Revenue Recognition for Deferred Revenue
We are using lease out process in REFX module to manage lease related contracts. I am facing an issue with RERAALCN output. I would elaborate my requirement with an example. We have a lease contract for lease rental is booked in REFX in advance for 3 years and all revenue is credited to a deferred revenue account. Now from the amount posted to this deferred revenue amount we want to recognize revenue every month using Accruals/Deferrals feature in REFX. I have set up customizing as per OSS 829676 , relevant flow types have been assigned accruals/deferral types. When i am running first posting system is picking exactly same which it should for the first month revenue recognition but when RERAALCN is executed in second month system reversed the entry posted in previous month and do not recognize anything from that month.. I do not want entry to be reversed , i need monthly amortization of deferred revenue posted earlier. Accrual type which is called is ANRVCN. Furthermore in second month system wants to post an inception entry with type TRRVCN which i do not need, i know it can be avoided by setting up only periodic posting for this accrual type but this setting would deviate from the what the settings have been described in OSS note. Please guide me how to accomplish the task. I am attaching screen shot of what is actually going wrong.