Contract Liability Accounting

You may want to create and send invoices for products or services that you will deliver in the future or over a period of time. You can use contract liability accounting to generate accounting entries that defer revenue recognition based on a revenue recognition date and method of your choosing.

You can establish date range contract liability calculation method defaults at the system, business unit, or bill type level, according to your business needs. PeopleSoft Billing supports five calculation methods for creating accounting entries for contract liability of transactions when the recognition basis is on a date range:

• Spread by days within range.

• Spread evenly across all periods.

• Spread evenly using a mid-period rule.

• Spread partial periods by days with remainder spread evenly.

• User-defined proration.