Completing the Guarantee Process

1. Customer commits to guarantee
When the guarantee is initially entered, the following accounting entry is created:
Unbilled Receivables 100 Dr.
                            Unearned Revenue 100 Cr.

2. Invoice of 40 applied to guarantee
These accounting entries are created:
Receivables (Invoice) 40 Dr.
                            Revenue 40 Cr.

Unearned Revenue 40 Dr.
                            Unbilled Receivables 40 Cr.
Net effect is:
Unbilled Receivables 60 Dr.
                           Unearned Revenue 60 Cr.

Receivables (Invoice) 40 Dr.
                           Revenue 40 Cr.

3. Payment of 40 received for invoice
These accounting entries are created:
Cash 40 Dr.
              Receivables (Invoice) 40 Cr.

Net effect is:
Cash 40 Dr.
               Revenue 40 Cr.

Unbilled Receivables 60 Dr.
              Unearned Revenue 60 Cr. 

Oracle Applications Fusion Cloud - Inventory

Oracle Cloud/Fusion Procurement training will help you develop the fundamental skills required to set up and use the Procurement module. This training covers all the tasks, setups, forms and reports used in Procurement and related modules