Products Managing Revenue

You can recognize revenue associated with a contract either through PeopleSoft Contracts or PeopleSoft Billing. You designate which product manages revenue for each individual contract line. By using PeopleSoft Contracts as the default product to manage contract revenue, you have a higher degree of flexibility and control in managing your revenue. By selecting PeopleSoft Billing as the default product to manage contract revenue, you can speed up contract entry by only entering minimal contract information into the system, and recognizing the revenue through PeopleSoft Billing at the time the bills are finalized. However, when you do this, you lose many revenue management and tracking features that would be available if you were using the default, PeopleSoft Contracts, as the product to manage revenue.

When you define products in PeopleSoft Contracts, you specify the revenue recognition method for that product. The revenue recognition method appears by default to the contract line and may or may not be overwritten depending on system setup. When you select a revenue recognition method of apportionment, milestone, or percent complete, PeopleSoft Contracts manages the flow of revenue. When you select billing manages revenue as the revenue recognition method, PeopleSoft Billing manages the flow of revenue.

This section discusses:

• Accounting entries in PeopleSoft Contracts.

• Accounting entries in PeopleSoft Billing.

• Accounting distributions when PeopleSoft Contracts manages revenue.

• Accounting distributions when PeopleSoft Billing manages revenue.

• Accounting distribution source.