37 Work with Revenue Recognition (Release A9.3 Update)
This chapter includes the following tasks.
37.1 Entering Invoices into Revenue Recognition
Entering invoices into revenue recognition includes the following tasks:
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Automatically Entering Invoices into Revenue Recognition
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Manually Entering Existing Invoices into Revenue Recognition
37.1.1 Automatically Entering Invoices into Revenue Recognition
As you create invoices, the system moves them into the revenue recognition process based on the trigger configuration records that you set up for the invoices. Following are some of the programs you can use to create invoices and automatically move invoices into the revenue recognition process:
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Standard Invoice Entry
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Speed Invoice Entry
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Recurring Invoices
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Interest Invoices
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Finance Charge Invoices
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Sales Update
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A/R to G/L Journal Entries
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Batch Invoice Processing
You can include sales order invoices, including interbranch invoices, in the revenue recognition process using the Sales Update program (P42800). The program includes sales order revenue and COGS into the revenue recognition process and stores the data in the F03117. When you create sales order invoices, you must create revenue and COGS as part of the sales order invoice.
This program does not add the invoices into the revenue recognition process if you set the Summarize Cost of Goods and Inventory G/L Entries processing option to summarize entries into a separate batch.
You can create A/R and A/P batches for interbranch sales (vs. G/L entries only). If you do not want to include interbranch invoices, JD Edwards World suggests you set up trigger configurations that exclude these document types. P42800 accesses P03503 to include the interbranch invoices into revenue recognition. If there are any errors, a message prints on the Sales Update Sales report instructing you to review the R03503 report for details. You should correct any errors and run P03503 to add the interbranch invoices as a separate process.
As part of the revenue recognition process, the Revenue Account field of each sales order expense line in the Account Ledger table (F0911) indicates the type of expense, as follows:
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1 - Revenue
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2 - COGS
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3 - Inventory
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4 - Tax
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X - Other (for example gain/loss)
When you recognize revenue, you can recognize the COGS separately from the revenue because it is not tied explicitly to the invoice pay item.
See Update Sales Information in the JD Edwards World Sales Order Management Guide
If you use the Create A/R and G/L Entries program (P48199) to create invoices for Contract Billing and Service Billing, P48199 accesses the Batch Invoice to Revenue Recognition program (P03503) to add the invoices into the revenue recognition process. P03503 issues a report that includes the following:
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Lists contract billing and service billing invoices it adds to the revenue recognition process.
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Error messages for any invoice that it could not add due to errors.
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A message if none of the invoices are eligible for revenue recognition. The program issues this message so you are aware that the program was accessed as expected.
JD Edwards World recommends that you correct any invoices with errors listed on the report and then run P03503 to enter those invoices into revenue recognition.
37.1.2 Manually Entering Existing Invoices into Revenue Recognition
When you need to enter an existing invoice into the revenue recognition process, you can use one of the following methods:
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Entering Invoices into Revenue Recognition using Batch Processing
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Entering Invoices into Revenue Recognition using Standard Invoice Entry
37.1.2.1 Entering Invoices into Revenue Recognition using Batch Processing
To enter multiple invoices into revenue recognition, run the Batch Invoice to Revenue Recognition program (P03503). This DREAM Writer is based on the A/R Ledger table (F0311).
You can process A/R, Sales Order, Contract Billing, and Service Billing invoices using this program. You can also include interbranch sales invoices, which might originate when you run the Sales Update program (P48200).
The invoices can be posted or unposted and must not exist in the revenue recognition system.
The program adds the invoice data to the F03116 and the distribution data to the F03117. The program stores the revenue and PLA accounting data in the F0911 with the FB document type journal entry, in the RR batch. The program enters a 1 in the Revenue Recognition Indicator field (RPFK01)of the F0311.
The program bypasses the following types of invoices:
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Receipt Generated Invoices (Unapplied Cash (RU), Chargebacks (RB), Drafts (R1))
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Real Estate Invoices (Purchase Document Type LS and LR)
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Netting Invoices (Document Type NO)
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Voided Invoices (RPTRTC = V)
The program prints the Revenue Recognition - Invoice Add to RR Process Report (R03503) that lists:
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Invoices added into the revenue recognition system. The invoice displays on the report along with the revenue recognition journal entry document for this invoice.
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Accounting information associated with the invoice, if you have set the Print Report Selection processing option to do so. This includes the revenue or COGS amount, the PLA account and amount, and the total per invoice.
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Errors that prevent the invoices from being added. You should review the errors, make corrections, and then run this program to add the invoices.
Errors that the program can encounter include:
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Locating the invoice via the A/R Functional Server.
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Locating the invoice distribution via the G/L Functional Server.
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Retrieving or updating the RN AAI for the revenue PLA or the 4225 DMAAI for the COGS PLA. If the program cannot retrieve the AAI, the program displays the object account of the distribution line for the PLA it is attempting to locate. If the program retrieves the PLA object account and it does not exist, has an invalid posting edit code, etc. the program displays this account on the report.
Note:
The system restricts sales order invoices that exist in your system prior to installing the revenue recognition software from revenue recognition processing. The data necessary for revenue recognition processing does not exist in these sales order invoices.What You Should Know About Processing Options
| Processing Option | Description |
|---|---|
| Trigger Processing | When you use Standard Invoice Entry (P03105) to add an invoice to revenue recognition, P03105 accesses P03503. P03503 disregards this processing option in this situation. The system adds any invoice when using P03105 unless an error occurs.
P03503 disregards this processing option for interbranch invoices from Sales. For interbranch invoices, the system always evaluates invoices using the trigger configuration setup. P03503 disregards this processing option when you use the Create A/R and G/L Entries program (P48199) to create invoices for contract billing and service billing. P48199 accesses P03503. The system always evaluates invoices using the trigger configuration setup. |
| G/L Date | When you use Standard Invoice Entry (P03105) to add an invoice to revenue recognition, P03105 accesses P03503. P03503 disregards this processing option in this situation. You must enter the G/L Date in the interactive window. If you want to use the same G/L Date as the invoice you are adding, you must enter it.
For interbranch invoices, the G/L Date the program uses is always the same date as the Invoice G/L Date. |
| Automatic Post Bypass | JD Edwards World recommends you do not bypass the post. The post status of the FB document and the invoice should be the same status.
If you use the Create A/R and G/L Entries program (P48199) to create invoices for Contract Billing and Service Billing, P48199 accesses P03503. P03503 does not access and run the Post program in this situation and disregards this processing option. The system does not post the invoices. |
From Accounts Receivable (G03), choose Revenue Recognition
From A/R Revenue Recognition (G0316), choose Batch Add Invoice to Rev Rec
37.1.2.1.1 Processing Options
See Section 102.11, "Batch Invoice Add to Revenue Recognition (P03503)" for more information.
37.1.3 Entering Invoices into Revenue Recognition using Standard Invoice Entry
To add an individual invoice into revenue recognition you can use the Standard Invoice Entry program (P03105). After you locate the invoice, you choose Add Invoice to Revenue Recognition (F20) to access the Revenue Recognition window (P03116W1) to add the invoice. You must complete the G/L Date and Eligible for Recognition fields and choose Continue (F6). P03105 then runs the Batch Invoice to Revenue Recognition program (P03503). You can set a processing option for P03105 to specify which version of P03503 you want to run. See Entering Invoices into Revenue Recognition using Batch Processing for more information about P03503.
When you add an individual invoice, the program disregards the Trigger Processing, Eligible for Recognition Date, and G/L Date processing options from P03503. The program does not use the triggers you set up for revenue recognition processing.
You can enter a G/L date and the Eligible for Recognition Date for the invoice. If you leave either field blank, the program uses the current system date.
You must press F6 to submit the invoices into the revenue recognition process.
The program displays *REV* in the upper left area of the screen to indicate that the invoice is in the revenue recognition process. If errors occur, the error displays on the screen instructing you to review the Revenue Recognition - Invoice Add to RR Process Report (R03503) for detailed error messages. After correcting the errors you can submit the invoice again.
Note:
The system restricts sales order invoices that exist in your system prior to installing the revenue recognition software from revenue recognition processing. The data necessary for revenue recognition processing does not exist in these sales order invoices.| Topic | Description |
|---|---|
| Customer Ledger Inquiry program (P032002) | When you use the Customer Ledger Inquiry program (P032002) to locate an invoice you can access the Standard Invoice Entry program (P03105) to enter the invoice into revenue recognition. |
| Contract Billing and Service Billing Invoices | You can include invoices from the Contract Billing and Service Billing systems into the Accounts Receivable revenue recognition process using P03105. |
37.2 Recognizing Revenue
Although there are many ways to recognize revenue, the process begins with the invoice pay item, which represents the contract or obligation.
Note:
After you enter a sales order invoice into the revenue recognition process, you cannot change the invoice.This section includes the following tasks:
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Recognizing Revenue for Pay Items or Invoices
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Recognizing Revenue for Invoices using Batch Processing
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Ensure that Recognition Reason Code, UDC 03/RR, is set up.
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Ensure that all invoices are posted.
37.2.1 Recognizing Revenue for Pay Items or Invoices
Use the Revenue Recognition - Invoices program (P03116), a workbench, to recognize revenue for individual or multiple invoices. P03116 allows you to:
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Locate specific invoices.
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Recognize revenue for individual pay items or entire invoices.
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Review and update revenue recognition information for invoices.
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Access related programs that display more information about each invoice.
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Remove invoices from the revenue recognition process.
You must enter data into one of the header fields below. You can also enter data into any or all of the fields to limit the display:
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Customer
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Parent
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Batch Number
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Invoice Number From/Thru
You can enter a value in the remaining fields to further limit the detail that displays. You can use the Type of Date field in conjunction with the Date From/Thru fields. You specify the type of date (G/L, Invoice, Net Due, or Statement) you want the system to search for in the Date From/Thru fields when locating invoices.
The program displays basic information about the invoices in the revenue recognition process, including the recognition amounts for each invoice pay item, the last date of recognition, and the reason codes associated with any recognition, if a reason code exists.
The data can be summarized by document, and several operations restrict you to using one mode or the other. The pay item, status, and post status can be different for each pay item and the system manages these as follows when there is more than one value for the summarized lines:
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Pay Item contains an * (asterisk) if there is more than one pay item.
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Revenue Recognition Status is * or 0 if all of the pay items do not have the same status.
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If all pay items are partially or fully recognized (Status field is 2 or 3), the system displays an *.
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If any pay items are not posted or not ready for recognition, 0 displays. The system prevents you from recognizing the invoice.
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Posted field is blank if all pay items are not posted.
Note:
If you change an amount for a posted pay item using Standard Invoice Entry (P03105), the system changes the value in the Revenue Recognition Status to 0 for the pay item. You cannot recognize the pay item and you must post the new G/L distribution line for the pay item.You can recognize an invoice several ways from this program:
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Blind Recognition: Recognize the entire invoice in Summary Mode Only by entering 1 in the Option field. Using this method, the program processes the invoices you select using the Revenue Recognition - Batch Recognition program (P03502), a DREAM Writer.
When performing a blind recognition, the program displays a G/L Date Entry window so that you can enter a G/L date for all of the invoices. If you leave the G/L Date field blank, the program uses the current system date. You can optionally enter a reason code to apply to the invoices in the Revenue Recognition Invoice table (F03116) and to all of the distribution lines recognized in the F03117. You must press F6 to recognize the invoices.
When the program successfully processes the invoices, the workbench redisplays and the amounts for the invoices are now displayed in the Amount Recognized field. If the batch program encounters an error, the program displays an error message instructing you to review the report. The program produces a report only if there are errors. You should fix any errors and submit the invoices for recognition again.
The best practice is for you to review and set the processing options for P03502 prior to submitting the invoices. Not all of the processing options apply to this revenue recognition method.
See Recognizing Revenue for Invoices Using Batch Processing for more information about P03502.
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Guided Recognition: Recognize the entire invoice in Summary Mode Only by entering 2 in the Option field. When you use this method, the Recognize Distribution program (P031163) displays all the distribution for the invoice. You can enter the G/L date and Reason Code in the header of this screen. You can also review the invoice and exit the program without recognizing revenue.
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Recognize pay items in Detail Mode Only by entering 3 in the Option field. When you use this method, the Recognize Distribution program (P031163) displays all of the distribution for the invoice. You can enter the G/L date and Reason Code in the header of this screen as well as change the amount of the pay item you want to recognize. You can recognize the full revenue amount, less than, or more than the remaining amount. When recognizing less than the revenue amount, you can choose to close the remaining amount or leave the remaining amount open. In the detail area of the screen, you can allocate the amount you want to recognize to the appropriate distribution accounts and enter the reason code for those amounts.
For Sales Order invoices, if you set the Allow Recognition of COGS processing option, and there is unrecognized COGS for that sales order invoice, the Recognize COGS program (P031164) automatically displays after you click Enter on P031163. If you prefer not to set this processing option, you can perform this manually by entering 15 in the Option field.
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Recognize COGS in Detail Mode Only by entering 4 in the Option field. Using this method, the system displays the Recognize COGS program (P031164) and you can view all the COGS distribution that is available to recognize for the invoice. You can enter the G/L date and reason code in the header of this screen. You can recognize the full COGS amount, less than, or more than the remaining amount. When recognizing less than the COGS amount, you can choose to close the remaining amount or leave the remaining amount open. If you recognize more than the full COGS amount, the system stores the amount that exceeds the full amount (overage) in the RO AAI COGS Adjustment Performance Liability Account.
You can also:
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Access the Revenue Recognition Details program (P031161) by entering 5 in the Option field to review the details of the invoice. You cannot make any changes on this screen.
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Access the Standard Invoice Entry program (P03105) by entering 10 in the Option field. The program displays *REV* in the upper left area of the screen to indicate that the invoice is in the revenue recognition process. You can not make any changes on this screen.
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Access the A/R and A/P Journal Entry program (P03101) by entering 11 in the Option field. You can not make any changes on this screen.
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Access the Journal Entry program (P09101) by entering 12 in the Option field to review the recognition journal entry transactions (FB document type) related to the invoice. You can not make any changes on this screen.
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Access the Activity Review Window (P03240W) by entering 13 in the Option field to review receipt activity.
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Access the Invoice Update program (P031162) by entering 14 in the Option field to update other invoice information. On Invoice Update:
In detail mode, you can update the Eligible for Recognition Date and Effective Price fields, page up or down to the next pay item, and locate other invoices and pay items.
In summary mode, the Pay Item field contains an * (asterisk) and you are restricted to changing only this invoice. You can change only the Eligible for Recognition Date field and it applies to all pay items for that invoice with amounts that remain to be recognized. You can not change the value in the Effective Price field.
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Access the Recognize Distribution program (P031163) and then the Recognize COGS program (P031164) by entering 15 in the Option field to recognize revenue and COGS (Detail Only).
You can remove an invoice (summary mode only) from the revenue recognition process by entering 9 in the Option field. P03116 accesses the Revenue Recognition - Batch Invoices Removed from RR Process program (P03504) which deletes the invoice. The invoice no longer displays on P03116. If an error occurs, the program displays an error message. You can set the DREAM Writer Versions processing option for P03116 to specify which version of P03504 you want to use. See Section 37.4, "Removing Invoices from Revenue Recognition" for more information about P03504 and removing invoices from revenue recognition.
You can also use the Summarize Pay Item Toggle (F10) to view summarized invoices.
When multi-currency is active, you can recognize revenue in either the domestic or the foreign currency of the invoice.
You can display currency records using the following methods:
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You can enter a value in the Currency Code field of the Pre-Loaded Data Selections processing option. The program displays that value in the Currency Code field on the screen. The default for this field is an asterisk (*) for the domestic currency and if you leave this field blank, the program uses an asterisk. The program then displays all invoices that meet this criteria and the other criteria in that processing option.
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You can enter a value in the Currency Code field. Using this method, there are two ways to locate currency:
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By entering a specific currency code.
When you enter a currency code as part of the search criteria, only transactions with that currency code display. For example, only USD invoices display when you enter USD in this field. These invoices are domestic USD invoices or foreign invoices with USD foreign currency. Foreign invoices with a base currency of USD do not display with this search criteria.
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By entering an asterisk (*) to display domestic amounts.
When you enter an * in the Currency Code field, the program displays the domestic amounts of all transactions. When the program selects invoices with more than one base currency, multiple currencies display.
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| Topic | Description |
|---|---|
| Blind Recognition | When you use blind recognition, the program disregards the following processing options.
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| Steps to recognize less revenue and leave remainder open | In the header of the Recognize Distribution program (P031163), enter a value in the To Recognize field that is less than the value in the Remaining Rev. field. Enter the same value in the Amount to Recognize field.
To leave the remainder amount open, leave the Close with Less fields blank and click Enter to save the invoice. |
| Steps to recognize less revenue and close remainder | In the header of the Recognize Distribution program (P031163), enter a value in the To Recognize field that is less than the value in the Remaining Rev. field. Enter the same value in the Amount to Recognize field.
To close the remainder amount, enter 1 in the Close with Less fields and click Enter to save the invoice. |
| Steps to recognize more revenue | In the header of the Recognize Distribution program (P031163), enter a value in the To Recognize field that is more than the value in the Remaining Rev. field. Enter the same value in the Amount to Recognize field. |
| Steps to recognize all revenue | In the header of the Recognize Distribution program (P031163), enter a value in the To Recognize field that is equal to the value in the Remaining Rev. field. Enter the same value in the Amount to Recognize field. |
| Steps to recognize less COGS and leave remainder open | In the header of the Recognize COGS program (P031164), enter a value in the To Recognize field that is less than the value in the Remaining Rev. field. Enter the same value in the Amount to Recognize field.
To leave the remainder amount open, leave the Close with Less fields blank and click Enter to save the invoice. |
| Steps to recognize less COGS and close remainder | In the header of the Recognize COGS program (P031164), enter a value in the To Recognize field that is less than the value in the Remaining Rev. field. Enter the same value in the Amount to Recognize field.
To close the remainder amount, enter 1 in the Close with Less fields and click Enter to save the invoice. |
| Steps to recognize more COGS | In the header of the Recognize COGS program (P031164), enter a value in the To Recognize field that is more than the value in the Remaining Rev. field. Enter the same value in the Amount to Recognize field. |
| Steps to recognize all COGS | In the header of the Recognize COGS program (P031164), enter a value in the To Recognize field that is equal to the value in the Remaining Rev. field. Enter the same value in the Amount to Recognize field. |
To recognize revenue for pay items or invoices
From Accounts Receivable (G03), choose Revenue Recognition
From A/R Revenue Recognition (G0316), choose Invoice Workbench
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On Invoice Workbench, complete any or all of the following fields to locate invoices and click Inquire.
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Customer
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Parent
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Batch Number
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Invoice Number From/Thru
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To narrow your search, complete the following optional fields and click Inquire:
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Company
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Batch Number
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Posted
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Invoice Type
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Paid
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Invoice Document Number From/Thru
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Status
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COG S
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Date From/Thru
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Date Type
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Enter 1, 2, 3, or 4 in the Option field based on the type of revenue recognition you want to perform and click Enter.
When you enter 1 in the Option field, the program launches a batch revenue recognition program in summary mode. When you enter 2 or 3 in the Option field, the Recognize Distribution program (P031163) displays. When you enter 4 in the Option field for COGS, the Recognize COGS program (P031164) displays.
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On Recognize Revenue, complete any of the following optional fields and click Enter:
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To Recognize
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G/L Date
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Reason Code
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Close with Less
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Amount to Recognize
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| Field | Explanation |
|---|---|
| Posted | Code indicating whether the system displays posted or unposted items.
Blank = Show posted items only. 1 = Show unposted items only. '*' will be used in the video to show ALL issues or items, regardless of posted status. |
| Invoice Type | This flag will indicate the system that generated the invoice or credit memo.
Blank = Standard Invoice/Credit Memo 0 = Accounts Receivable 2 = Contract Billing 3 = Sales Order Management 4 = Service Billing |
| Paid | This field determines what detail to display based on paid status.
Valid values include: Blank = All detail is displayed, regardless of paid status. 1 = Fully paid detail is displayed 2 = Open detail is displayed (unpaid and partially paid) |
| Status | A user defined code (03/SR) that indicates the current revenue recognition status of an invoice pay item.
Values are: R = Invoice removed from revenue recognition. V = Voided invoice 0 = Not to be recognized 1 = Ready to be recognized 2 = Partially recognized 3 = Recognition complete |
| COGS | A field that indicates the recognition status of the Cost of Goods Sold Distribution that is associated with Sales Order invoices in Revenue Recognition.
Valid values include: Blank = No associated COGS 1 = Associated COGS is not fully recognized. 3 = Associated COGS is fully recognized. |
| Date Type | This field is used to identify which type of date you are using in a video or report.
This flag will most often appear on a video next to a date entry field or range. This flag will serve to indicate what type of date you are entering into the selection fields or which dates you would like to see appear in the detail area. Valid Values include: blank or 0 = Invoice Date 1 = Net Due Date 2 = G/L Date 3 = Statement Date 4 = Discount Due Date |
| Pay Item | A number that identifies a pay item for an invoice. Multiple pay items can define multiple payments against an invoice, multiple items on an invoice, or multiple tax rates. |
37.2.1.1 Processing Options P03116
See Section 102.13, "Revenue Recognition Workbench (P03116) (Release A9.3 Update)"
37.2.2 Recognizing Revenue for Invoices Using Batch Processing
You can use the Revenue Recognition - Batch Recognition program (P03502) to recognize one or multiple posted invoices. You can select one invoice from a batch, multiple invoices from multiple batches, or you can use the data selection to select batches of invoices. This DREAM Writer is based on the Revenue Recognition join table F03116JC, which includes the data from the A/R Revenue Recognition - Invoices (F03116) and A/R Ledger (F0311) tables.
When you use batch processing to recognize revenue, the program uses the G/L Date you set in the processing option. If you leave the G/L Date blank, the program uses the current system date. You can also enter a reason code in the processing option that applies to the invoices in the Revenue Recognition Invoice table (F03116) and to all of the distribution lines recognized in the F03117. This code also appears in the journal entry records in the Revenue Recognition Reason Code field in the F0911.
The program prints a report that lists the recognized invoices as well as the journal entry document for the invoice. You can also choose to print all of the accounts from the revenue distribution on the report. The report includes the errors for invoices that were not processed successfully.
From Accounts Receivable (G03), choose Revenue Recognition
From A/R Revenue Recognition (G0316), choose Batch Recognition
37.3 Reviewing the G/L Distribution
You can use the Invoice Distribution program (P03117) to locate and review the G/L distribution for invoices. You can locate revenue recognition invoices based on specific expense accounts or expense information. You can then access the Invoice Workbench (P03116) to recognize or work with revenue recognition invoices.
You must enter a value into any or all of the following header fields to limit the display:
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Document Number/Document Type/Document Company
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Account Number
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Business Unit
The program displays basic information about the invoice distribution in the revenue recognition process. This includes the recognition amounts for each distribution line, the last date of recognition, and the reason codes associated with any of the recognition.
Additionally, you can choose Summarize by Account/Document (F10) to summarize by account within an invoice.
37.3.1 Multi Currency Processing
When multi-currency is active, you can enter a value in the Currency Code field to restrict the display of records to a specific currency. Using this method, there are two ways to locate currency:
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By entering a currency code.
When you enter a currency code as part of the search criteria, only transactions with that currency code display. For example, only USD invoices display when you enter USD in this field. These invoices can be domestic or foreign USD invoices.
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By entering an asterisk (*) to display domestic amounts.
When you enter an * in the Currency Code field, the program displays the domestic amounts of all transactions. When the program selects invoices with more than one base currency, multiple currencies display.
From Accounts Receivable (G03), choose Revenue Recognition
From A/R Revenue Recognition (G0316), choose Distribution Workbench
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On Distribution Workbench, complete any or all of the following fields to locate invoices and click Enter.
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Document Number/Document Type/Document Company
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Account Number
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Business Unit
Figure 37-2 Distribution Workbench screen
Description of ''Figure 37-2 Distribution Workbench screen''
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To narrow your search, complete any of the following optional fields:
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COGS
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Customer Number
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Status
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Recognition Date From/Thru
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Reason Code
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Enter 1 in the Option field to access the Invoice Workbench (P03116) and click Enter.
| Field | Explanation |
|---|---|
| COGS | A field that indicates whether a record represents or originated from Cost of Goods Sold.
Blank = The record does not represent or originate from Cost of Goods Sold. 1 = The record represents or originated from Cost of Goods Sold. |
| Status | A user defined code (03/S1) that indicates the current revenue recognition status of an invoice pay item.
Values are: R = Invoice removed from revenue recognition. V = Voided invoice 2 = Partially recognized 3 = Recognition complete |
| Reason Code | A user defined code (03/RR) that indicates the reason an invoice is not fully recognized.
Possible Reasons may include: P = Effective Price Difference N = Non Revenue Invoice Pay Item |
37.4 Removing Invoices from Revenue Recognition
You use the Revenue Recognition - Batch Invoices Removed from RR Process (P03504), a DREAM Writer, to remove invoices from the revenue recognition process that might have been included incorrectly. You cannot remove an invoice from the revenue recognition process if any revenue or COGS amount has been recognized. This included partial recognition of revenue on an invoice.
This program is based on the A/R Ledger table (F0311) and the data selection is set to choose only invoices currently in the revenue recognition process.
Caution:
JD Edwards World strongly recommends that you review your data selection carefully. Restoring invoices that you remove incorrectly can be very time consuming. It requires that you enter the invoices into the revenue recognition system again and, if necessary, recognize the revenue again. JD Edwards World recommends that you always have backup data available.
If the Purge - A/R Revenue Recognition - Invoices (F03116P) and Purge - A/R Revenue Recognition - Invoice Distribution (F03117P), the purge tables for F03116 and F03117, contain the revenue recognition data, you can use that information to assist you in recreating the revenue recognition data in your system.
This program performs the following when removing invoices:
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Marks the F03116 invoice data and F03117 distribution data with a status of R (removed) and saves it in the Purge - A/R Revenue Recognition - Invoices (F03116P) and Purge - A/R Revenue Recognition - Invoice Distribution (F03117P) tables.
You can bypass the purge of the F03116 and F03117 by setting the Purge Files processing option.
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Clears the Revenue Recognition Indicator field on the invoice in the A/R Ledger table (F0311).
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Deletes or voids the F0911 FASB Revenue Recognition (FB) journal entry associated with this invoice, based on posted status.
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Posts the F0911 FB journal entries that the system creates if it performs a void.
You can bypass this by setting the Automatic Post Bypass processing option.
The program prints a report that lists all of the invoices it removed. For those invoices it removes, it displays the journal entry document associated with this invoice. If an error occurs that prevents the invoice from being removed, the report displays the error next to the invoice information.
When you remove a single invoice from revenue recognition using a selection option on the Invoice Workbench (P03116), P03116 accesses a version of this program. P03504 uses the data from the single invoice and not the data selection from the DREAM Writer. JD Edwards World recommends that you use P03116 to remove single invoices from revenue recognition.
From Accounts Receivable (G03), choose Revenue Recognition
From A/R Revenue Recognition (G0316), enter 27
From A/R Advanced and Technical Operations (G03131), choose Remove Invoices from Rev Rec
See Section 102.12, "Remove Invoices from RR Process (P03504)"
You cannot change the data selection. It is set to select only those invoices in the revenue recognition system with a value of 1 in the Revenue Recognition Indicator field in the A/R Ledger table (F0311).
If you add additional selection criteria, JD Edwards World strongly recommends that you use caution as to not remove invoices erroneously.
Do not change the data sequence. It is set to sequence by batch and then by document information. Unpredictable results can occur if you change the sequence.
37.5 Reversing Revenue Recognition
Use the Revenue Recognition - Invoices program (P03116) to reverse the revenue recognition on an invoice in the revenue recognition process. You can reverse recognition on all types of revenue recognition: recognize less and leave remainder open, recognize less and close the remainder, recognize more, and recognize all.
Review how the system updates tables when you reverse recognition for an invoice:
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In the F03116 table, the system resets the values in the following fields of the relevant records: domestic or foreign revenue recognition amounts, remaining amounts, and amounts not recognized, and revenue recognition status.
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If the invoice recognition is not posted, the system deletes the revenue and COGS G/L entries that were generated by the original recognition process from the F0911 table. The system also deletes the F0911 entries that cleared the PLA, PLA Adjustment, COGS PLA, and COGS PLA Adjustment G/L entries created during the recognition process.
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If the invoice recognition is posted, the system voids the revenue and COGS G/L entries that were generated by the original recognition process from the F0911 table. The system also voids the F0911 entries that cleared the PLA, PLA Adjustment, COGS PLA, and COGS PLA Adjustment G/L entries created during the recognition process.
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In the F03117 table, the system resets the values in the fields of the relevant records.
To reverse revenue recognition
From Accounts Receivable (G03), choose Revenue Recognition
From A/R Revenue Recognition (G0316), choose Invoice Workbench
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When you select the Summarize Pay Item Toggle (F10) on the Invoice Workbench, select a record and select Reverse Recognition from the Row menu.
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Enter a value in the Void G/L Date field:
Enter a date that specifies the financial period to which the voided transaction is to be posted.
37.6 Purging Revenue Recognition Data
To reduce the number of records in you system, you can purge unwanted or outdated data from your system. JD Edwards World recommends that you use both of the following programs, in the following order, to purge records in the revenue recognition system:
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Purge Closed A/R Records program (P03800) - purges invoices and associated revenue recognition data in the F03116 and F03117 tables.
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Purge Prior Year JEs (P09911) - purges revenue recognition journal entries if the associated invoice does not exist in the system.
Purging revenue recognition data includes the following tasks:
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To purge invoices in the revenue recognition system
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To purge the FASB Revenue Recognition (FB) journal entry records.
To purge invoices in the revenue recognition system
After you recognize all revenue for an invoice, including COGS for sales order invoices, you use P03800 to purge the following from the F03116 and F03117:
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Invoices with the following status:
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Posted
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Paid
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Void
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Removed
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Data associated with the invoice in the revenue recognition system.
The program saves the data in the Purge - A/R Revenue Recognition - Invoices (F03116P) and Purge - A/R Revenue Recognition - Invoice Distribution (F03117P) tables.
See Section 99.1, "Purging Closed A/R Records" for additional information about this purge program.
From Accounts Receivable (G03), enter 27
From A/R Advanced and Technical Setup (G0331), choose Purge Closed A/R Records
To purge FB journal entry records
You use P09911 to purge posted revenue recognition journal entries, Document Type FB and Batch Type RR. If the program locates an associated invoice in the F0311 table, the program does not purge the journal entries. If the invoice is not found, the program purges FB journal entries when they meet the purge criteria that you set up.
See Purge Prior Year Journal Entries in the JD Edwards World Sales Order Management Guide for more information.
From General Accounting (G09), choose G/L Advanced & Technical Operations
From G/L Advanced & Technical Operations (G0931), Summarize & Purge Data
From Summarize & Purge Data (G09317), choose Purge Prior Year JEs