Revenue Reversal Rules on Credit Memos

If you're crediting a transaction that uses invoicing and revenue scheduling rules, you must select a revenue reversal rule.

The revenue reversal rule determines how to manage the reversal of revenue that was recognized when the credited transaction was created.

There are three revenue reversal rules:

• LIFO (Last In First Out): This rule reverses revenue starting with the most recent accounting period, and then reverses revenue in all prior periods until the credit memo is finished.

• Prorate: This rule reverses revenue by crediting an equal percentage to all account assignments for the transaction.

• Unit: This rule reverses revenue on the number of units that you specify on a transaction line.

  If you select Unit, you must enter a last period to credit, a quantity to credit, and an adjusted unit price on each applicable line. You can't enter a credit quantity that is greater than the quantity on the target transaction line.