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Other Revenue Issues

Funding and Multiple Customers or Multiple Agreements

When you generate revenue, Oracle Projects determines which agreement an event or revenue item is accrued and billed against. Each time Oracle Projects finds available funding for an expenditure item or an event, it creates a revenue item and updates the funding amount billed on that agreement.

Expenditure Items and Events

Oracle Projects creates revenue by searching for agreements that fund the project against which to accrue potential revenue. When Oracle Projects finds an agreement with against which to accrue revenue, it updates the amount accrued on the appropriate funding record.

Whenever an agreement with acceptable funding is found, Oracle Projects creates a draft revenue against that agreement. The event revenue is split among the customers on the project according to their bill split percentage.

If Oracle Projects cannot find enough funding for the full potential revenue amount, it creates partial revenue for the expenditure items.

If multiple agreements fund the revenue generated for an expenditure item or event, Oracle Projects creates a revenue distribution line for each project (or task) and agreement funding the revenue. Therefore, a single expenditure item or event may have more than one revenue distribution line, which are billed on separate invoices.

Note: Projects that use cost-to-cost revenue accrual can only be funded by one agreement.

Hard Limits and Partial Accrual

Hard Limits

You specify a hard limit for an agreement to limit revenue accrual and billing of a project funded by that agreement to the amount funded. You specify whether to use hard limits in the Agreement window. See: Entering Agreements.

Events

Oracle Projects accrues revenue for an event only if enough funding is available to accrue the full event amount.

Expenditure Items and Partial Accruals

Unlike events, for which revenue can be accrued only if funding exists for the full amount of the event, you can partially accrue expenditure items against agreements with hard limit funding. You can accrue expenditure item revenue up to hard revenue limits by partially accruing the potential revenue.

If Oracle Projects encounters expenditure items funded by an agreement with a hard revenue limit, and all of the potential revenue cannot be accrued on the agreement, the expenditure items for the current revenue generation run of the project are marked as partially accrued. These partially accrued items can be fully accrued by adding more funding before the next time you generate revenue.

Oracle Projects calculates the proration for partial accruals based on the following formula:

For example, say Task 3.0 is funded with $1,000 from an agreement with a hard limit, and expenditures charged to the task create potential revenue of $6940, which is in excess of $1,000. When revenue is generated for task 3.0, Oracle Projects reaches the revenue limit at $1,000. Oracle Projects creates partially distributed revenue for the task and accrues a portion of each expenditure item's potential revenue as we show below:


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