Infidox Technologies || Revenue Recognition

    

Revenue Recognition

 

 

In oracle receivable Run the Revenue Recognition program to generate the revenue distribution records for your invoices and credit memos that use Invoicing and Accounting Rules. You assign accounting rules to recognize revenue over several accounting periods. The Revenue Recognition program will create distribution records for the invoices and credit memos that you create in Receivables. Then run the create accounting program, it will post the revenue-related journal entries to GL.

 

Accounting rule types

Accounting rules helps to Create Revenue Recognition Schedules for your invoices. Accounting rules determine the number of periods and percentage of total revenue to be recorded in each Accounting period. You can use accounting rules with transactions that you import into Receivables using Auto Invoice and with invoices that you create manually in the Transaction windows. You can define an unlimited number of accounting rules.

 

¡  Fixed Schedule

¡  Variable

¡  Daily Revenue Rate, All Periods

¡  Daily Revenue Rate, Partial Periods  

 

Invoicing Rules

Invoicing rules determine the accounting period in which the receivable amount is recorded. You can either manually assign invoicing rule to transactions you create or import these rules into receivables using the Auto Invoice utility.

Types:

¡  Bill in Arrear

¡  Bill in Advance

 

 

 

 

 

Infidox Technologies ||Year End Closing Activities Checklist

 

||Year End Closing Activities Checklist||

The following procedures are typical of most year-end activities:

To complete the year end process:

1.    Run revaluation (if you manage financial information in multiple currencies).

2.    Stop processing accounting transactions for the old year.

3.    Produce preliminary year end reports.

Produce the usual period-end reports and any other special year end reports.

4.    Begin to process the new year.

As you do at other times of the year, you can use the Open Period Update page or Open Periods Mass Update page to open the first accounting period in the new year for entry and posting.

5.    Record adjustments to the old year.

When you are ready to post adjusting entries to the old year:

·         Enter them as adjusting journals.

·         Alternatively, reopen the appropriate accounting period, enter and post the entries, and close the period again.

6.    Close the old year.

To close revenue and expense accounts to retained earnings and roll forward beginning balances to the New Year, use the Close Request page to initiate the background request. General Ledger performs closing according to the options selected in the closing rules.

7.    Produce reports for the New Year.

Until you run year end closing, reports for the next year do not include any results from prior years. Once you run the close process, balance sheet accounts and inception-to-date revenue and expense accounts are available for reporting.

8.    Make additional adjustments to the old year.

When you must make additional adjustments for the old year, follow the same process that you use to record adjustments to the old year.

9.    Reclose the old year.

Whenever you make adjustments to a closed year, you must run year end closing again to ensure that the opening balances for the New Year reflect all activity for prior years.

Infidox Technologies || General Ledger Journal Approval Process

 General Ledger Journal Approval Process

Pre-Requisites:
    Enable Journal Approval’ checkbox should be checked in Ledger setup

    Require Journal Approval’ checkbox should be checked at journal source level    

Profile Options:

• Set profile option “GL: Use Apprvoval Management (AME) for journal approval”  to No or Blank

• Set the profile option “Journals: Find Approver Method” to any of the below values:-

                 Go up the Management Chain

                 Go Direct

                 One Stop then Go Direct

If you’re using Journal Approval via AME then

•          Set profile option “GL: Use Approval Management (AME) for journal approval”  to “YES”

•          Set Appropriate AME Rules depending upon Business requirement.

Hierarchy of Managers:

Name: NeymarJr

Assignment : Lionel Messi

Name: Lionel Messi

Assignment: Cristiano Ronaldo

Name: Cristiano Ronaldo

Assignment: Pele

Name: Pele

Assignment: None

Ensure that the UserID has person assigned:

§ Pele is assigned to Pele

§ CrisRonaldo is assigned to Ronaldo, Cristiano

§ LIOMESSI is assigned to Messi, Lionel

§ Neymar is assigned to Junior, Neymar (As shown below)

Set Journal Authorization Limits

Note: Currency using in approval limits should always be used in functional currency

There are three types of Profile Option “Journals: Find Approver Method” for Journal Approvals:

Go up the Management Chain

Go Direct

One Stop then Go Direct

Set the profile option “Journals: Find Approver Method” to “Go up the Management

Chain”

           

             

Profile Option “Go up the Management Chain” means if NeymarJr raises a journal of 10,000 then it will go near Lionel Messi for approval and then NeymarJr can post the journal. If NeymarJr raises journal of 20,000 then 1st it goes near Lionel Messi for approval, if Lionel Messi approves then it goes near Cristiano Ronaldo for approval. Once Cristiano Ronaldo approves the journal then only NeymarJr can post them.

Set the profile option “Journals: Find Approver Method” to “Go Direct”

      

Profile Option “Go Direct” means it will directly go to the approval as per the approval limit. If NeymarJr raises a journal of 22,000 then it will directly go near Cristiano Ronaldo for approval, it will not go near Lionel Messi.

Once Cristiano Ronaldo approves the journal then only NeymarJr can post them.  

Set the profile option “Journals: Find Approver Method” to “One Stop then Go Direct”

       

Profile Option “One Stop then Go Direct” means it will stop near 1st approver then direct to the final approver. If NeymarJr is submitting a journal of 30,000, it will 1st go  near Lionel Messi(One Stop) then directly near Pele(then Go Direct), it will not go near CrisRonaldo for approval.

Once Pele approves the journal then only NeymarJr can post them.

Content Writer: Araf Shaikh