whichever is earlier
The system calculates the period end date for the company from the Date Fiscal Patterns table (F0008).
If the duration of the rental contract is equal to or less than the minimum rental period specified in the Rental Constants table (F54R01), the system calculates the contract end date by adding the minimum rental period to the rental contract start date (from the F54R11 table). If the minimum rental period end date is earlier than the billing end date (from the F54R11 table) or the period end date (from the F0008 table), the system uses the minimum rental period end date instead.
The billing method, which is 1 (recurring contract billing) or 2 (one-off contract billing)
The rental billing unit of measure (Rent UM) from the F54R11 table, which the system uses to get the price for billing method 1 (recurring contract billing)
The pricing unit of measure from the F54R11 table, which the system uses to get the price for billing method 2 (one-off contract billing)
Quantity from the Quantity Open field in the Rental Contract Entry program (P54R10), when the billing method is 1 (recurring contract billing)
When the billing method is 2, the quantity is retrieved from the Quantity field in the Rental Contract Entry program.
The billing duration that the system calculates based on the rental billing unit of measure for billing method 1 (recurring contract billing)
The system does not populate the billing duration for billing method 2 (one-off contract billing).
The rental rate, which is the unit price (in transaction currency) from the F54R11 table
For a variable exchange rate, the rental rate depends on the value in the Exchange Rate Date Basis processing option for the R54R402 program.
The rental currency, which is the transaction currency in the F54R10 table
The unrecognized revenue, which is calculated using the formula:
Unrecognized Revenue = Billing Duration * Rental Rate * Quantity
The unrecognized revenue is in the billing currency.
The billing currency from the F54R10 table
Before you complete the tasks in this chapter, you must set up the fiscal date pattern for the company in the Fiscal Date Patterns program (P0008).
Select Periodic Processing (G54R20), End of Period Unrecognized Revenue
Processing options enable you to specify the default processing for programs.
Enter a company for which the system will process unrecognized revenue.
If you leave this processing option blank, the system prints an error in the report.
Specify the period through which the system calculates unrecognized revenue.
Specify the fiscal year through which the system calculates unrecognized revenue.
Specify the date that the system uses to retrieve the exchange rate for the billing amount when the rental contract is set to use a variable exchange rate. If the contract uses a fixed exchange rate, the system uses the exchange rate date in the Rental Contract Header table (F54R10). Values are:
Blank: Use the system date.
1: Use the line-billed-from date.
2: Use the period end date.