In this topic, you will learn how to better understand revenue plan and event statuses.
Steps:
This diagram illustrates the flow of revenue plan status values.
Step 1The Pending status appears by default when you define a new revenue plan. When you save a revenue plan in Pending status, the system does not perform edit checking. This enables you to work on a revenue plan, save your work, and return to that revenue plan to finish your work at a later date. When you have completed entering data for a revenue plan, you manually set the status field to Ready.
Step 2If you are using templates to automate your revenue plan process and you selected the Activate Contract option on the template, the system automatically sets the revenue plan status to Ready when the contract status is changed to active.
Step 3You can manually move the status of a revenue plan from Ready to Pending. The system does not perform edit checking for this type of status change.
Step 4You can select the Ready status for a revenue plan when the contract has an Active status. If all required conditions are met, the revenue plan status becomes Ready, and one of the Revenue Recognition Application Engines can process this revenue plan.
Step 5If you are using templates to automate your revenue plan process and you selected the Activate Contract option on the template, the system automatically sets the revenue plan status to Ready when the contract status is changed to active.
Step 6When you change the revenue plan status to Ready and click the Save button, the system performs the following edit checks:
• The contract status is mapped to a processing status of Active. This ensures that the contract is fully captured, pricing is fully allocated, and all accounting distributions are defined and valid.
• At least one contract line is attached to the revenue plan.
• For Milestone and Apportionment method revenue plans, a minimum of one event is defined for the revenue plan and the sum of the events equals the plan amount.
The same edits apply when the system automatically readies the revenue plan upon contract activation through the revenue template option.
Step 7Once revenue recognition has begun, the Revenue Recognition Application Engine changes the status of the plan to In Progress.
At this point, the revenue plan status becomes display only and the system restricts revenue plan changes to events that have not yet been processed. Plans with a revenue recognition method of Percent Complete have only one event in this state.
Step 8For As Incurred method revenue plans without events, the system automatically changes the plan status from Ready to In Progress the first time that it processes billable lines for a project that is assigned to a contract line associated with that revenue plan. You cannot manually change the status to In Progress.
Step 9The system sets a revenue plan to an Action Required status if a contract line amendment is processed or an event is reversed. You must review the event inserted by the amendment or reversal process and re-allocate the plan to account for the amendment or reversal.
After you have reviewed the revenue plan and made any necessary changes, click the Reviewed button to indicate to the system that the plan is ready to continue with processing. The system validates that 100 percent of the revenue plan amount is defined on events and changes the status from Action Required to In Progress.
Step 10When you create an amendment for a revenue plan that has a status of complete, the system sets the billing plan status to In Progress instead of Action Required.
Step 11When you initiate the reversal of a revenue plan, the system changes the status of the revenue plan to Reversal In Progress.
Step 12You can reverse a revenue plan from the Review Revenue page or the Contract Reversal page. When you first reverse a plan, the plan receives a status of Reversal in Progress. When all events have been reversed, the system updates the plan status to Reversed. You cannot reopen reversed plans.
Step 13Pending and Ready revenue recognition events do not get reversed, so those events may appear on the revenue plan when the system sets the plan status to Reversed.
Step 14You can change a revenue plan status to Cancelled from a status of Pending or Reversed. Cancellation may occur due to the entire contract being terminated or superseded, a contract line being dropped, or to consolidate contract lines onto another revenue plan. A revenue plan cannot be reopened if it is cancelled.
Step 15For milestone, apportionment, and percent complete revenue recognition methods (amount-based revenue), once all revenue plan events are complete and total 100 percent of the plan’s amount, the system updates the plan to Completed. This indicates that all revenue for this plan has been distributed.
Step 16For as incurred revenue recognition (rate-based revenue), you must manually select the Completed status because the system does not know when the last transactions were accumulated in PeopleSoft Project Costing and processed through to revenue recognition. If your as incurred revenue plan has events associated with it, you must wait until all events are complete before you can select the Completed status.
Step 17The revenue plan event status acts as the final gatekeeper to determine if the event can be released. The system will not mark a revenue plan complete until all associated events are complete (booked).
There are seven revenue plan event statuses. This diagram illustrates the flow between event status values.
Step 18The Pending status appears by default when you define a new revenue plan event. Revenue plan events with this status are not subject to system edit checking.
Step 19Setting an event to Ready makes it available for processing. The system sets apportionment and percent complete events to a status of Ready by default.
Step 20The process of changing a revenue plan event status from Pending to Ready differs based on the revenue recognition method you are using. The system sets the status of apportionment and percent complete events to Ready upon creation. For milestone and as incurred revenue recognition methods, you can change an event status to Ready from the Review Revenue - Events page. From this page you can view all events matching your search criteria, and then set individual events to Ready (or back to Pending).
Step 21For percent complete revenue plans, access the Revenue Plan page, where you can manually update the total percent complete as of the date to which you are making the entry. The system uses this entry to generate the event on the revenue plan. As a result, you must make this entry on the revenue plan itself.
Step 22The In Progress status appears automatically once the revenue recognition event has been processed by the system using the Revenue Recognition Application Engine process. Events marked with the In Progress status are overlooked by future revenue processes.
Step 23The system sets the Reversal Initiated status when you select the Reversal Initiated option and click the Update Event Status button on the Review Revenue - Events page. Selecting this option triggers the system to generate a reversal for the selected revenue plan events the next time that the Amount-based Revenue process (CA_LOAD_GL1) is run.
Step 24At the same time that the system sets the event status to Reversal Initiated, the system also changes the revenue plan status from In Progress or Completed to Action Required. This indicates that you need to manage the revenue plan events to ensure that you update or define events for event-level reversal amounts.
Step 25The system sets the Reversal In Progress status when the application engine begins the reversal generation process.
Step 26The Reversed status appears when you have completed the revenue plan event reversal. You cannot reuse a reversed event (in other words, you cannot set the status back to Pending or Ready). Instead, you must add new events to the revenue plan.
You cannot reverse events for as incurred revenue plans.
Step 27The Completed status appears for both amount-based and rate-based revenue when you run the Contracts Load Update Application Engine (CA_LOAD_UPD) process.
Step 28Congratulations, you have successfully gained an understanding of revenue plan and event statuses.