Stop the realization of revenues for a particular Transaction in AR

Hello

I have a scenario where a client pays upfront for a service item / which will provide us in the future every month. Accounting rules (fixed amounts such as 12 months, 15 months) allows us to recognize revenues in several bouts. Lets say any such transaction took place January 1, 2015, with a value of $1200. Since we use the accounting rule of 12 months, this amount will be recognized back asd $100 every month. Then at the end of February, customer wishes not to receive this service from March. That's why we have to stop recognizing the revenue for the 10 months left in the future. (we are in R12.0)

Ledger entry from 1 to January 1

Dr. debtor 1200

Unearned income CR 1200

Journal entry of 2 in 1 Jan

Dr. cash 1200

CR 1200 debtor

Ledger entry from 3 to 1 January

Dr. Uneanred revenue 100

CR 100 recipes

Input3 accounting will be generated for all 12 months. I need to stop this accounting of March writing leave. How to do this?

Thank you

Lakshith

Hi all

Thanks for all the inputs. I found the solution. We need to the credit of the transaction that will reverse all the entries created from March to December.

Must first set up the profile option: AR: use invoice accounting for credit memos.

Can credit the transaction using the LIFO rule.

Thanks to all for the replies.

Kind regards

Lakshith

Tags: Oracle Applications

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