Use of ceilings in revenue recognition

When you process revenue programs, the application looks first for a ceiling record at the lowest level (billing category), or on the revenue activity associated with the transaction. If a ceiling record exists at the lowest level, then a ceiling amount or unit is applied to the transaction. The transaction then moves to the next level (billing activity account category), where a ceiling amount is applied to the transaction if a ceiling record exists. At the next level (billing level activity without an account category attached), the transaction again looks for a ceiling record. If there is a ceiling amount, then it is applied to the transaction. Finally, the transaction moves to the contract level, where again it looks for a ceiling record.

If a transaction amount exceeds the ceiling but is within the tolerance amount, then the excess amount is sent to the ACTRANSERR for UNIX and Windows or DBBRTER for IBMi file where a revenue-at-risk transaction is created. You can define a journal code to post revenue-at-risk amounts to both Project Accounting and General Ledger. If the ceiling amounts are increased, when you run Revenue Calculation (BR130) to update your revenue amounts, then the revenue at risk entries will be reversed automatically. New revenue-at-risk transactions will be created if the overage is still above the new ceiling amount.