Revenue Document Lines and Revenue Lines

This topic describes the implementation and usage of the Revenue Document Lines and Revenue Lines.

  • Create Revenue Document Line: A revenue document line must be created from the existing LN package. The revenue document must be created from the following business objects:
    • Sales Order
    • Sales Schedule
    • Service Order
    • Maintenance Sales Order
    • Contract Deliverable
    • The Revenue Recognition module populates the business object data and if required original business object data, based on the original document identification (and the backorder/original document data). In case the value of Document Business Object in Business Objects is cleared, LN considers the status as selected.
    • Also the Revenue Recognition module retrieves the revenue recognition method. This is used to set values for automatic approval (if Use Approval is selected in the Revenue Recognition Parameters (cirrc0100m000) session), revenue recognition date based on (basis date + delay), and revenue recognition level. LN also checks if a contract is required. If yes, the revenue document line is linked to an existing contract if possible, otherwise a new contract is generated. The order series of the revenue recognition method is used for this, if this is empty the order series of the parameters is used. The revenue recognition method contract fields must match the selected contract fields.
  • Update Revenue Document Line: A revenue document line must be updated from the existing LN package, in case one of the fields that are used when creating the revenue lines are modified.
  • Delete Revenue Document Line: A revenue document line must be deleted in the following situations:
    • the sales order line (or other document line) is deleted and no deliveries are to be processed (so not when the sales order line is deleted after it is fully processed).
  • Cancel Revenue Document Line: A revenue document line must be canceled from existing LN package, in case the sales order line (or other document line) is canceled. You cannot cancel the revenue document, if deliveries are already done.
  • Update Revenue Document Line: Revenue document lines can be manually updated. The fields generated from the revenue recognition method can be changed (like revenue recognition date based on). Furthermore, if contracts are applicable, the revenue document line can be linked to another contract, linked to a new contract, or unlinked from a contract, if the Revenue Document Line Status in the contract is set to Open. If changes are made and approved revenue lines are already present, the revenue lines must be approved again. The revenue document line can be automatically set to Invoicing Finished if no changes (more deliveries, more invoices) are required. It can be set to Recognition Finished if all revenue lines have status recognized
  • Delete Revenue Document Line: Only revenue document lines with Revenue Document Line Status set to Canceled or Closed can be deleted with the Remove Revenue Document Lines (cirrc1210m200) session (for revenue document lines that are not linked to a revenue contract) or with the Remove Revenue Contracts (cirrc1200m200) session (for revenue document lines that are linked to a revenue contract).
  • Archiving: Archiving is based on the history tables. Archiving (and deleting) of history tables can be done with the Archive/Delete Revenue Document Line History (cirrc1260m000) session. Note: If the Log History check box is cleared, while closing the contract/revenue document line you can create a history record, in that case only one history record is present for each original record.
  • Status: You must define the Revenue Document Line Status in the Revenue Document Lines (cirrc1110m000) session. Also, the Revenue Document Line is automatically defined for the Recognition Finished, Invoicing Finished, Performance Obligation Finished and Delivery Started values.

Revenue Document Lines

Revenue Lines

This topic describes in detail, the user actions allowed for the Revenue Lines within the Revenue Recognition module in LN.

Revenue Lines

  • Revenue Origin: A revenue line can have different origins. You must define the Revenue Recognition Revenue Origin in the Revenue Line (cirrc1620m000) session.
  • Create Initial Revenue Line: A revenue document line must be created from the existing LN package. The revenue document must be created in the following situations:
    • Sales Orders
      • When a delivery is done.
      • In case of customer approval: when an approval is done.
      • In case of consumptions: when a consumption is done.
    • Sales Schedules
      • When a delivery is done.
      • In case of consumptions: when a consumption is done.
    • Service Orders
      • When actual quantity is specified on the revenue document line (in case of material this means a delivery is done).
      • When completion date is specified on the revenue document line and actual quantity is already present.
    • Maintenance Sales Orders
      • When an actual coverage line is created and the actual delivery date/actual receipt date is specified on the order line.
    • Contract Deliverables
      • When a delivery is done.
  • Create or Update Revenue Line:
    • Update Delivery Date, Quantity, Quantity Unit, Revenue Amount, Order Discount Amount
      • This is only possible for Service Orders and Maintenance Sales Orders.
    • Change Price/Discount after Delivery
      • The price and discounts can be changed after delivery for sales orders, sales schedules, service order and maintenance sales orders.
    • Change Cost of Sales after Delivery
      • In case of direct delivery, it is possible the Cost of Sales change after delivery, for instance when a purchase price variance comes up.
  • Create Revenue Line (from Invoicing): Invoicing can create only revenue lines with revenue origin Invoice Currency Rates Differences (this must be done when revenue line is already recognized during updating the invoice data, and rates are different and rate determiner is linked with invoice data) or Advance Payment Currency Rates Differences (this must be done when the revenues must be recognized against the rates used for the cash payment)
  • Create Revenue Line (from Revenue Recognition module):
    • Manual Lines
      • It is possible to create revenue lines manually if the revenue document line has status open and Invoicing is not Finished. Using this option, it is even possible to recognize revenues before delivery.
    • Balancing Revenue Document Line
      • If the revenue document line is not balanced, the lines which are invoiced must be recognized also. With the Balance Revenue Document Lines (cirrc1210m000) session, you must create revenue lines with the Revenue Recognition Revenue Origin set to Balancing Revenue Document Line, that makes these amounts/Cost of Sales equal, based on business object balance reference level or link between business objects. For example, if the invoiced revenue amount is 100 and the recognized revenue amount is 80, the revenue amount on the new revenue line is 20.
  • Update Revenue Line: Revenue lines can be manually updated from the Revenue Recognition module.
  • Delete Revenue Line: Only revenue document lines with Revenue Document Line Status set to Canceled or Closed can be deleted with the Remove Revenue Document Lines (cirrc1210m200) session (for revenue document lines that are not linked to a revenue contract) or with the Remove Revenue Contracts (cirrc1200m200) session (for revenue document lines that are linked to a revenue contract).
  • Archiving: Archiving is based on the history tables. Archiving (and deleting) of history tables can be done with the Archive/Delete Revenue Document Line History (cirrc1260m000) session. Note: If the Log History check box is cleared, while closing the contract/revenue document line you can create a history record, in that case only one history record is present for each original record.
  • Status: You must define the Revenue Document Line Status in the Revenue Document Lines (cirrc1110m000) session.