Cost Amortization Plans

Cost amortization plans are contained on the Cost Amortization Plan subtab of the revenue recognition plan. The Cost Amortization Plan subtab shows the costs to be amortized in each period of the plan. It includes a separate line for each type of expense: contract acquisition cost, item resale cost, and labor cost. Thus, you may have up to three lines for each planned period. The information displayed for each line is similar to the Planned Revenue subtab. It includes the following fields:

Planned Period
Planned Expense Type
Amount
Journal
Posting Period
Deferred Expense Account
Expense Account
Date Executed
Is Amortized
% Amortized in Period
% Total Amortized
Total Amortized
Period Comments (actual plans only)

The actual revenue recognition plan header includes two fields related to advanced cost amortization: Remaining Deferred Cost Balance and Total Amortized. The combined values of these two fields equals the total amortized expense on the revenue plans. When the revenue plan is put on hold, the expense amortization is also on hold. You can edit the Planned Period, Amount, Is Amortized, and Period Comments fields. However, you should ensure that your changes are in line with the planned revenue. For more information about editing these fields, see Editing Revenue Recognition Plans.

The revenue recognition journal entries you schedule or create on the Create Revenue Recognition Journal Entries page include lines for the expense amortization. The Revenue Recognition Plans subtab of this page includes the following additional columns:

Allocated Contract Acquisition Cost Amount
Item Resale Cost Amount
Item Labor Cost Amount

The system adds multiple revenue and expense lines on the same plan and in the same period together and displays them as one line. Each of the expense accounts is debited and the deferred expense accounts are each credited in the revenue recognition journal entry. For more information about the journal entry process, see Generating Advanced Revenue Recognition Journal Entries.

To delete a cost amortization plan, you must delete the entire revenue recognition plan. For instructions, see Deleting Revenue Recognition Plans.

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