Understanding Revenue Recognition Trigger Setup for Sales Order Invoices
Before you can use the revenue recognition process, you must define the triggers that the system uses to determine whether to send a sales order invoice to the revenue recognition process.
To select sales order lines from the JD Edwards EnterpriseOne Sales Order system for the revenue recognition process, you must define all three triggers (hierarchy, date, and configuration records):
Set up hierarchy by company in the Revenue Recognition Trigger Setup program (P03B420).
Each organization has different business processes and transaction data that the system uses to determine whether to process an invoice through the recognition process. The system uses specific fields in the transactions to determine whether to submit an invoice to revenue recognition. By setting up the hierarchy by company, you can specify which fields are significant for each company and the order in which the system evaluates the values in the fields.
The system uses the sales order header company, not the company in order detail line.
Set up dates by company in the Revenue Recognition Trigger Setup program (P03B420).
The system assigns each invoice in the revenue recognition process an eligible for recognition date. The system calculates this date based on the values you enter during recognition date setup and the trigger configuration.
The system also determines the period comparison date for the invoice based on the values in the date setup. Then, the system compares the eligible for recognition date and the period comparison date and, depending on the value in the Same Period Inclusion check box, sends the invoice to the revenue recognition process.
Set up configuration records by company in the Sales Order Trigger Configuration program (P42032) or the Revenue Recognition Trigger Setup program (P03B420).
The system matches specific data from each transaction against the values in the trigger configuration records to determine whether it is included in the revenue recognition process.
The system also checks the Days From Configured Date field on configuration record to determine how many days to use when calculating the eligible for recognition date.
Note: There are separate trigger configurations for A/R invoices, Sales Order invoices, Contract Billing invoices, and Service Billing invoices.
The system stores revenue recognition trigger setup information for sales order invoices in the following tables:
Sales Order Trigger Hierarchy table (F03B421)
Sales Order Trigger Date table (F03B422)
Sales Order Trigger Configuration table (F03B423)
To review how the system uses the trigger setup to select invoices for revenue recognition, review the revenue recognition trigger process flow: