R12 Revenue Management and Subledger AccountingEd MarwitzEd@eMarwitz.comA Software Companys Case Study

R12 Revenue Management and Subledger AccountingRevenue Recognition requirements to be met.Key setup steps required to manage revenue.Conversion requirement for the existing revenue schedules from the legacy system.Key setup steps in Subledger Accounting (SLA) to map multiple unearned revenue accounts.Revenue ContingenciesRevenue ManagementQuestions?

Revenue Recognition requirements

Background: A software company that has sales in the following areas of recognition concern:Software Maintenance and Support bundled with the software saleTerm Software LicenseImplementation ServicesConsulting ServicesTraining Class and Passport

Key Setup Steps

Accounting RulesKey Item SetupsAccounting Rule AssignmentRevenue Account AssignmentInvoicing Rule AssignmentSLA SetupsStarting from the Beginning or Copy AllMapping Sets: Allows for multiple unearned accounts

Accounting Rule Setup: SMS

Item Master Setups

Conversion Requirements

Leveraged Service Contract conversionLeveraged Auto Invoice Open Interface for the restUtilized Accounting Only Transaction TypesAll periods in the schedule must be opened!Memo Line setups for simplificationStandard GL Journal reversal

Conversion Requirements

Conversion Requirements

SLA Setups: Copy All

Copy Standard Accrual Subledger Accounting MethodCopy Receivables Application Accounting Definition AssignmentCopy Receivables Default Accrual Accounting DefinitionCopy Default Accrual Journal Line DefinitionCreate New Account Derivation Rule for Journal Line Type Invoice Deferred Revenue

SLA Setups: Copy All

Create New Mapping Set: Rule to DeferThis allows us to book a corresponding Deferred Revenue Account for each Revenue AccountSLA looks at the Accounting Rule assigned at the line level and derives the proper Unearned Account in SLA which then ultimately books to the GLAssign Mapping Set to Account Derivation Rule

SLA Setup Screen Shots

SLA Setup Screen Shots

SLA Setup Screen Shots

SLA Setup Screen Shots

SLA setups

SLA setup GotchasAlways copy from the top and do all levels. Dont try to just assign a mapping set to the existing setup.Bad practice to touch existing setupsDoesnt work!Assign an Accounting Chart of Accounts to all levels even though it isnt required.Might not be a yellow field but if you dont populate it doesnt work!

SLA setup GotchasEvery time you touch this setup or add a value to the mapping set it requires re-validation.Concurrent ProgramValidate Application Accounting DefinitionsIf you dont the Submit Accounting process in AR will complete with error. The error message is in the log but its not obvious!Start Dates are important I always back date to the infamous 01-JAN-1951

Revenue Contingencies This was explored to handle the requirement:Training Class purchased.Revenue Recognition occurs when class attendedRevenue Recognition can also occur after 18 months of class purchase regardless of attendanceRevenue Contingency can be setup with an Expiration Date

Revenue Management

Revenue Management

Ed MarwitzEd@eMarwitz.com970.485.2819Questions?