Recognizing Revenue
When recognizing revenue, you can recognize less and leave the remainder open, recognize less and close the remainder, recognize more, or recognize all revenue.
From the Revenue Recognition Processing menu (G03B18), select Revenue Recognition.
On the Work with Invoice Revenue Recognition form, select a record and click Select, or select Recognize Revenue from the Row menu.
The system displays the G/L Distribution information for the invoice pay item in the grid. If Tax Capture by Pay Item is on, the system displays the G/L distribution lines for only the selected invoice pay item in the grid.
If the invoice is a foreign invoice, both the domestic and foreign amounts will be displayed. If the invoice is a domestic invoice, only the domestic amount will be displayed. If the invoice is a foreign invoice, you enter the foreign amount.
Note that if the selected line has a schedule, you cannot manually recognize revenue for that line.
Review, and if necessary, select the Summarize option.
- Recognize Revenue Amount
When the Summarize check box is not selected, you can enter the amount of the invoice that will be recognized as revenue in the Recognize Revenue Amount field. When the Summarize check box is selected (guided recognition), the system displays the amount of the invoice that will be recognized as revenue.
- Amount Not Recognized
When the Summarize check box is not selected, enter the amount of the invoice that will not be recognized as revenue. When the Summarize check box is selected (guided recognition), the system displays the amount of the invoice that will not be recognized as revenue.
- Foreign Recognized Revenue Amount
When the Summarize check box is not selected, enter the foreign amount of the invoice that will be recognized as revenue. When the Summarize check box is selected (guided recognition), the system displays the foreign amount of the invoice that will be recognized as revenue.
- Foreign Amount Not Recognized
When the Summarize check box is not selected, enter the foreign amount of the invoice that will not be recognized as revenue. When the Summarize check box is selected (guided recognition), the system displays the foreign amount of the invoice that will not be recognized as revenue.
Enter the G/L date for the revenue recognition transaction. The system uses this value as the G/L date of the invoice.
When recognizing less, recognizing more, or recognizing all revenue, you may enter values in multiple G/L lines in the grid.
If you select the G/L date in the Exchange Rate Date processing option, the system does not use the G/L date to determine the exchange rate during revenue recognition. During revenue recognition, the system uses the exchange rate that was valid when the invoice is created. Therefore, exchange rate fluctuation does not affect how you recognize revenue.
To recognize less revenue and leave the remainder open:
In the header, enter a value in the Revenue Amount field that is less than the value in the Remaining Amount field.
In the grid, enter the same value in the Recognized Revenue Amount field.
Click OK to save the invoice.
The system updates the Reason Code based on your processing option settings.
To recognize less revenue and close the remainder:
In the header, enter a value in the Revenue Amount field that is less than the value in the Remaining Amount field.
In the header, enter the value in the Amount Not Recognized field that the system displays in the Remaining Amount field.
In the grid, enter the same values in Recognized Revenue Amount and Amount Not Recognized fields.
Click OK to save the invoice.
The system updates the Reason Code based on your processing option settings.
To recognize more revenue:
In the header, enter a value in the Revenue Amount field that is more than the value in the Remaining Amount field.
In the grid, enter the same value in the Recognized Revenue Amount field.
Click OK to save the invoice.
The system updates the Reason Code based on your processing option settings.
To recognize all revenue:
In the header, enter a value in the Revenue Amount field that is equal to the value in the Remaining Amount field.
In the grid, enter the same value in the Recognized Revenue Amount field.
Click OK to save the invoice.
The system updates the Reason Code based on your processing option settings.
The system displays a value in the Revenue Rec Status field that indicates the current COGS status of an invoice pay item. Values are:
0: Not to be recognized
1: Ready to be recognized
When you enter and post an invoice, the system displays 1 in this field.
2: Partially recognized
If you recognize part of the invoice amount, the system changes the value in this field to 2.
3: Recognition complete
If you recognize the full invoice amount, the system changes the value in this field to 3.