Billing and Revenue Management (MOSC)

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How to Credit an Invoice with a Deferred Accounting Rule

edited Sep 26, 2014 5:04AM in Billing and Revenue Management (MOSC) 1 commentAnswered

Oracle EBS 11i

We have a situation where we sell extended warranties with our product.  The extended warranty does not start until the initial product warranty has expried, typicall one year after purchase.  In this situation will bill for the extended warranty when the product is shipped, and record unearned revenue.  The revenue is then scheduled to be recognized starting in year 2. The extended warranty item is setup with a deferred accounting rule with a fixed schedule of monthly, the invoice rule is in advance.

1/1/14 Product and Extended Warranty is Invoiced

1/1/15 Extended warranty revenue is scheduled to be recognized from 1/1/15 - 12/31/15

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