Setting Up Unbilled Revenue Accrual Defaults

Define the Contract Asset Distribution Code (or offset account) on the Distribution Code page and Bill Type 3 page. This value is not stored on the bill, but the Contract Asset process needs this distribution code to run successfully. The Contract Asset Distribution Code field default hierarchy is:

  1. Distribution Code page.

  2. Bill Type 3 page.

  3. Billing Definition - Business Unit 3 page (where the field is required).

Setting Up Unbilled Revenue Accrual Defaults on the Distribution Code Page

If you have several AR accounts and you want to use a separate contract asset account for each (in effect, pairing each AR account with its own contract asset account), use the Distribution Code page to define these relationships.

To define pairs of AR accounts and contract asset accounts:

  1. Select AR as the distribution code search parameter, and match each of the AR distribution codes to its own contract asset distribution code.

    The distribution type of AR denotes an AR type of account distribution.

  2. In the Contract Asset Distribution Code field, enter the distribution code for the unbilled ChartField values that you establish during the initial setup for the contract asset process.

    If you do not want to pair each AR account with its own contract asset account, leave this field blank, and define the Contract Asset Distribution Code on the Bill Type 3 page.

Setting Up Unbilled Revenue Accrual Defaults on the Bill Type 3 Page

To set up the Contract Asset process at the bill type level:

  1. Select Accrue Bills of This Level to enable unbilled revenue accrual of bills at the bill type level.

  2. Enter an contract asset distribution code to use different contract asset distribution codes for different bill types.

    If you define an contract asset distribution code on the Distribution Code page, the system uses that value. If you leave that field blank, the system uses the contract asset distribution code that you establish here at the bill type level. If you do not establish an contract asset distribution code here, the system uses the one that you establish at the business unit level where it is required.

Setting Up Unbilled Revenue Accrual Defaults on the Standard Billing - Header - Info 2 Page

Use this page to accrue unbilled revenue for individual invoices. If you selected the Accrue Bills at This Level field at the bill type or the business unit levels, that information appears by default on this page, and the Accrue Unbilled option is selected. If not, select it here. For this bill to be eligible for accrual, this flag must be selected.