Revenue Recognition (Unbilled G/L) issue.

[former_member211462]

Dear All,

I came across an issue recently related with revenue recognition. In this business process of OTC this is how it goes:

Creation of Contract => Creation of Invoice => Creation of Invoice list => month end VF44 is run.

Normally after creation of invoice and forwarded to accounting the flow is like this

Customer Dr => Deferred revenue account Cr.( D/R account)

After we run VF44 from D/R account this flows to revenue account.

Now the issue is recently business found out that instead of the Deferred revenue account Cr.( D/R account) its flows to Unbilled receivables account.

But this G/L account is not mapped in VKOA but still after invoice instead of the D/R account is goes to another G/L account(Unbilled G/L)

Customer Dr => unbilled receivables account Cr

Is this the right way ?

Thanks and Regards

JAGAN N M

[ravi_kumar100]

Hi,

Recheck your VKOA with the Customer /Material account assignment group derived in the invoice.

Recheck the Revenue account determination analysis of the corresponding invoice,you may get a clue.

You can recheck the configuration for any alternate reconcillation account determination.

Regards,

SRK

[former_member211462]

Hi SR Kumar,

Thanks for valuable your reply,

In the VKOA settings and reconciliation account determination everything looks fine.

In the RR process after billing the value gets Cr. in the Deferred revenue account Cr.( D/R account) as configured in VKOA.

But in certain cases after Billing the Deferred revenue account ( D/R account) does not get Cr. instead

the unbilled G/L account gets Cr.

That's my question, how come that action takes place?

Thanks and Regards

JAGAN N M

[ravi_kumar100]

Hi,

Kindly check the path mentioned in the below screen for any values maintained:

Regards,

SRK

[former_member211462]

Dear SR Kumar,

All the settings are correct in "Maintain Account Determination"

This case does not happen in all invoice, it only happens in some particular invoices only.

Thanks and Reards

JNM

[ravi_kumar100]

Hi,

For those particular invoices ,kindly check the Billing Type setting in "VOFA" whether any Account Determination procedure has been maintained or not?

Regards,

SRK

[former_member211462]

Dear SR Kumar

The above config. is fine. But as the billing is created by a Job there could be some issue with that part.

If you can see the above image the contract with a particular item is blocked for billing and after invoice is created for that item the account entries are correct

But for the second one its the same contract with the another item showing " date 000002 has already been billed (billing plan)" after creating the invoice or this the wrong account entries are posted.

I feel its an offsetting entry since already billing is carried out for that period.

Can you please put some light on this.?

Thanks and Regards

JNM