Revenue Contingencies Removal for Credit Memo Application

Summary:

Our requirement is to have revenue contingency removal on based on Payment event which is working perfectly fine as expected

Payment based contingency rule has been assigned to specific Transaction Type name

Once AR invoice is created, unearned revenue is recognized and after payment, revenue gets recognized

Invoice Creation:

Dr Receivable

Cr Unearned Revenue

Receipt Application:

Dr Cash

Cr Receivable

Revenue Recognition:

Dr Unearned Revenue

Cr Revenue

However, this contingency rule does not works when Credit Memo is applied to the Transaction.

Business expects when On Account Credit Memo is applied to Open Invoice (same Transaction Type to which Payment based contingency removal event is assigned) with Unearned Revenue, it should remove revenue contingency i.e. complete Revenue recognition similar to Payment