Oracle Projects – Revenue Generations and Credit Memo Questions

Why does the Invoice Class show as Invoice instead of Credit Memo when an invoice reduction event is created?
A:  This is the intended functionality.  In the case of Invoice Reduction Events, there is no specific invoice to credit, therefore they are created with the class of Invoice instead of Credit Memo.

What accounting is performed when an invoice write-off is initiated in Projects?

A:   The Revenue and Invoice Accounts function is called by AutoAccounting when the credit memo type is a Write-Off.  The accounting that is performed is a credit to the Receivable Account and a Debit to the Expense Account that has been set up for Write-Offs in the AutoAccounting setup. Revenue would not be affected by a Write-Off.  The expense would offset the revenue in the income statement.

 What happens when an invoice is canceled?


A:  When an invoice is canceled, the transactions that make up the invoice are returned to an unbilled status and made available for rebilling during the next billing cycle.  After an invoice is canceled, the PRC: Generate Draft Invoice process creating the Credit Memo replaces the columns      PA_CUST_REV_DIST_LINES_ALL.DRAFT_INVOICE_NUM and PA_CUST_REV_DIST_LINES.DRAFT_INVOICE_LINE_NUM with NULLs for the expenditure items being credited.  This results in the “missing” details in the original invoice and the credit memo.

How does Oracle Projects handle on account credit memos?

A:  From a Projects perspective, the only way to manage an “on account” credit memo is to create the independent crediting invoice using a negative manual event.When the time comes to apply the credit to the proper invoice, create a positive event (debit memo) to offset the negative invoice then create a standard credit memo against the appropriate invoice.


How are partial write-offs handled when the invoice has tax?

 A:  When you do a partial write-off in Projects, it credits a small portion of each invoice line. If you need to write-off a particular line of a Projects invoice, a partial write-off should be done in Projects and interfaced to Receivables so that the two modules are in synch.  From Receivables, incomplete the invoice and adjust it.  Using this method will ensure that the modules stay in sync and only the lines that you want to write-off will be written off.


Under what circumstances would I delete an invoice rather than canceling it?

 A:  An invoice can only be deleted if it has not been released. Once the invoice is released, it would need to be canceled to create an offsetting credit memo. Deletions do not create credit memos.


Is it possible to apply a credit memo to an invoice that has already been paid in Receivables?

A:  If the Invoice Type in Receivables has Overapplication = Yes, you should be able to interface the credit to Receivables.  If you do not wish to set Overapplication to Yes, you can unapply the cash receipt in Receivables and refund it to the customer or apply it to another invoice.


Why does the Generate Draft Invoices for a Range of Projects process automatically release revenue?

A:  When revenue is generated for a range of projects, revenue items are given a status of Released; when it is generated for a single project, the status assigned is Pending.  Because the status is released for revenue generated for a range, Projects automatically releases this revenue when the Interface Revenue to General Ledger (GL) process is run.  If there is a need to manually release revenue, you will have to run the PRC:  Generate Draft Revenue for a Single Project.  When ready, the revenue can be released manually from the Revenue Review window.

Why is revenue automatically released when releasing some invoices?

A:  When you release an invoice which is based on revenue details (such as a Time & Materials (T&M) invoice), Oracle Projects automatically releases the associated revenue.

Why is the project level bill rate schedule not recognized when generating draft revenue?

A:  Revenue is generated based on the Bill Rate Schedule saved at the task level.  Entering the Employee Bill Rate Schedule at project level is only allowed for default purposes; not for calculations.

What are the possible values for TRANSFER_STATUS_CODE in the PA_DRAFT_REVENUES_ALL table?

A:  When revenue is successfully generated, the status is set to P (Pending).  After running the Interface Revenue to General Ledger process, the status is set to A (Accepted) for successfully transferred revenue or X (Rejected in Transfer) for revenue that is rejected.  When the Tieback Revenue From General Ledger process is run, there will be no change to the A (Accepted) items but those items rejected by the GL will be set to R (Rejected) and will require correction and re-interface.

Is it possible to unrelease revenue?

A:  It is only possible to unrelease revenue if none of the following actions have been performed:

  1. Released draft invoices for this draft revenue
  2. Subsequently generated draft revenue
  3. Summarized draft revenue for the project

Is it possible to generate partial revenue when a Hard Limit exists on an Agreement?

A:  No.  Projects accrues revenue for an event only if enough funding is available to accrue the full event amount. You can, however, accrue expenditure item revenue up to hard revenue limits by partially accruing the potential revenue.  The expenditure items are marked as partially accrued; they can be fully accrued by adding more funding prior to the next revenue generation run.

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