Enabling Deferred Revenue Bookings

← Bookkeeping Data Creation

JustOn Billing & Invoice Management can create booking details for deferred revenue, distributing the revenue of an invoice to one or multiple future booking periods.

Summary

For JustOn Billing & Invoice Management to generate a booking detail for the deferred revenue, you must create a corresponding Collective Accounts custom setting of the type Deferred, and where the field Account specifies the dedicated deferred revenue account number (like for the German SKR 03, for example, 0990 "Passive Rechnungsabgrenzung").

Assuming two applicable tax rates (19% and 7%), the following settings are required:

Object	Field	Value
Global Settings	Create Bookkeeping Data	true
Assignment Rules - G/L Account	G/L Account	8400
	Tax Code	DE_19
	Business Entity	business entity name
Assignment Rules - G/L Account	G/L Account	8300
	Tax Code	DE_7
	Business Entity	business entity name
Collective Account	Booking Account	1776
	Tax Code	DE_19
	Type	Tax
Collective Account	Booking Account	1771
	Tax Code	DE_7
	Type	Tax
Collective Account	Booking Account	0990
	Type	Deferred
Account | Invoice	ON_DebtorNo| DebtorNo	debtor account number
Invoice Line Item	Revenue Recognition Rule	Booking Month| Calendar Year

Enabling the bookkeeping data generation for deferred revenue generally involves the following configuration steps:

• Activating the booking detail creation
• Enabling the booking account allocation
• Setting the relevant revenue recognition rule

Activating Booking Data Creation

In order to globally enable the creation of bookkeeping data, the feature must be activated in the global settings.

1. Click to enter Setup, then open Custom Settings.

   In Salesforce Lightning, navigate to Custom Code > Custom Settings.

   In Salesforce Classic, navigate to Develop > Custom Settings.

2. Click Manage in the row of Global Settings.

3. Click Edit in the Default row.
4. Select the checkbox Create Bookkeeping Data.

5. Click Save.

   Once enabled, the bookkeeping data is generated automatically upon invoice finalization.

Info

Once created, the booking details can no longer be modified or deleted. In case of errors, however, you can regenerate booking details for invoices.

Enabling Booking Accounts

To provide for the correct booking account allocation, you create dedicated G/L Account Assignment Rules and Collective Account settings.

Booking revenue and taxes including deferred revenue usually requires the following booking accounts:

Account name	Account no. SKR 03	Configuration
Revenue 19%	8400	G/L Account
Taxes 19%	1776	Collective Account
Revenue 7%	8300	G/L Account
Taxes 7%	1771	Collective Account
Deferred	0990	Collective Account
Debtor		Debtor number

Remember that depending on your accounting system, the booking account numbers may differ.

1. Create Assignment Rules - G/L Account settings to book the revenue.

   To cover the minimum use cases for revenues with 19% VAT and for revenues with 7% VAT, you need at least the following settings:

   Name	G/L Account	Tax Code	Business Entity
   Revenue 19%	8400	DE_19	business entity name
   Revenue 7%	8300	DE_7	business entity name

   For details, see Configuring G/L Account.

2. Create Collective Account settings for the tax bookings.

   To cover the outlined use cases, you need at least the following settings:

   Name	Booking Account	Tax Code	Type
   Tax 19%	1776	DE_19	Tax
   Tax 7%	1771	DE_7	Tax

   Depending on your requirements, your Collective Account settings may, in addition, need to define the Business Entity.

   For details, see Configuring Collective Accounts.

3. Create a Collective Account setting for the deferred revenue bookings.

   To cover the outlined use cases, you need at least this setting:

   Name	Booking Account	Business Partner Account	Type
   Deferred	0990	debtor number	Deferred

   Depending on your requirements, your Collective Account setting may, in addition, need to define the Business Entity.

   Account debtor no for deferred revenue

   By default, JustOn Billing & Invoice Management fills the field Contra Booking Account in booking details for deferred revenue using the value of the Business Partner Account field of the corresponding Collective Accounts custom setting record. Your business use case, however, may require to use the value of the custom field ON_DebtorNo on the account instead. To support this scenario, activate the corresponding global setting Use Debtor No for Deferred Revenue.

   1. Click to enter Setup, then open Custom Settings.

      In Salesforce Lightning, navigate to Custom Code > Custom Settings.

      In Salesforce Classic, navigate to Develop > Custom Settings.

   2. Click Manage in the row of Global Settings.

   3. Click Edit in the Default row.
   4. Select the checkbox Use Debtor No for Deferred Revenue.
   5. Click Save.

   For details, see Configuring Collective Accounts.

4. Enable the debtor account number.

   Depending on your requirements, the way to define the debtor account number differs:

   Customer-specific debtor numberDebtor groups

   For customer-specific debtor numbers, you use the Account field ON_DebtorNo.

   1. Navigate to the fields list of the Account object.

   2. Create the following new field.

      API Name	Data Type	Description	Example Values
      ON_DebtorNo	Text (255) or Formula	Specifies the contra account number for booking details. If configured as a formula, it can determine the value based on other fields.	12345 AnotherField__c

   To support collective debtors (or debtor groups), you use the Invoice field DebtorNo.

   Using a collective debtor number via the Invoice field DebtorNo does not require a collective account setting. Instead, you just set the intended booking account number to be transferred to the booking detail.

   1. Navigate to the fields list of the Invoice object.

   2. Create the following new field.

      API Name	Data Type	Description	Example Values
      DebtorNo	Text (255) or Formula	Specifies the contra account number for booking details. If configured as a formula, it can determine the value based on other fields.	12345 AnotherField__c

   If the field is configured as a text, you can use the ON field mechanism to have it set using values from invoice source objects. Be aware, however, that if the field is configured as a formula, the ON field mechanism will not overwrite the DebtorNo value.

   Info

   When creating booking details, the Invoice field DebtorNo takes precedence over the Account field ON_DebtorNo. If the Invoice field DebtorNo is empty or does not exist, JustOn Billing & Invoice Management uses the Account field ON_DebtorNo to set Contra Booking Account in the booking detail.

Setting Revenue Recognition Rule

JustOn Billing & Invoice Management writes deferred revenue bookings according to the revenue recognition rule set in the invoice line item field Recognition Rule.

The ON field mechanism is a likely option for having the revenue recognition rule specified automatically on the invoice line item when generating invoices. Alternatively, you can use Salesforce flows or other automation tools.

To make use of the ON field mechanism, you set the field ON_RecognitionRule on the invoice line item source object:

1. Navigate to the fields list of the corresponding object.

2. Create the following new field.

   API Name	Data Type	Description
   ON_RecognitionRule	Text (255) Formula (Text) Picklist	Specifies the revenue recognition rule to be applied, is copied to the invoice line item during the invoice run. Common options include Booking Month or Calendar Year.

   For help about creating fields, see Managing Object Fields.