Overview
Review and post eligible policy-driven revenue without losing order, invoice, or shipment lineage.
Before you begin
Item assignments support DIRECT and BILLED_AND_DELIVERED. Finance must review income/deferred accounts, legacy balances, and the Deferred Revenue Register before enabling policy-driven recognition in OTC Setup.
Main task
- Review the Deferred Revenue Register and resolve register-to-OTC-GL variance before enabling the subsidiary recognition switch.
- Set the item’s policy and deferred override where required. Final order approval captures the line’s policy and account version.
- Approve source invoices and post fulfillment. For BILLED_AND_DELIVERED, invoices credit deferred revenue; eligible billed/net-delivered overlap creates pending plan lines.
- Open Revenue Recognition and inspect each plan line’s sources, amount, accounts, and posting date.
- Approve and post eligible lines. Inspect the dedicated recognition journal and links to its plan.
- For recognized returns, review negative plans, provide the required reason, and post the linked reversal before approving affected credits when required.
Check the result
DIRECT lines credit captured revenue on invoice posting. BILLED_AND_DELIVERED uses deferred revenue until the eligible recognition journal is posted. Recognition journals do not change VAT, WHT, inventory cost, or A/R.
If something goes wrong
Closed-period exceptions remain visible; choose an approved open posting date through the plan action after resolving the exception. Reversal is a linked negative plan, not deletion of the original journal. Time-based plans, performance-obligation allocation, contract assets, and multi-book recognition are outside this release.