Terminate a revenue recognition schedule—AR or Order Entry

You can terminate any revenue recognition schedule that has a Revenue posting status of In progress or Not started. You can terminate a schedule from the revenue recognition schedule itself or you can terminate one or more schedules using the Manage Revenue Schedules page.

What is the impact to the GL when a revenue recognition schedule is terminated?

The impact to the GL depends on the transaction definition Contains the accounting rules, workflow settings, security settings, and other characteristics for a transaction. Transaction definitions are maintained by admins. for the source transaction (the transaction for which the revenue recognition schedule was terminated).

• If the transaction definition has Transaction posting= Accounts Receivable: The terminate process creates an AR Adjustment (Type = Credit Memo) for the remaining unrecognized revenue. Intacct uses the GL accounts from the source transaction for the AR adjustment. The AR adjustment creates the reversing journal entry as in the following example.

  Reversing journal entry example

  Account Type	GL Account	Source of GL Account	Amount
  Debit	Deferred Revenue	The Credit account from the source transaction	Total amount terminated from the revenue recognition schedule
  Credit	Accounts Receivable	The Debit account from the source transaction	Total amount terminated from the revenue recognition schedule

• If the transaction definition has Transaction posting = General Ledger: The terminate process does not create an adjustment. You must manually adjust the GL to reverse the unrecognized revenue.

  For example, if you're using a revenue recognition activation document to separate revenue recognition and billing, you need to manually adjust the GL after terminating a revenue recognition schedule associated with a revenue recognition activation document as a revenue recognition activation document is set to post directly to the GL.

Terminate a revenue recognition schedule from the source transaction

1. Open the applicable source transaction (for example, the revenue activation transaction), select the applicable line item in the Entries section, select Show details, and select View schedule.
2. In the Revenue Recognition Schedule window, select Terminate.

   A Terminate Revenue Recognition dialog box appears.

3. Select a termination option.
   • All: Sets the status for the remaining Open entries to Terminated. This revenue cannot be recognized.
   • Any scheduled after the next posting date: Intacct leaves one Open row on the schedule and terminates the rest of the schedule.

     For example, suppose that 1,000.00 is scheduled to be posted on the next scheduled posting date of March 31. In this scenario, the system leaves the 1,000.00 scheduled to post on March 31 Open and terminates the remaining schedule.

   • Any after specified date: Terminates the schedule as of the date you choose. If the date you select results in a partial period, a pro-rated amount will be posted based on an Intacct-calculated percentage.

     For example, say that the revenue recognition schedule is set to recognize 1,000.00 at the end of each month. On April 8, you choose to terminate the schedule as of April 15. In this scenario, Intacct calculates the percentage of the period to use for the recognition (15 days divided by 30 days = 50%), recognizes a portion of April's revenue (50% of 1,000.00 = 500.00), and terminates the remaining schedule.

   The Any after specified date option is available only for revenue recognition schedules that post at the end of the month. If the revenue recognition template you're using does not have the Posting day set to End of Period, the Any after specified date option will not be available.

4. Optionally, use the Category dropdown list to select a reason for the termination and enter any associated information in the Memo field.
5. Select Save.

   The applicable entries now have a status of Terminated.

6. Verify the applicable account journal entries and make any adjustments necessary to account for the terminated revenue.

Terminate a revenue recognition schedule from the Manage revenue schedules page

1. Go to Accounts Receivable or Order Entry> All > Revenue recognition > Manage revenue schedules.
2. In the Action options field, select Terminate, define other filter criteria as desired, and select Preview.

   The Filtered Schedules section displays only transaction items with associated revenue recognition schedules that you can terminate. A Terminate button also appears in the page header.

3. Select the checkbox to the left of the items associated with revenue recognition schedules that you want to terminate or select the checkbox in the Select column header to select all items.

4. Optionally, in the Terminate details section, use the Category dropdown list to select a reason for the termination and enter any associated information in the Memo field..

   This information will apply to all selected items.

5. Select Terminate.

   If the action was successful, a green bar and check mark appear in the header and indicates the number of schedules that have a schedule status of Terminated.

   If the action wasn’t successful, a red bar and x appear in the header and indicates the number of schedules affected.

6. If there were errors, select Fix these schedules to view source transactions and line item numbers to use to investigate the errors.