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. See: Overview of AutoAccounting.
Borrowed and Lent Revenue
Oracle Projects creates borrowed and lent revenue distribution lines for projects that use a distribution rule of WORK and has borrowed and lent AutoAccounting rules enabled.
If borrowed and lent is enabled for labor, Oracle Projects creates borrowed and lent revenue distribution lines for each labor expenditure item for which the employee organization is different from the project organization.
If borrowed and lent is enabled for usage, Oracle Projects creates borrowed and lent revenue distribution lines for each usage expenditure item for which the non-labor resource organization is different from the project organization.
You can specify the percent to use for borrowed and lent revenue by setting the PA: Borrowed Lent Percentage Amount profile option. For example, you company may have a policy that a borrowing organization receives 20% credit for revenue, while the receiving organization gets 80% of the revenue. Assuming your AutoAccounting setup credits the revenue to the lending organizations, your borrowed and lent percentage is 20%.
Revenue
Oracle Projects creates these transactions during the revenue generation process.
Invoice
When invoices are interfaced to Oracle Receivables, Oracle Projects runs AutoAccounting to determine the appropriate general ledger accounts.
Invoice
Oracle Projects creates this entry when the Interface Invoices to Oracle Receivables process is run.
Collections
Oracle Receivables creates this entry.
Examples of Revenue and Invoice Accounting Transactions
Example 1: Accrue prior to billing
Example 2: Invoice prior to accrual
Example 3: Accrue prior to invoicing and invoice partial amount of work
Example 4: Pre-bill and accrue more than pre-bill
