Over the summer, TriCore Solutions will be posting a tips about Oracle eBS. Learn about managing revenue contingencies in tip #11.
Thank you to Srini Nakka, TriCore's Senior Practice Manager, for submitting this tip!
Tip #11 - Manage Revenue Contingencies
Oracle Receivables supports revenue contingencies via a robust event-based revenue management process. The even-based model is based on a stringent revenue recognition requirements authorized by US GAAP or International Accounting Standards Board.
In Oracle Receivables Revenue, contingencies are terms and conditions in a sales contract or order that prevent revenue from being immediately recognized.
Here are typical contingencies that can delay revenue recognition:
fiscal funding clauses (for government contracts)
customer acceptance clauses
Nonstandard payment terms
Nonstandard refund policies
Oracle Receivables uses event-based revenue management, to automatically evaluate your invoices and determine whether to immediately recognize revenue, or temporarily defer revenue to an unearned revenue account. Revenue is subsequently recognized depending on certain events, such as customer acceptance or receipt of payment.
Make sure to learn Oracle Tip #10!
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