22 Revenue Recognition for Real Estate Management (Release 9.2 Update)

This chapter provides an overview of the revenue recognition process for Real Estate Management.

22.1 Understanding Revenue Recognition for Real Estate Management

Business processes and financial standards outline when you can recognize revenue for the amounts you bill to customers. You cannot recognize revenue for billed amounts until the performance obligation to the customer is satisfied.

The JD Edwards EnterpriseOne system has been updated to enable users to include invoices that are generated in the Real Estate Management system in the revenue recognition process in the Accounts Receivable system. This update ensures that your system recognizes revenue at the appropriate time.

Before you begin processing revenue recognition for Real Estate Management invoices, Oracle recommends that you have a complete understanding of the revenue recognition process in the Accounts Receivable system. See Understanding Revenue Recognition in the JD Edwards EnterpriseOne Applications Accounts Receivable Implementation Guide.

This list outlines the process that you can use to include invoices generated by the Real Estate Management system in the revenue recognition process:

  1. Set up revenue recognition AAIs and activate revenue recognition processing.

    See Setting Up Revenue Recognition (Release 9.2 Update) in the JD Edwards EnterpriseOne Applications Accounts Receivable Implementation Guide.

  2. Set up triggers and configuration information for Real Estate Management.

    You use triggers and configuration information to specify which real estate invoices you want to include in the revenue recognition process.

    See Setting Up Revenue Recognition (Release 9.2 Update) in the JD Edwards EnterpriseOne Applications Accounts Receivable Implementation Guide.

  3. Enter leases and generate billings from the Real Estate Management system.

    This includes manual, recurring, and escalated billings, and billings for revenue fees, sales overages, and expense participation. The way that you generate or create billing records in the Real Estate Management system has not changed.

  4. Generate the Billing Edit Register Report (R15300).

    This program has been updated to compare billing records to the revenue recognition trigger and configuration setup to determine whether the billing record will be included in the revenue recognition system when the associated invoice is created. If there are errors on this report, you must fix them and rerun before moving to the next step.

    See Section 6.4, "Generating the Billing Edit/Register Report" for additional information.

  5. Run the Post RE Invoices and Post RE Vouchers program (R15199).

    This program generates invoices from your real estate billing records. The program has been updated to compare billing records against the revenue recognition trigger and configuration setup to determine whether an invoice should be included in the revenue recognition process.

    See Section 6.6, "Posting Invoices and Vouchers" for additional information.

  6. If necessary, generate revenue fee invoices using the Revenue Fee Generation program (R15105).

    This program has been updated to compare fee invoices against the revenue recognition triggers to determine if the invoice should be included in the revenue recognition process.

    See Chapter 19, "Processing Revenue Fees" for additional information.

  7. Once an invoice is created, you can use the Tenant Ledger Inquiry program (P15222) to review the G/L Distribution for that invoice.

    This program has been updated to display a new form, Revenue Recognition G/L Distribution, for invoices that are included in the revenue recognition process.

    See Section 7.10.2, "Reviewing Transactions Invoices" for more information.

  8. Now that the invoice is included in the revenue recognition process, you use the programs in the Accounts Receivable system to process those invoices and recognize revenue.

    See Recognizing Revenue and Cost of Goods Sold (Release 9.2 Update) in the JD Edwards EnterpriseOne Applications Accounts Receivable Implementation Guide.