Understanding Cycle Billing
You use the Cycle Billing program (R49700) to calculate scheduled invoice dates. The R49700 program is a batch program that works with the invoice cycle preference and the invoice cycle calculation rule. If no invoice cycle preference is found, the system applies the default invoice cycle identified in the appropriate processing option.
The scheduled invoice date determines whether the system writes deferred journal entries to general ledger accounts. If the scheduled invoice date is more recent than the current date, the invoice is on a billing cycle.
The R49700 program updates deferred general ledger accounts for COGS, revenue, and unbilled accounts receivable. You can run the program in proof mode for review purposes or in final mode to perform the updates.
Deferred entries are necessary because, although you have delivered the order to the customer, the system does not include the order in the sales update until the order has been invoiced on the next billing cycle. The system must update the records to indicate that inventory is no longer in transit, and the accounting records must reflect the deferred billing.
A scheduled invoice date for an order that is before or equal to the current date indicates:
A daily invoice cycle.
No billing cycle.
The current date as the cycle date.
The program does not create deferred entries because the order is included in the sales update that night.
If you set up the system to use taxed prices and you access the Cycle Billing program, the system retrieves the value in the Use Taxed Prices check box on the sales order to determine whether to calculate taxed extended prices.
See Tax Price
(Release 9.2 Update) You can set up the processing options for the Cycle Billing program (R49700) to create separate G/L entries for the base amount, price adjustments, and detached adjustments of a sales order line. The system creates the adjustment entries using DMAAI 4231 (Deferred Revenue) for credit and DMAAI 4232 (Unbilled A/R) for debit based on the G/L offset specified in the adjustment definition. The base amount is calculated by subtracting the adjustment amount from the total extended amount.
The system processes orders differently for cycle billing and non-cycle billing. The following tables provide examples of how the system updates different general ledger accounts for non-cycle and cycle billing. The debit and credit amounts represent sample monetary values for each transaction.