Prepare interim recommendations, complete workpapers and prepare an audit draft report. Revenue Adjustment Reason Lookup Type Use the Revenue Adjustment Reason lookup type to define reasons specific to your enterprise for making revenue adjustments.
If the transaction is associated with a contract that offers a refund period that exceeds the refund policy, Receivables assigns a time-based revenue contingency to the transaction and only recognizes revenue after the refund policy period expires.
Send positive confirmations on administrative billings and negative confirmations on BRS billing.
This is because AutoAccounting derives the anticipated revenue accounting distribution accounts and amounts, thereby overriding the event-based revenue management process. If revenue on an invoice was deferred due Icq revenue and receivables unexpired time-based contingencies only, then the reversal of a receipt does not impact the amount and timing of revenue recognition.
Revenue accounting requires that you assign sales credits to all transactions that can be adjusted for either revenue or sales credits. For transactions assigned time-based revenue contingencies, you can recognize revenue manually if the contingency is met in advance of the specified time period, for example, a customer provides early acceptance of the terms of a post-billing customer acceptance clause.
If you apply a credit memo against an invoice with revenue that was already manually adjusted, then Receivables follows standard credit memo functionality. If necessary, use the Manage Revenue Adjustments pages to make any further adjustments.
If you later reverse the receipt, Receivables automatically unearns the previously earned revenue. Modifying Distributions and Sales Credits You can manually change the accounting distributions and sales credits on an invoice with contingencies. You can optionally clear the negative unearned revenue on this invoice.
If the amount of the credit memo exceeds the amount of the unearned revenue on the invoice, and the credit memo transaction type allows overapplication, then Receivables records the excess amount as a debit to the unearned revenue account. Otherwise, AutoAccounting cannot derive a valid account code combination for revenue recognition.
Determine if there is separation of the billing and accounts receivable duties.
If revenue on this invoice was deferred due to unmet payment-based contingencies, then Receivables always debits the unearned revenue account for the full amount of the credit memo, according to the initially assigned revenue scheduling rules.
For sales credits, you rerun AutoAccounting when you modify sales credits. When you credit an invoice that is not under evaluation for event-based revenue management, Receivables prorates the amount of the credit memo between the earned and unearned revenue invoice amounts.
Crediting Invoices If you issue a credit memo against an invoice that had revenue automatically deferred upon import, then the impact of the credit memo on the invoice differs depending on the original reason for the revenue deferral. When you re-earn revenue on invoices with non-deferred revenue scheduling rules, Receivables uses the original schedule, as illustrated by the February 2 row.
If necessary, use the Manage Revenue Adjustments pages to make any further adjustments. The invoice is no longer subject to automatic revenue recognition.
This is because AutoAccounting derives the anticipated revenue accounting distribution accounts and amounts, thereby overriding the event-based revenue management process. In this case, you must confirm that the earned and unearned revenue on the invoice is stated appropriately for each period.
If a transaction has a deferred revenue scheduling rule, then all revenue is assigned to the unearned revenue account.
You can expire a revenue contingency at any time, according to the circumstances surrounding the contingency and the related transaction. When do I expire a revenue contingency? If you later reverse the receipt, then Receivables reflects the receipt reversal by simply removing the pending status from the receipt amount.
At this stage, February is open. For distributions, you change an existing accounting distribution to a revenue or any other account. When do I expire a revenue contingency? For example, if all lines of an invoice are associated with a nonstandard refund policy 90 daysReceivables recognizes revenue only upon the expiration of the day period.
Determine if controls exist to insure that Telecommunications is rebilling carrier charges to administrative and student accounts. The invoice is no longer subject to automatic revenue recognition.
If you apply a receipt to an invoice with a payment-based contingency, Receivables initiates revenue recognition for the applied amount. A portion of the invoice revenue, therefore, is still in an unearned revenue account.
You can expire a revenue contingency at any time, according to the circumstances surrounding the contingency and the related transaction. Receivables prorates the credit memo amount between the earned and unearned revenue amounts on the invoice, even if the invoice was initially analyzed for collectibility and acceptance.
Judgmentally select a sample of past due accounts receivable or as an alternative, consider statistical sampling.Receivable Questionnaire Internal Control Questionnaire YesQuestion No N/A Remarks The duties of accounts receivable record keeping should be segregated from the custodial and authorization functions.
Gain a thorough understanding of the department's revenue cycle. Determine controls designed to ensure: sales are billed accurately and promptly, sales and accounts receivable are recorded accurately, and outstanding receivables are.
Receivables recognizes revenue for Lines 1, 2, and 4 in the amount of $80 each. Receivables can't recognize revenue for Lines 3 and 5 due to the unexpired time-based contingencies. Receivables therefore marks the $80 payments for Lines 3 and 5 as amounts that are pending revenue recognition at a later date.
Revenue is scheduled when Oracle Fusion Receivables creates, for a transaction line, the revenue distribution records for all accounting periods as specified by the revenue scheduling rule assigned to each line.
Journal Entry and Transfer ICQ. Monitoring ICQ. Other Revenue ICQ. Personnel and Payroll ICQ. Petty Cash ICQ. Plant, Property and Equipment ICQ. Purchasing ICQ. Receivables ICQ. Risk Assessment ICQ. Tuition ICQ. Title: INDEX OF INTERNAL CONTROL QUESTIONNAIRES (ICQ’s) Author: mkingery Last modified by: idjmw.
Revenue lost due to inadequate procedures or improper accounts. All collections are properly identified, control totals developed, and collections promptly deposited intact and applied to the proper accounts.Download