What if Revenue Recognition is Triggered in Error?

 

As an example, we may have a situation where a customer has advanced revenue recognition switched on for an item category where revenue is recognised ‘On Payment in Full’. 

 

Then, the customer accidentally processes a receipt against the invoice and suddenly realises they have receipted against the wrong invoice.

 

The problem here is the payment in full trigger has been activated on the incorrect invoice, meaning revenue has been recognised along with the associated transactions against COGS, if this was an ROI item.

 

We will outline the steps below in relation to the correction entries required.

 

At this stage, a consultant will need to be engaged to assist with the process.

 

There are several steps involved in untangling the incorrect application of the receipt.

 

There is a separate document which can be provided to customers to assist them with the process to re-set the item back to not redeemed and ensure the appropriate general ledger balances are back in balance.

 

Someone with appropriate rights / OpusXenta staff will need to delete the receipt in byondpro.

 

Depending on whether the receipt batch has been posted or not in Sage 300, the customer will need to either reverse the receipt or delete the receipt from the receipt batch.

 

Depending on whether the general ledger batch has been posted or not in Sage 300, the customer will need to either reverse the general ledger transactions or delete the entry from general ledger batch.

 

Someone with appropriate rights / OpusXenta staff will need to reset the item back to not redeemed via the database.

 

Caution should be applied in making changes within the database. It is definitely recommended an OpusXenta staff member with the appropriate technical knowledge reset this.

 

Coming soon, similar to the rights an appropriate users has to force an item to be redeemable (where for example an invoice is not paid in full, but needs to be taken up for one reason or another) a design is in progress for a new feature button to reset an item back to being marked as requiring redemption again.

 

Having said that, it is only the action to reset the item back to sitting waiting to be redeemed. 

 

The untangling of transactions / receipts / GL entries will still fall to the cemetery to manage and reverse as applicable.