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Invoicing Rules in Receivables - In arrears (Subscriptions Scenario)

Received Response

We have a scenario where the subscriptions are created with a billing frequency of quarterly or yearly but are invoiced in Arrears.

In this case, the customer is expecting accounting entries to be generated monthly as revenue recognition is based on the service provision and not actually the sending of the invoice to the customer.

Based on our findings we have seen the following:

  • If the subscription billing information is sent at the end of the period, accounting only happens at the end of the period. There is no standard way to create the monthly accruals;
  • If the subscription billing information is sent today (with transaction date 01-05-2024 as an example for quarterly sent today where product start line is 01-02-2024). The accounting date is automatically moved to 01-04-2024 which is a closed period in Oracle. This triggers the whole accounting to fail with the error that accounting date 01-04-2024 is in closed or not future enterable period.

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