Receivables and Cash
Revenue Management
Prospective Accounting Treatment for Performance Obligations Using Point-in-Time Revenue Recognition
Use the prospective accounting treatment to reflect minor volume changes, pricing changes, or additions of performance obligations defined with a point-in-time revenue recognition satisfaction measurement model.
Certain contract amendments involve minor changes in volume or price. These changes are future oriented with no impact on the recognized revenue. You can now account these changes using prospective accounting. This feature extends the prospective accounting treatment to performance obligations with a point-in-time revenue recognition model.
For immaterial changes in quantity, unit selling price, or unit list price of an obligation with a satisfaction measurement model of quantity and percentage, the changes are now reflected in the revenue by reallocating the unrecognized revenue on the open performance obligations of the contract. This applies to current and future periods only doesn’t impact the revenue that has already been recognized.
In addition, if you add a new point in time performance obligation to an existing contract, this can also be considered as an immaterial change to trigger prospective accounting.
The changes are reflected from the contract revision date. The date on which the immaterial changes occur is sent to Revenue Management as the contract revision date.
All performance obligations that are not fully satisfied are open performance obligations and the remaining transaction price is allocated among all open obligations. This includes the obligations that have the satisfaction measurement model as Quantity and Percent.
Receivables
Transaction Printing After Electronic Invoice Generation
Print Receivables transactions after generation of XML invoices for tax authority approval or trading partner communication.
Electronic invoicing and transaction printing streamline financial transactions and provide more accurate and transparent data to businesses and tax authorities, contributing to better government compliance. In Israel, for example, new standards in 2024 require generating the electronic invoice for the tax authority to provide a confirmation number. The confirmation number received from the tax authority is then printed on the customer invoice. Because of requirements like this, companies need to be able to update and print the customer invoice after it was generated electronically for review by the government tax authority.
Major components of transaction printing after electronic invoice generation include:
Generate and send Receivables transactions to your service providers as XML invoices in UBL 2.1 format.
Print Receivables transactions based on the Preferred Delivery Method field in the customer account or site profile.
Enable the feature in the Manage Financial Information page by defining the value XML delivery along with PDF generation in the global Preferred Electronic Invoice Delivery Method descriptive flexfield.
Print Receivables transactions for specific legal entities after the electronic invoice is generated.
Generating the XML file:
Run the Generate and Transfer XML Transactions process to generate and send the UBL 2.1 file to your service provider. The process will run on all completed transactions created for a legal entity with a XML delivery along with PDF generation setup, and the Generate Bill option set to Yes.
When the Legal Entity feature is enabled, the XML file is generated independent of the Preferred Delivery Method defined on the customer account or site. The Collaboration Messaging Service provider and Trading Partner setup must be defined. When the setup is missing, the CMK process will end in error.
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