Contract Clearing Account

You can integrate Oracle Revenue Management with many different billing systems. To accommodate this integration, Revenue Management provides the Contract Clearing account.

You use this account to credit your invoices. Revenue Management receives data indicating that an invoice has been issued. The application then credits the asset account and debits the clearing account.

The balance should always be zero. If an entity issues an invoice that doesn't meet the criteria for a receivable in ASC 606-10-45-4 and IFRS 15-108, it's impossible to match that invoice to an asset because none exists.

In this case, transfer the invoice to a contra receivables account, offsetting the receivables. The clearing account should always be zero once all the processes complete.