Tuesday, 15 November 2016

Accounting Rules for AR Invoice

Oracle Allows to create invoices with certain rules, the rules applied to the invoice are classified as

Accounting Rules: Accounting rules determine when to recognize the revenue for the invoice.Each invoice line can have a different accounting rule

Invoice Rules: Invoice rule determines when to bill the customer

Accounting Rules:

  1. Fixed Schedule: Recognize revenues over a specific number of periods. Revenue can be spread evenly or a percentage can be specified for each period
  2. Variable Schedule: Revenue is recognized by percentage for the first period. The remaining revenues is evenly spread across the number of periods the user specified when entering the AR transaction
  3. Daily Revenue Rate
    1. All Periods: Calculates the revenue distributions across all accounting periods including both full and partial periods
    2. Partial Periods: Used to accurately calculate revenue only for partial periods

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