Creating Profit Recognition Journal Entries for Revenue Performance Obligations

To generate the journal entries for the accounts that are used in the profit recognition process, you must run the Create Journal Entries program (R51444). The system uses the records in the Profit Recognition table (F5144) to determine whether to create journal entries for RPO-level records or for other level records. The system creates the records in the F5144 table at different levels based on the value in the Summarization processing option in the Profit Recognition Build (R51800).

See Creating Profit Recognition Journal Entries.

See Setting Processing Options for Profit Recognition Build (R51800).

When you run the Create Journal Entries program (R51444) for RPOs, the system uses the RPO AAIs to determine the accounts to use for the debit and credit journal entries. You set up RPO AAIs in the Revenue Performance Obligation AAI Criteria program (P5104).

See Setting Up Revenue Performance Obligation AAIs.

When creating journal entries for RPOs, the system uses records from the Revenue Performance Obligation Master table (F5102) and the Revenue Performance Obligation Detail table (F5103).

The system validates the history profit recognition journal entries in the F0911 table before posting in order to include only the incremental change in profit for a given RPO. This is important if you try to change the estimated profits for an RPO when profit has already been recognized.