Advance payment rates for revenue recognition

According to IFRIC 22, when advances are received before goods are delivered, the transaction date of these advances must be considered in foreign currency translation for revenue recognition purposes.

To support this, the Use Advance Payment Rates for Revenue parameter has been added to the Invoicing Parameters (cisli0100m000) session. If this new parameter is enabled, when posting the settlement invoice, recognized revenues are adjusted with the currency rates applicable to the advance payment rates, up to the size of each settled advance amount. These adjustments are available in the Revenue Lines (cirrc1610m000) session with the revenue origin set to Advance Currency Rate Difference.

To track the advance payments and related settlements, these sessions are available:

• Advance Invoice Line Payments (cisli3118m000)
• Advance Invoice Line Payment (cisli3618m000)
• Settled Advance Payment (cisli3122m000)
• Revenue Invoice Line Settled Advance Payments (cirrc1132m000)

This new functionality is applicable only if the Point in Time Revenue Recognition check box is selected in the Implemented Software Components (tccom0100s000) session.