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Deferral schedules

Deferral schedules are created after a transaction has been posted.

You can use the All deferral schedules or Active deferral schedules page to review the details about a deferral schedule. The information that is shown depends on the type of deferral schedule (straight line or event-based) and the transaction type. It includes the deferral schedule lines and the total amounts for the deferral schedule. You can use the page to modify the deferral schedule.

Recognize revenue

Note

  • To recognize revenue for one deferral schedule, start at step 1.
  • To recognize revenue for multiple schedules, start at step 2.
  1. On the All deferral schedules page, in the Schedule lines grid, select the lines that you want to recognize, and then select Recognize.
  2. On the Recognition processing page, set the Recognition action field to Create recognition journal.
  3. In the Cutoff date field, select the cutoff date. The processing will include only lines where the end date is earlier than or the same as the selected cutoff date.
  4. Select Filter, and add data filters so that the list shows only the range of records that you want.
  5. Select View preview to view the lines.
  6. In the list of lines, select any lines that you don't want to process, and then select Remove.
  7. Select whether you want to summarize the recognition journal entry.
  8. In the Transaction date section, you can override the transaction date with a specific date to process the transaction. The transaction date can be specified for closed periods.
  9. To do the processing as part of a batch, select Batch. In the Batch processing dialog box, set the parameters for the batch, and then select OK to return to the Recognition processing page. The revenue recognition is processed later, when the batch is processed.
  10. Select Process. If you didn't add the transaction to a batch, all lines are immediately processed. Otherwise, the lines will be processed when the batch is processed.

Modify a schedule

To modify a deferral schedule, follow these steps.

  1. On the All deferral schedules page, select the deferral schedule, and then select Accounting > Modify schedule.
  2. On the Modify schedule page, edit the options that you want to change. Depending on the deferral schedule, you won't be able to edit all the options.
  3. Select Preview to review the changes to the deferral schedule.
  4. Select OK.

Straight line deferral schedules

If the deferral schedule has no recognized or externally posted lines, you can modify the whole deferral schedule, including the start date.

If the deferral schedule has any recognized or externally posted lines, and you modify the deferral schedule, the resulting behavior of the deferral schedule depends on the recalculation date and the deferral end date of recognized lines. By default, the first period that wasn't recognized determines the deferral end date.

To use the date of recognition, select one of the following values in the Start of schedule field:

  • Catch up – The amount after all recognized lines are recalculated.
  • Reversal – Any lines after the recalculation date are reversed by using the specified journal name and posting date. The amount after the recalculation date is then recalculated.

If a template is used, the skipped periods are ignored, and the template is used only to calculate the end date.

Event-based deferral schedules

For an event based deferral schedule, you can modify all unrecognized lines.

If the deferral schedule has any recognized or externally posted lines, you can't modify the template and allocation type for the deferral schedule. When you modify an existing deferral schedule, you can't change the value of the Create separate events per unit field.

If a line is recognized or externally posted, the Recognized checkbox is selected.

Modify a deferral or recognition account

To modify the deferral or recognition account for a deferral schedule, follow these steps.

  1. On the All deferral schedules page, select the deferral schedule, and then select Accounting > Modify account.
  2. On the Modify Account page, select the account that you want to change (deferral, short-term, or recognition).
  3. In the New account field, select the new account.
  4. Select whether changes to the account create adjustment journal entries.
  5. If you set the option to Yes in the previous step, select the journal name in the Journal name field, and specify the transaction date in the Transaction date field.
  6. Select OK.

Put a deferral schedule on hold

To put a deferral schedule on hold, follow these steps.

  1. On the All deferral schedules page, select the deferral schedule, and then select Hold > Place hold.
  2. On the Place hold page, select whether you want to transfer the balance from the deferral account or the hold account.
  3. If you selected to transfer the balance, select the journal name in the Journal name field, select the hold account in the On hold account field, and specify the transaction date in the Transaction date field.
  4. Select OK.

Note

The Deferral balance report doesn't display the billing schedules that are currently on hold. To view the report, go to Revenue and expense deferral > Inquiries and reports > Deferral balance.

Remove a hold from a deferral schedule

To remove a deferral schedule from a hold, follow these steps.

  1. On the All deferral schedules list, select the deferral schedule, and then select Hold > Remove hold.
  2. In the Journal name field, select the journal name.
  3. In the Transaction date field, specify the transaction date.
  4. Select OK.

Cancel unrecognized amounts

Note

Any lines that have already been recognized or externally posted are excluded from this process.

To cancel unrecognized amounts on a deferral schedule, follow these steps.

  1. On the All deferral schedules page, select the deferral schedule, and then select Cancel > Unrecognized amounts.
  2. On the Cancel unrecognized amount page, select whether you want to create cancellation entries.
  3. If you selected to create cancellation entries, select the journal name in the Journal name field, select the cancellation account in the Cancellation account field, and specify the transaction date in the Transaction date field.
  4. Select OK.

Cancel a completed schedule

Use the All deferral schedules page to reverse any recognized or externally posted amounts and cancel the deferral schedule to prevent further recognition.

To cancel a whole deferral schedule, follow these steps.

  1. On the All deferral schedules page, select the deferral schedule, and then select Cancel > Complete schedule.
  2. On the Cancel complete schedule page, select whether you want to create cancellation entries.
  3. If you selected to create cancellation entries, select the journal name in the Journal name field, select the account in the Cancellation account field, and specify the transaction date in the Transaction date field.
  4. Select OK.

Reverse transactions

Note

  • To reverse revenue recognition for one deferral schedule, start at step 1.
  • To reverse revenue recognition for multiple schedules, start at step 2.
  1. On the All deferral schedules page, in the Schedule lines grid, select the lines that you want to unrecognize, and then select Reverse.
  2. On the Recognition processing page, set the Recognition action field to Reverse recognition journal.
  3. In the Cutoff date field, select the cutoff date. The processing will include only lines where the end date is earlier than or the same as the specified cutoff date.
  4. Select Filter, and add data filters so that the list shows only the range of records that you want.
  5. Select View preview to view the lines.
  6. In the list of lines, select any lines that you don't want to process, and then select Remove.
  7. The Name and Description fields are automatically updated with the default journal name and description. You can change the values as you require. You can also select whether you want to summarize the recognition journal entry.
  8. In the Transaction date section, you can override the transaction date with a specific date to process the transaction. The transaction date can be specified for closed periods.
  9. To do the processing as part of a batch, select Batch. In the Batch processing dialog box, set the parameters for the batch, and then select OK to return to the Recognition processing page. The reverse revenue recognition will be processed later, when the batch is processed.
  10. Select OK. If you didn't add the transaction to a batch, all lines are immediately processed. Otherwise, the lines will be processed when the batch is processed.

Apply or unapply a credit note

To apply a credit note, follow these steps.

Note

When you create a credit note from the Sales order transaction deferral page and set the Adjust existing schedule option to Yes, the credit note is automatically applied to the schedule when the credit note is posted.

  1. On the All deferral schedules page, select the deferral schedule.
  2. In the Credit adjustments list, select a line, and then select Apply.
  3. On the Apply credit note (deferrals) page, specify the recalculation date in the Recalculation date field and the end date in the End date field.
  4. In the Header list, select the Sales order that has credit notes.
  5. In the Lines list, select the line.
  6. Select OK.
  7. Select Yes.

Note

To apply a credit note to several individual items from different invoices, you must repeat these steps.

To unapply a credit note, follow these steps.

  1. On the All deferral schedules page, select the deferral schedule.
  2. In the Credit adjustments list, select the invoice, and then select Unapply.
  3. Select Yes.

Fields

The All deferral schedules page contains the following fields.

Fields Description
Header
Schedule
Allocation type The allocation type, for event-based deferrals: Percentage or Amount.
Reclassification date

The most recent date when the short-term reclassification for a deferral schedule was processed. This date is updated each time that the Event short-term reclassification is used for the deferral schedule.

This field is available only when the rolling periods or fixed year short-term deferral method is used.
Account
Deferral account The account that is used for the deferral amount.
Recognition account The account that is used for the recognition amount.
Recognition type The recognition type.
Distribution type The distribution type.
Transaction
Creation source The source that the transaction was created from.
Transaction type The transaction type.
Sales order The sales order number.
Invoice The invoice number.
Item The item number.
Billing schedule
Billing schedule number The number of the corresponding billing schedule.
Billing line status The status of the corresponding billing schedule line item.
External references Information about external references from the billing schedule: External and Line number.
Totals

Amount totals for the deferral schedule:

  • Long-term – The sum of long-term deferred amounts. This value is available only when the Short-term deferral method field is set to None on the Revenue and expense deferrals parameters page, or the short-term amount is more than 0 (zero).
  • Short-term – The sum of short-term deferred amounts. This value is available only when the Short-term deferral method field is set to None on the Revenue and expense deferrals parameters page, or the short-term amount is more than 0 (zero).
  • Unrecognized – The sum of unrecognized amounts for all lines.
  • Stubbed – The sum of externally posted amounts for all lines.
  • Recognized –The sum of recognized amounts for all lines.
  • Externally posted and recognized – The sum of externally posted and recognized amounts for all lines.
  • Total amount – The sum of amounts for all lines.
Schedule lines
Line The line sequence number.
Deferral start date The start date of the deferral schedule.
Deferral end date The end date of the deferral schedule.
Amount The deferral amount.
Externally posted A value that indicates whether the line has been externally posted.
Recognized A value that indicates whether the line has been recognized.
Journal batch number The batch number that the amount was recognized in.
Event Description A description of the event. This field is available only for event-based deferral schedules.
Credit adjustments
Invoice

The invoice number.

The value indicates the invoice for the credit note adjustment that has already been applied to the deferral schedule.
Applied amount The credit adjustment amount that has already been applied to the deferral schedule.
Applied date The date when the credit adjustment was applied.
Adjustment The adjustment values appear only if a credit memo was processed for the deferral schedule. If no credit note was processed, these values are hidden.
Adjustment amount The total adjustment amount, calculated as Original amount – Schedule amount.
Original end date The original end date of the deferral schedule.
Original schedule amount The total of the original deferral schedule.