Reversing Revenue

Page Name	Definition Name	Usage
Contract Reversal Page	CA_REVERSE_HDR	Reverse all accounting entries created for a specific amount-based (price type of amount or percent) contract. You can also reverse billing for an entire contract.
Contract Liability Reversal Page	CA_REVERSE_DFR	Reverse contract liability accounting entries created for a specific amount-based (price type of amount or percent) contract.

PeopleSoft Contracts enables you to reverse revenue that has been generated, by the amount and contract liability processes, or journaled by the Journal Generator process. When you reverse revenue, the system generates reversing entries that back out each original entry. You do not enter any new accounting information into the system.

You can reverse revenue previously recognized for an entire contract, a single revenue plan, or a single revenue plan event. You can reverse amount-based revenue previously recognized for a revenue plan event only when the status is In Progress or Completed. You can reverse revenue for an entire revenue plan only if the revenue plan status is In Progress or Completed.

When you reverse a revenue plan, the system sets the plan status to Reversal In Progress. The system sets revenue recognition events that are in progress or complete to Reversal Initiated. The LOAD_GL1 process picks up the Reversal Initiated (RIN) events and sets them to Reversal In Progress. The LOAD_UPD process updates Reversal In Progress (RIP) events to Reversed. If no events have a status of RIN or RIP, then the LOAD_UPD process sets the revenue plan status to Reversed.

When you reverse a revenue recognition event, the system sets the events status to Reversal Initiated and the revenue plan status to Action Required. The LOAD_GL1 process picks up the event and creates the reversing accounting entry, and it updates the event status to Reversal In Progress. Then, the LOAD_UPD process updates the status to Reversed when the Journal Generator has picked up the entry.

Warning! Before journal generating reversing accounting entries with the Journal Generator process, you must journal-generate the original accounting entries.

Note: If you want to create reversing entries for contract liability, you must run the LOAD_DEF process in addition to running the LOAD_GL1 process.

This table lists the events that may trigger a contract revenue reversal:

Reason	Effect
Change in revenue recognition method.	Revenue plan needs to be reversed.
Change in revenue plan event status.	Revenue plan event needs to be reversed.
Change in revenue plan schedule for previously booked events.	Revenue plan events need to be reversed.
Whole contract negated.	All accounting associated with the contract needs to be reversed.

This table provides more details about the field-level changes that need to occur to initiate a reversal, the pages where you make the field-level changes, and the Application Engine process that you need to run to process the change:

Reason	Action and Field Level	Initiated From
Change in revenue recognition method.	Revenue plan needs to be reversed.	Review Revenue - Plans page
Revenue plan event was incorrectly set to Ready and booked.	The revenue plan event needs to be reversed.	Review Revenue - Events page
Change accounting distribution for future bookings of a contract line.	The accounting distributions for the contract line must be updated. You must add a new effective-dated row.	Accounting Distribution page Accounting Rules page
Change start date, end date, or schedule on a revenue plan.	Revenue plan needs to be reversed. Then, unassign the contract lines and reassign them to another revenue plan. Alternatively, reverse the events on the plan instead of reversing the entire revenue plan.	Review Revenue - Plans page
Reverse contract (negate contract completely).	Entire contract needs to be reversed.	Contract Reverse Header page

Note: You cannot reverse revenue events for Percent Complete revenue plans. However, you can enter a smaller total percent complete, which initiates a negative incremental event.

Warning! If you use the PeopleSoft Commitment Control option in PeopleSoft Receivables and you change the revenue distribution after payments have been posted in PeopleSoft Receivables, you must create manual journal entries for the budget in order to keep the collected revenue in sync.

Use the Contract Reversal page (CA_REVERSE_HDR) to reverse all accounting entries created for a specific amount-based (price type of amount or percent) contract.

You can also reverse billing for an entire contract.

Navigation:

Customer Contracts > Adjust Revenue and Billing > Reverse Contract > Contract Reversal

Contract Reversal Detail

Field or Control	Description
Revenue Plans	Select this check box if you want to reverse revenue for all amount-based revenue plans associated with this contract.
Accounting Date	Displays the date on which reversal entries are booked.
Reverse Contract Liability	Select this check box if you want to reverse the contract liability associated with this revenue plan. This check box is available if your contract contains lines with contract liability already processed.
Billing Plans	Select this check box if you want to reverse billing for all billing plans associated with this contract. The system generates bills with credit amounts only for billing plans with a method of Percent Complete, Milestone, and Immediate.
Reverse	Click this button to enable the system to reverse revenue plans in a status of In Progress or Complete.

Use the Contract Liability Reversal page (CA_REVERSE_DFR) to reverse contract liability accounting entries created for a specific amount-based (price type of amount or percent) contract.

Navigation:

Customer Contracts > Adjust Revenue and Billing > Reverse Contract > Contract Liability Reversal

Select the contract liability rows that you want to reverse for this contract.

Field or Control	Description
Revenue Plan	Click the link to access the revenue plan for this contract line.
Revenue Method	Displays the associated revenue method for this contract line.
Revenue Plan Status	Displays the associated revenue plan status for this contract line.
Contract Liability Status	Displays the contract liability status for the contract line. When you reverse contract liability, the system sets the status to Reversal Initiated.
Contract Liability Reversal Date	Displays the date on which you processed the contract liability reversal.
Contract Liability Acctg Date	Displays the contract liability accounting date. For a contract line, this is the contract sign date. For an amendment, this is the amendment date. For renewals, this is the renewal cycle start date. Once you reverse contract liability , the system clears this field and it remains blank.
Revenue Amount	Displays the revenue amount of contract liability for this contract line.
Reverse Contract Liability	Click to reverse the contract liability for the selected contract lines.

Note: For contract lines that the system has begun processing revenue, you cannot reverse the contract liability unless you also reverse the revenue.

Reversing Revenue

Pages Used to Reverse Revenue

Understanding Revenue Reversal

Contract Reversal Page

Contract Reversal Detail

Contract Liability Reversal Page