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defer invoicing or revenue recognition

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  • defer invoicing or revenue recognition


    Our company is a full Oracle Applications user. I have a question about standard OTM functionality.
    We shipment verify in our Distribution Centers and relieve inventory using standard Oracle 11i functionality. Our international freight forwarder picks up the cargo but holds it for 24 to 72 hours before it is given to an airline to transport.

    Our accountants do not want to recognize revenue until the cargo is loaded and airborne on its way to the end user customer.

    Is there a way using standard OTM functionality to defer invoicing or revenue recognition within the Apps AR module until we can verify the cargo is loaded and airborne?

    Any suggestions are welcome.

    Thanks and Best Regards,

    Jim Shaughnessy

  • #2
    Re: defer invoicing or revenue recognition

    Hi Jim,

    You can use the "status code" feature available with OTM to achieve this.I have seen some customers using this feature for revenue recognition
    Warm Regards,


    • #3
      Re: defer invoicing or revenue recognition

      For users of Oracle Applications I found a Release Content Document for the Oracle E-Business Suite Release 12 titled: r12_logistics_rdc.pdf that contains the following notes: Customer Acceptance/ Deferred Revenue

      This feature will allow for more sophisticated accounting to take place as a result of ship confirmation. When customer acceptance and other common contingencies are required prior to recognizing revenue for a shipment, Oracle Shipping Execution will support deferring the revenue through integration with Oracle Receivables. In addition to user directed events, implicit acceptance will be supported using a number of days after shipping.