Revenue Process

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When you generate revenue, Oracle Projects first selects projects, tasks, and their associated  events and expenditure items that are eligible for revenue generation. Oracle Projects next  alculates the potential revenue and then creates revenue events and expenditure items.
 

During the revenue generation process, revenue and billing amounts are calculated in the billing transaction currency. Revenue is processed using a common currency, called the revenue processing currency, which is always the project functional currency. Revenue amounts in
the billing transaction currency are converted to project functional currency, project currency, and funding currency during the revenue generation process.

Revenue recognition, funds checking, and unbilled receivables/unearned revenue (UBR/UER), are processed and posted to General Ledger in the revenue processing currency. For reporting purposes, funding balances are maintained in the project functional currency, the project currency, and the funding currency.

Revenue Calculation
Oracle Projects next calculates the total potential revenue that can be accrued for each project. Potential revenue is the full revenue amount that could be accrued if enough funding is available. Projects that use task level funding calculate the potential revenue for each task, while projects that are funded at the project level have a single potential revenue amount for the project.

Oracle Projects calculates the bill amounts for all expenditure items when calculating revenue, except for cost and event billing projects, which do not bill expenditure items.

Cost–to–Cost (Percent Spent)
For projects using cost–to–cost revenue accrual method, Oracle Projects uses the following formula to calculate revenue (in the project functional currency) to accrue for the revenue generation run



As–Work–Occurs (Time and Materials)
For projects that use as–work–occurs (or time and materials) revenue accrual, the total potential revenue is simply the sum of the revenue of all expenditure items plus events.

After all of the bill rates are assigned, Oracle Projects rejects those items for which no bill rate or markup is found, and creates distribution warnings.Oracle Projects also calculates the bill amounts for each item for projects which accrue cost–to–cost revenue based on percent complete but bill on
a time and material basis

Revenue Events
• You can process revenue for detail transactions using one of the revenue accrual methods.
• You can also process revenue and invoice amounts using events.
– Events are revenue and/or billing transactions assigned to a project or top task that are not
directly associated with detail transactions.
– Event types are defined by the user to categorize different kinds of standard and nonstandard event
transactions by revenue category

Percent Complete

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