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Recognition Processing

Modules > Advanced revenue & expense deferrals > Periodic tasks > Recognition processing

Modules > Advanced revenue & expense deferrals > Deferral schedules > All deferral schedules > [select a deferral schedule] > [select a schedule line] > [select Recognize or Reverse]

Modules > Advanced revenue & expense deferrals > Deferral schedules > Active deferral schedules > [select a deferral schedule] > [select a schedule line] > [select Recognize or Reverse]

Use this page to process the recognition or reverse the recognition of deferral lines.

To set up a recurring batch job process, use the Recognition Batch Processing page.

Short-Term Recognition Amounts

Recognition amounts come from short-term or long-term accounts:

  • If the short-term balance is greater than zero, the recognition amount is from the short-term account and short-term balance for the deferral schedule is updated.
  • If the short-term balance is zero, the he recognition amount is from the long-term account.

Short-term adjustments

When an initial transaction is posted or when deferral schedule lines are recognized or reversed, a short-term adjustment entry is also created. The adjustment amount is calculated as follows: 

new short-term amount - current deferral schedule short-term amount

  • If the adjustment amount is zero, no adjustment entry is created.
  • If the short-term and long-term accounts are the same, no adjustment entry is created. However, the short-term schedule amount is updated on the deferral schedule.
  • In each short-term adjustment entry, one of the short-term account or the long-term account is debited, and the other account is credited.

    • The credit and debit for the accounts is determined by whether the adjustment is positive or negative and the recognition type of the deferral schedule. ClosedView example.

    For example, when the short-term adjustment is +50 and the deferral schedule has a recognition type of Credit, the long-term account is debited and the short-term account is credited.

    These journal entries are posted on the same batch as recognition entries, or they are posted on separate batches where one journal entry is for the initial posting. They also have the same transaction date as the recognition or reversal entry or the initial transaction. The recognition or reversal entries are summarized based on the setting of the Summarize recognition journal option. The initial transaction is summarized based on the setting on the Advanced Revenue & Expense Deferrals Parameters page.

    The short-term adjustment entries are summarized independent from the recognition entries.

For more information about calculation, see Short-Term Deferral Calculation.

Recognize Revenue

To recognize revenue for a deferral schedule: 

  1. From the Schedules page in the Lines grid, select the lines you want to recognize, and select Recognize.
  2. On the Recognition Processing page, set Recognition action to Create recognition journal and select the Cutoff date.

    3. The Cutoff date is the date until which to include lines. Only the lines that have an end date earlier or the same as the Cutoff date are included in the processing.

  3. Choose Select and add data filters so that only the range of records that you want appears in the list.
  4. From the lines list, select the lines that you do not want to process, and select Remove.
  5. The journal Name and Description are automatically updated with the default values. If needed change the values.
    You can select whether to summarize the recognition journal entry.
  6. For the Transaction date section, select whether to override the transaction date with a specific date to process the transaction. And you can specify the transaction date for closed periods.
  7. To process as part of a batch, select Batch, which opens the Batch processing page.
    Complete the parameters for the batch and select OK to return back to the Recognition Processing page.
    The revenue recognition is processed at a later time when the batch is processed.
  8. Select OK.
    If you did not add this transaction to a batch, all lines are processed immediately. Otherwise, the lines are processed when the batch is processed.

Reverse the Recognition of Revenue

Reverse recognition transactions for a deferral schedule:

  1. From the Schedules page in the Lines grid, select the lines you want to recognize, and select Reverse.
  2. On the Recognition Processing page, set Recognition action to Reverse recognition journal and select the Cutoff date.

    3. The Cutoff date is the date until which to include lines. Only the lines that have an end date earlier or the same as the Cutoff date are included in the processing.

  3. Choose Select and add data filters so that only the range of records that you want appears in the list.
  4. From the lines list, select the lines that you do not want to process, and select Remove.
  5. The journal Name and Description are automatically updated with the default values. If needed change the values.
    You can select whether to summarize the recognition journal entry.
  6. For the Transaction date section, select whether to override the transaction date with a specific date to process the transaction. And you can specify the transaction date for closed periods.
  7. To process as part of a batch, select Batch, which opens the Batch processing page.
    Complete the parameters for the batch and select OK to return back to the Recognition Processing page.
    The revenue recognition is processed at a later time when the batch is processed.
  8. Select OK.
    If you did not add this transaction to a batch, all lines are processed immediately. Otherwise, the lines are processed when the batch is processed.

Stub Transactions

Stub transactions for a deferral schedule:

  1. From the Schedules page in the Lines grid, select the lines you want to recognize, and select Recognize.
  2. On the Recognition Processing page, set Recognition action to Stub and select the Cutoff date.

    3. The Cutoff date is the date until which to include lines. Only the lines that have an end date earlier or the same as the Cutoff date are included in the processing.

  3. Choose Select and add data filters so that only the range of records that you want appears in the list.
  4. From the lines list, select the lines that you do not want to process, and select Remove.
  5. The boxes under the Journal section are not available for the stub process.
    You can select whether to summarize the recognition journal entry.
  6. For the Transaction date section, select whether to override the transaction date with a specific date to process the transaction. And you can specify the transaction date for closed periods.
  7. To process as part of a batch, select Batch, which opens the Batch processing page.
    Complete the parameters for the batch and select OK to return back to the Recognition Processing page.
    The revenue recognition is processed at a later time when the batch is processed.
  8. Select OK.
    If you did not add this transaction to a batch, all lines are processed immediately. Otherwise, the lines are processed when the batch is processed.

Reverse Stub Transactions

Reverse stub for a deferral schedule:

  1. From the Schedules page in the Lines grid, select the lines you want to recognize, and select Recognize.
  2. On the Recognition Processing page, set Recognition action to Reverse stub and select the Cutoff date.

    3. The Cutoff date is the date until which to include lines. Only the lines that have an end date earlier or the same as the Cutoff date are included in the processing.

  3. Choose Select and add data filters so that only the range of records that you want appears in the list.
  4. From the lines list, select the lines that you do not want to process, and select Remove.
  5. The boxes under the Journal section are not available for the stub process.
    You can select whether to summarize the recognition journal entry.
  6. For the Transaction date section, select whether to override the transaction date with a specific date to process the transaction. And you can specify the transaction date for closed periods.
  7. To process as part of a batch, select Batch, which opens the Batch processing page.
    Complete the parameters for the batch and select OK to return back to the Recognition Processing page.
    The revenue recognition is processed at a later time when the batch is processed.
  8. Select OK.
    If you did not add this transaction to a batch, all lines are processed immediately. Otherwise, the lines are processed when the batch is processed.

Fields

This page contains the following fields: 

Field Description
Recognition
Recognition action

Select the action for processing the records:

  • Create recognition journal: Creates a journal voucher to recognize the amount of a deferral schedule line and marks the deferral schedule line as recognized.
  • Reverse recognition journal: Reverses a previously created journal voucher and clears Recognized check box for the deferral schedule line.

    • If the recognition account has changed since the line has been recognized, the balance is taken from the original recognition account. If the deferral account has changed using reclassification since the line has been recognized, the balance is added to the new deferral account.

  • Stub: Stubs the deferral schedule line. Stubbed lines cannot be recognized. Use this action when a recognition entry was manually created, which prevents duplicate entries.
  • Reverse stub: Removes the stub from a deferral schedule line.
Cut off date Select the date on which to include records. When you select records, only the lines with an end date earlier than or equal to this date are included.
Journal
Name

Select the journal name.

The New voucher setting for this journal name must be In connection with balance.
Description

Specify a description of the journal that is created.

Summarize recognition journal

Indicates whether recognition vouchers are consolidated: 

  • :  Recognition vouchers are consolidated.
  • : Recognition vouchers are not consolidated.

The default value is from the page.
Transaction Date
Override transaction date

Indicates whether the transaction date is to be overridden with the transaction date specified on this form: 

  • : The transaction date can be overridden for all lines with the transaction date specified on this form.
  • : The transaction date cannot be overridden for all lines.

By default, the date used on the journal voucher is the end date of the deferral schedule line.

Transaction date

Specify the date on which the recognition voucher is posted for all deferral scheduled lines. Available when is .

Note icon. Note: After this date is set, the transaction dates on individual deferral schedules can still be changed. This date must be within an open fiscal period.

Transaction date for closed periods

Specify the transaction date for deferral schedule lines that are not in an open or valid period. This date must be within an open fiscal period.

Available when is .

Lines
Line Displays the line sequence number.
Schedule number Displays the deferral schedule number.
Deferral start date Displays the deferral start date.
Deferral end date Displays the deferral end date.
Expiration date Displays the expiration date of the deferral.
Amount Displays the deferral amount.
Recognized Displays whether the line has been recognized. A check mark indicates that the line has been stubbed.
Stubbed Displays whether the line has been stubbed. A check mark indicates that the line has been stubbed.
Transaction date Select the date on which the recognition voucher is posted. This date must be within an open fiscal period.
Totals
Recognition amount

Displays a sum total of the recognition amount for all lines.

Expiration amount Displays a sum total of the expiration amount for all lines.
Total amount Displays a sum total amount for all lines.

Buttons

This page contains the following buttons: 

Button Description
Select Opens a query window, where you can add user-defined parameters to the query. When you select OK, the query is applied to the data, and the lines are updated.
Remove Removes the selected rows from the list.
OK Processes all the records shown, and closes the page.
Cancel Closes the page without processing the records.
Batch Opens the Batch Processing page, where you set the batch processing options.