Creating Revenue Commitments

Important:

The functions discussed in this topic require the Revenue Commitments feature to be enabled.

Before you can create a revenue commitment, a sales order must exist and be approved. That sales order provides the initial data used to populate the revenue commitment. If you choose to recognize revenue for a sales order by using a revenue commitment, the revenue for all lines on that sales order must be recognized using a revenue commitment. A sales order cannot recognize revenue using both revenue commitments and invoices. After you use a revenue commitment to recognize any revenue from a sales order, you cannot change the sales order unless you first delete the revenue commitment.

You can create a revenue commitment:

Directly from the sales order by clicking the Commit Revenue button. See Creating a Revenue Commitment from a Sales Order.
From the Generate Revenue Commitments page. See Using the Generate Revenue Commitment Page.

A revenue commitment is a non-posting transaction. It serves as the placeholder for the revenue recognition schedule that generates the posting revenue recognition journal entries.

Note:

Do not change the customer or project directly on the revenue commitment. To change these values, create a return authorization to reverse the sales order. Then create a revenue commitment reversal to reverse the revenue commitment. After that, create a new sales order with the correct customer or project value. For more information, see Creating Revenue Commitment Reversals.

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