2 Replies Latest reply: Dec 12, 2013 6:13 AM by Dina Rotem RSS

    Is it possible to have Oracle Projects recognize revenue only when client approves the invoice?

    Akagi316

      Hi everyone,

       

      I work for a global consulting company that uses Oracle to generate Project Invoices based on Time Cards in Oracle Projects. Our invoicing process for US is straightforward and we have no problems there. But it is more complicated for China because in China clients need to see a draft invoice first and once they approve it then we can create the real invoice (called Fapiao in China). Nothing is booked in GL for the draft invoice (no AR/VAT/Revenue) and everything is booked in GL for the Fapiao (AR/VAT/Revenue). Here is an example:

       

      1. There is 10,000 of consulting work done from October 20 to October 30 for Project ABC. Client approved the 10,000 invoice for Project ABC on December 20.

      2. There is 30,000 of consulting work done from November 5 to November 15 for Project ABC. Client approved the 30,000 invoice for Project ABC on November 18.

      3. We need AR/VAT/Revenue for the 10,000 invoice to be booked on December 20 and we need AR/VAT/Revenue for the 30,000 invoice to be booked on November 18.

       

      How would Oracle be able to handle a situation like this? The AR/VAT portion is easy to fix because we can incomplete the invoice in Oracle Receivables (Create Accounting will not book AR/VAT when the invoice is made) and once the invoice becomes Fapiao then we can change the GL Date to the Fapiao Date and complete the invoice in Oracle Receivables (Create Accounting will book AR/VAT when the invoice becomes Fapiao). However, we're not sure how to deal with revenue here since Oracle books revenue in GL in Oracle Projects. We thought of some solutions but none of them seem feasible:

       

      1. Create draft invoices in Excel and send them to the client. Once they become Fapiao, start making the invoice in Oracle (generate draft revenue/invoice, release revenue/invoice...etc in Oracle Projects). However, Oracle is not able to generate a specific range of revenue at a specific accrue through date. In the above scenario, generating draft revenue/invoice using November 18 as the date would force you to include the work done from October 20 to October 30 as well. Billing hold will not work since it doesn't hold revenue. Furthermore, we want to go through everything in Oracle and not use Excel.

      2. Have Oracle make the revenue journal entry in Oracle Projects but leave it as unposted in GL. Once we know the corresponding invoice is a Fapiao, then we book the revenue journal entry manually in GL using the Fapiao Date. However, this seems too manual and cumbersome and we want Oracle to automate the process.

       

      Is there a way for Oracle Projects to recognize the corresponding revenue for an invoice when the invoice is completed in Oracle Receivables? That solution would work for us but we're not sure how difficult that would be to do...or perhaps there is another kind of solution we are not seeing?

       

      Thanks,

      Jimmy