Hi Community,
We are using charge-based billing projects with project revenue recognition. We have two types of project typically - Time & Material and Fixed Fee/Fixed Date.
Revenue Recognition is working nicely for us for the initial revenue events (recognising As Charged on either Time-Based or Fixed Date billing rules). The issue comes when we must raise a Credit Memo for an Invoice.
The Credit Memo obviously has its own GL impact - Dr Deferred Revenue Cr AR, however, we cannot seem to properly create or update a Revenue Arrangement/Revenue Plan which subsequently would generate a revenue recognition journal entry to reverse the original Income posting. I have tried two approaches:
(1) Add Project and Charge-Type to the Credit Memo. According to this documentation that should cause the Projects original Revenue Arrangement to update reflecting the new Credit Memo value (and presumably the revenue plan)
In this scenario, when updating revenue arrangements, simply nothing happens. Per the documentation, the Credit Memo does not receive it's own new RA, but, the Projects existing RA is not updated either.
(2) To counter the above issues, I have tried not adding the Project and Charge-Type. This creates a Revenue Arrangement on the Credit Memo, but, we are unable to create a Revenue Plan. I assume because the Invoice's original Item is configured for Progress Percent Complete or Project Revenue Event and is not triggering plan creation because creating the Credit Memo itself does not trigger those events. It is possible here to Merge the new arrangement with the old, but, no revenue plan is created for the Credit Memo portion of the RA.
Can anyone give any guidance on what may be the missing piece here?
Bonus points if solution also includes how to re-invoice/re-bill after the Credit Memo has been raised. I cannot see that there is a documented standard approach to this, I figure there are two solutions:
(1) Manually re-create charges as required and Invoice
(2) Manually create a charge-less Invoice using some other Item to ensure Revenue Recognition/Plan Creation triggers on Invoice creation.
SuiteProjects Pro has a re-bill option, but, it does not seem so straight forward with SuiteProjects!
Thanks
