Generating Contract Liability Accounting Entries
This topic discusses how to generate Contract Liability Accounting Entries.
To enter a bill with contract liability accounting parameters:
Ensure that you select the Enable Contract Liability Flag on the Installation Options - Billing - Integration Options page.
Set the revenue recognition basis on the Standard Billing - Line - Info 2 page to something other than blank or invoice date.
If you established a revenue recognition basis at the bill type or at the charge identifier level, the system uses that value as a default. You can override the default on this page
Enter a revenue recognition basis date or date range for a future accounting period.
The page that you use to enter the date or date range depends on the revenue recognition basis that you select on the Standard Billing - Line - Info 2 page. Options are:
If the Revenue Recognition Basis is:
Enter the date or date range on:
From/To Date.
Standard Billing - Line - Info 1 page.
Contract Date.
Standard Billing - Line - Info 2 page in Contract/Date field.
Invoice Date.
Standard Billing - Header - Info 1 page.
Order Date.
Standard Billing - Line - Order Info page in the Ord Date (order date) field.
Ship Date.
Standard Billing - Line - Order Info page in the Ship Date field.
Start/End Date Range.
Standard Billing - Line - Project Info page in the Start Date and End Date fields.
User Date 1.
Standard Billing - Line - Misc Info page.
User Date 2.
Standard Billing - Line - Misc Info page.
Establish deferred account distribution information.
If you establish contract liability distribution codes on the Distribution Code page, those values are used as the default values on the Standard Billing - Acctg - Deferred page. You can override the bill line deferred account distribution information by entering a deferred type distribution code or specific ChartField information.
Enter deferred account distribution codes for discounts and surcharges, if present.
If you establish deferred account distribution codes for discounts and surcharges on the Distribution Code page, you can override the defaults by entering ChartField information on the Standard Billing - Disc/Surcharge Distribution page or by entering a distribution code on the Standard Billing - Discount/Surcharge page.
To generate contract liability accounting entries:
Change the bill status to RDY on the Standard Billing - Header - Info 1 page.
Run the Bill Finalization process (BIIVC000) to create the invoice, and change the bill status to INV.
Run the Currency Conversion process (BICURCNV) to calculate base and euro currency values and store them in the currency for the bill.
Run the Pre-load process (BIPRELD) to prepare accounting information for subsequent processing.
Run the Load GL (general ledger) process (BILDGL01).
The Load GL process generates accounting entries for current and all future accounting periods. The Load GL process does not pass to the general ledger any statistical data entries that are prorated into future periods.
Note: The general ledger system must be set up to accommodate contract liability accounting entries. For example, it must accept future-dated entries or it must bypass them until the appropriate accounting periods.