Is it possible to separate Billing from Revenue Recognition in Oracle Order Management, R12. Below are more details of the requirements...
We are using EBS R12 OM, WIP and BOM. Our users have a requirement where revenue recognition should take place at the time of shipping the finished goods, whereas the billing should happen as per the contractual terms with the end customers. In order to recognize the revenue, AR Invoices are being raised. However, this creates issues as the customer's invoice is not yet due - this causes issues in customer aging, tracking invoices manually, to coincide with contracutal terms, etc. Following are some specific questions..
Q.1 Can the revenue recognition of the shipped goods take place without raising AR invoices?, If so, how?
Q.2 I understand that the Payment terms, defauliting from the Customer Master can be overridden in the Sales order. However, the requirements are a bit more complicated. Some of the contractual terms would have complex billing terms - for instance, 10% advance, 30% after X milestone with proporational adjustments of the advance, 50% after Y milestone with proporational adjustments of the advance, and remainder 10% to kept as retention amount for warranty etc, to be paid after a year.
Has anyone experienced this kid of requirements - would appreciate if I could get some pointers.