Skip to Main Content

Analytics Software

Announcement

For appeals, questions and feedback about Oracle Forums, please email oracle-forums-moderators_us@oracle.com. Technical questions should be asked in the appropriate category. Thank you!

Credit Memo to Deferred Revenue is not amortizing correctly

670870Nov 20 2008
We issued a Credit Memo to a client related to an invoice that was originally deferred over 80 months straightline. When we issued the Credit Memo it is not taking debits to Revenue until 3 years down the road. When in fact it should be debiting Revenue for the Credit Amount divided by 80 months equally until the end of the amortization period.

The Credit Memo is essentially pushing the negative Revenue to the back end of the amortization period, while continuing to fully recognize Revenue on the original invoice up until that point. You can see how this could dramatically overstate Revenue if we did this with any regularity and with large enough Credit amounts.

Have any of you seen this before? I would really appreciate any insight.


Thank you.
Comments
Locked Post
New comments cannot be posted to this locked post.
Post Details
Locked on Dec 18 2008
Added on Nov 20 2008
0 comments
545 views