A user notices that the system does not pull the Classifications (Class, Department, Location) set on the Sales Order into the Revenue Arrangement. This issue can lead to missing or incorrect classifications on Revenue Elements and, subsequently, on Revenue Recognition Journal Entries.
The behavior depends on where the Classifications are set and how they are displayed on the Sales Order. Here are the different scenarios and their solutions:
- Header Level Classifications Without Line-Level Columns:
- Scenario: The Classification (Class, Department, Location) is set at the header level of the Sales Order, and the corresponding columns are not displayed on the item lines.
- Behavior: In this case, the Revenue Element will derive the Classifications from the header level, ensuring that the classifications are pulled correctly into the Revenue Arrangement.
- Header Level Classifications With Line-Level Columns Displayed:
- Scenario: The Classification (Class, Department, Location) is set at the header level of the Sales Order, but the columns are displayed on the item lines and left blank.
- Behavior: If the Classification columns are displayed on the item lines and left blank, the Revenue Element will derive these classifications as “blank.” This means that the item lines override the header-level settings with blank values.
- Solution: Ensure that the Class, Department, and Location are filled in at the item line level if the columns are displayed. Alternatively, hide the columns if you intend to use the header-level classifications.
- Blank Classifications on Revenue Element:
- Scenario: If the Revenue Element shows blank Classifications, it means the system is pulling “blank” values from the item lines.
- Behavior: Blank Classifications on the Revenue Element will lead to blank Classifications on the Revenue Recognition Journal Entry as well.
- Solution: Verify that the Classifications are correctly set either at the header level without item line columns displayed, or directly on the item lines if the columns are displayed.
Steps to Resolve:
- Check Sales Order Configuration:
- Go to the Sales Order and review how the Class, Department, and Location fields are set.
- Ensure Correct Settings:
- Header Level Only: If using header-level settings, make sure the Classification columns are not displayed on the item lines.
- Line Level: If the columns are displayed on the item lines, ensure that they are filled in with the appropriate Classifications.
- Verify Revenue Elements:
- After making the necessary adjustments, verify that the Revenue Elements now show the correct Classifications.
- Test Revenue Recognition:
- Create a sample Sales Order, ensure the settings are correct, and process it to see if the Revenue Arrangement and Revenue Recognition Journal Entries now reflect the correct Classifications.
By following these guidelines, users can ensure that the Classifications from Sales Orders are correctly pulled into the Revenue Arrangement and reflected accurately in Revenue Recognition Journal Entries. This helps maintain accurate financial reporting and classification throughout the revenue recognition process.