Types of Reclassification Journal Entries
The reclassification process creates up to five adjustment journal entries. The adjustments depend on your system configuration and the state of your revenue workflow when you run the process.
The following list shows the adjustments that your system may create during reclassification, along with links to information specific to the adjustment type. The adjustments are listed in the order the process creates them.
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Carve In/Carve Out Adjustment – for multi-element contracts only
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Foreign Currency Adjustment – for foreign currency transactions that have been billed only
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Unbilled Receivable Adjustment – for revenue recognized in advance of billing
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Foreign Currency Gain or Loss on Contract Asset – for the recognized but unbilled portion of foreign currency transactions. This adjustment is possible only when the accounting preference Exclude Contract Assets from FX Reclassification box is clear.
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Net Contract Asset or Liability per Element – only when the accounting preference Unbilled Receivable Adjustment Journal Grouping is set to sub-arrangement group or arrangement
The Related Records subtab of revenue arrangements includes links to associated reclassification journal entries.