Accounting Distribution Source

When the system prepares billing activity for the PeopleSoft Billing Interface tables, the process needs to know what distribution entries need to be created for each bill line. In the case of fixed-amount billing, the source of accounting information depends on the product (PeopleSoft Contracts or PeopleSoft Billing) that is managing revenue for the bill line. In the case of rate-based billing, the source of accounting information is always the same because PeopleSoft Contracts always manages the revenue. In the case of recurring billing, the source of accounting information is always the same because PeopleSoft Billing always manages the revenue.

This table lists accounting scenarios:

Source of Accounting Entries	Scenario #1: Contract Liability (revenue managed from Contracts)	Scenario #2: Contract Asset Without Contract Liability (revenue managed from Contracts)	Scenario #3: Contract Asset Without Contract Liability (revenue managed from Billing) Amount-based contract lines	Scenario #4: Contract Liability (revenue managed from Billing) Recurring contract lines
Entries created by contract liability process in PeopleSoft Contracts.	DB Contract Asset CR Contract Liability	None	None	None
Entries created by revenue management in PeopleSoft Contracts.	DB Contract Liability CR Revenue	DB Contract Asset CR Revenue	None	None
Entries created by PeopleSoft Billing upon the generation of the invoice.	DB Billed AR CR Contract Asset	DB Billed AR CR Contract Asset	DB Billed AR CR Revenue	DB Billed AR CR Contract Liability DB Contract Liability CR Revenue

Note:

It is recommended that you do not use PeopleSoft Billing for deferred contract revenue except in the case of recurring contract lines. For recurring contract lines, PeopleSoft Billing manages revenue and handles all contract liability processing. The information sent to PeopleSoft Billing for rate-based contract lines is always the same.

When PeopleSoft Contracts Manages Revenue

Fixed-amount billing methods derive the contract asset account from the CA_DETAIL_UAR table. In addition, as-incurred contract lines with the value-based billing method derive the contract asset account from the CA_DETAIL_UAR table. Although the contract asset distribution for each contract line is stored in this table, it may appear by default from the product group and/or the PeopleSoft Contracts business unit associated with the contract. This enables you to maintain contract asset accounting distribution data consistently for a particular PeopleSoft Contracts business unit or populate it by default consistently from the product group associated with the products. You may override the contract asset accounting distribution information on the Accounting Distribution page for each contract line.

Note:

As-incurred contract lines not using the value-based billing method derive their contract asset distribution from accounting rules on the As-Incurred Accounting Distribution page.

When PeopleSoft Billing Manages Revenue

Only the fixed-amount billing methods (Milestone, % Complete, and Immediate) and the recurring billing method may be associated with contract lines that allow PeopleSoft Billing to manage revenue. The revenue distribution in these cases is stored in CA_DETAIL_DST. Each contract line has one or more accounting distribution lines associated with it. You can set up this information for each product in the product table by using distribution codes and distribution sets. The distribution for the product appears by default in the CA_DETAIL_DST table when you select the product onto a contract line. You can then override part or all of the revenue accounting distribution manually.

Contract Liability When PeopleSoft Billing Manages Revenue

The Billing Interface allows interfacing systems to define bill lines in a manner that qualifies them for contract liability processing within PeopleSoft Billing. The contract liability flag on the contract line defines whether or not contract liability processing is active in the Billing Load to GL process. If the option is inactive, this processing does not occur. This does not affect the Contracts Billing Interface process. If this option is active, it enables you to use the contract liability functionality in PeopleSoft Billing. Note that this contract liability isn't reflected in the PeopleSoft Contracts revenue management pages.

Note:

When PeopleSoft Contracts manages revenue recognition, the revenue recognition basis is passed to the billing interface as INV (INTFC_BI.REV_RECOG basis = 'INV' Invoice date)—excluding these lines from deferred processing in PeopleSoft Billing.

Note:

When PeopleSoft Billing manages revenue for recurring contract lines with contract liability, PeopleSoft Contracts sends the revenue recognition basis to the billing interface and populates the CHARGE_FROM_DT and CHARGE_TO_DATES.