Recognizing Revenue and Cost of Goods Sold Automatically

To automatically recognize revenue and cost of goods sold (COGS) for invoices, you can use the Revenue Recognition - Blind report (R03B116). You can use this report to recognize all of the revenue and COGS for one or more invoices.

(Release 9.2 Additional Update) To recognize revenue for invoice that have a schedule attached to them, you run the Revenue Recognition for Schedule program (R03B1151). This program processes all records that are eligible for recognition during the period specified in the processing options. Once the record is processed, it no longer appears in the schedule for that invoice. Once all schedule records for an invoice have been processed, the schedule is no longer attached to the invoice.

Note that you cannot create schedules for invoices generated through the Sales Order Management system, as the schedule process does not include COGS.

To select invoices for which to automatically recognize revenue, you must use data selection on the R03B116. When the system uses data selection to select a pay item on an invoice, the system recognizes revenue for the entire invoice.