Overview of Invoicing Rule
Invoicing Rule:Determine the accounting period or periods in which the revenue distributions for an invoice line are recorded.
1)In Advance:Use this rule to recognize your receivables immediately.
2)In Arrears:Use this rule if you want to record the receivable at the end of the revenue recognition schedule.
Recognizing Revenue:
Revenue is recognized according to the revenue scheduling rule assigned to the invoice line.
Watch video session here- What is Invoicing rule and revenue scheduling in Oracle Fusion
Invoice Rule In Advance
1) In Advance
Choose Receivable << billing.
From task panel<<Create Transaction.
For Oracle Fusion instance access check here
Fill required field then press on revenue scheduling.
Choose revenue scheduling from rule option
Then press complete and review then save and close.
You will get a confirmation message Then go to Revenue to recognize revenue before posting to ledger.
From task panel<<Recognize Revenue
Choose business unit and other required field then submit
You will get a confirmation number go to check it in schedule process.
From navigator<<tools<<schedule process
Then go back to receivable<<billing search by transaction number to find invoice to post it to ledger
Revenue: is recognized in the first month _ Unearned revenue: it is a liability on a company until goods or
services provided to customer.
Invoicing Rule-In Arrears
2) In Arrears.
Choose Receivable << billing.
From task panel<<Create Transaction
Fill required field then press on revenue scheduling, choose invoicing rule In Arrears
Choose revenue scheduling from rule option
Then save, press on complete and review
Then go to Revenue to recognize revenue before posting to ledger
From task panel<<Recognize Revenue
You will get a confirmation number go to check it in schedule process
From navigator<<tools<<schedule process
Then go back to receivable<<billing search by transaction number to find the invoice to post it to ledger
Revenue: is recognized in the last month. Unbilled Receivable:refers to revenue that has been recognized
but not yet billed to the customer, It consider an asset that will convert into cash or A/R in last period of invoice.
