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    Fusion Receivables: Short Term and Long Term Deferred...
    Topic posted September 5, 2019 by brightstarRed Ribbon: 250+ Points, tagged Receivables, Revenue Management 
    28 Views, 1 Comment
    Title:
    Fusion Receivables: Short Term and Long Term Deferred Revenue Accounting
    Summary:
    Fusion Receivables: Short Term and Long Term Deferred Revenue Accounting
    Content:

    Client sells a service contract for 2 years.

    AR need to book their short term (within 12 months) deferred revenue to a specific account 'X', and book their long term deferred revenue in a different account 'Y'. Below Example in Sep-19.

    Service Contract - 2 years = $12000
    Year 1   Year 2  
    Sep-19 500 Sep-20 500
    Oct-19 500 Oct-20 500
    Nov-19 500 Nov-20 500
    Dec-19 500 Dec-20 500
    Jan-20 500 Jan-21 500
    Feb-20 500 Feb-21 500
    Mar-20 500 Mar-21 500
    Apr-20 500 Apr-21 500
    May-20 500 May-21 500
    Jun-20 500 Jun-21 500
    Jul-20 500 Jul-21 500
    Aug-20 500 Aug-21 500
      6000   6000
    Account X   Y

    After a month, Oct-19, 12 months deferred revenue needs to get re-calculated, which means, 

    Oct-19  Deferred Revenue moves into Recognized Revenue

    Sep-20 Deferred Revenue moves from Account 'Y' into Account 'X' as Sep-20 in Oct-19 falls within the 12 month window.

    This should get repeated automatically every month.

    Can any of the member help to achieve this functionality in Oracle Fusion Receivables?

    Version:
    Fusion Receivables 19C

    Comment

     

    • Brian Wolfe

      I am not aware of a way to achieve this in Receivables Cloud, you may wish to consider investigating Revenue Management Cloud or a custom PaaS solution.

      Regards,

      Brian