Receivables - Invoicing rules and accounting rules

Lets learn some quick concepts of Invoicing rules and Accounting rules in Oracle Receivables

So, there are 2 rules  :

1. Invoicing rules - These are applied on the invoice header level. They are of 2 types - bills in arears and bills in advance. 

Bills in arears - Recognize the receivable at the end of the revenue recognition.

accounting entry - unbilled receivable Dr

                              Revenue Cr

                              Receivable Dr

                              unbilled receivable Cr

Bills in advance - Recognize the receivable at the start of the revenue recognition.

accounting entry - Receivable Dr

                               Unearned Revenue Cr

                               

                               Unearned revenue Cr

                               Revenue Dr

2. Accounting rules - Applied at the line level. Could be applied at each line separately. 

Types - Fixed, Variable, Duration, daily revenue all periods and daily revenue partial periods.