About adjust revenue amounts

You can adjust revenue amounts using Revenue Adjustment (BR43). You might need to adjust revenue amounts because of these reasons:

• At the end of a contract, a permanent revenue adjustment may be needed to clear remaining billed/unbilled balances.

• The recognized revenue for cost plus revenue contract may need to be adjusted to match the billed amount.

• A temporary revenue adjustment may be needed to correct an error in calculating a revenue amount. If the error is corrected in the future, the temporary revenue adjustment can be reversed.

When you create a revenue adjustment, an offset transaction is automatically created. If you do not want the offset transaction to be available for revenue calculation, then you can put the offset transaction on hold. The revenue amount on both transactions is the amount you enter, but the cost and billable amounts are zero. Therefore, no burden transactions are created from a revenue adjustment. The adjustment amount is entered in the contract currency.

After you enter a revenue adjustment, the next time you run Revenue Calculation (BR130), AC and GL journal entries are created for the revenue adjustment transaction, and ceiling and tolerance calculations are performed.

Revenue adjustments must be made to posting activities on Revenue Adjustment (BR43.1), and the account category used for the adjustment must be a cost account category. You must use a transaction-based revenue method to make revenue adjustments. See Adjusting Revenue Amounts.