Adjust Revenue Transactions

Review and adjust revenue transactions directly from the revenue work area or from an expenditure item in Oracle Fusion Project Costing. Methods for adjusting revenue include:

• Place a transaction on revenue hold

• Change the billable status of a transaction

• Retroactively amend a contract that impacts revenue recognition

• Adjust an invoice (for as-billed revenue)

Place a Transaction on Revenue Hold

Hold revenue indefinitely for a transaction to prevent revenue recognition. The hold status for the transaction is updated, and if the transaction was previously recognized for revenue, the revenue status becomes Adjustment Pending. Oracle Fusion Project Billing will not recognize revenue during revenue generation until you remove the hold.

The next time you generate revenue after placing a revenue transaction on hold, Oracle Fusion Project Billing creates a reversing revenue distribution with the same attributes as the original distribution, and a value equal to the negative amount of the original distribution. Once the revenue for a transaction is reversed, the revenue status changes to Unrecognized.

Change the Billable Status of an Expenditure Item

Set an expenditure item to nonbillable status to prevent revenue recognition. The expenditure item is excluded from revenue recognition until you change the status to billable. If revenue was already recognized for the expenditure item, the revenue status becomes Adjustment Pending.

The next time you generate revenue after setting an expenditure item to nonbillable, Oracle Fusion Project Billing creates a reversing revenue distribution with the same attributes as the original distribution, and a value equal to the negative amount of the original distribution. The value of the reversing expenditure item is equal to the negative amount of the original expenditure item. Once the revenue for the expenditure item is reversed, the revenue status changes to Unrecognized.

Retroactively Amend a Contract that Impacts Revenue Recognition

Placing a contract under amendment permits you to make changes to a contract that have an impact on existing revenue amounts. If you make a change to a contract that impacts revenue, and the amendment is approved and accepted, the revenue status of processed transactions with a transaction date on or after the amendment effective date changes to Adjustment Pending. The transactions with pending adjustments are processed the next time you generate revenue for the contract.

Adjust an Invoice

As-billed revenue is automatically adjusted when you adjust an invoice that changes the invoice amount. If you adjust an invoice that changes the invoice amount, and as-billed revenue was already recognized, the revenue status of the adjusted expenditure items changes to Adjustment Pending. These expenditure items are processed the next time you generate revenue for the contract.