![\"TenthPlanet-iDempiere-RevenueRecognition-processFlow\"](\"https:\/\/tenthplanet.in\/idempiere\/wp-content\/uploads\/sites\/13\/2026\/07\/TenthPlanet-iDempiere-RevenueRecognition-processFlow.png\" "\\"\\"")
<\/figure>\n\n\n\nBusiness Rules<\/strong><\/h2>\n\n\n\n\n- A Revenue Recognition Plan is created only during invoice posting, not on save or complete.<\/li>\n\n\n\n
- Only one Plan is created per Invoice Line and Accounting Schema.<\/li>\n\n\n\n
- Plan Total Amount is taken from the posted accounting balance.<\/li>\n\n\n\n
- Service-Based recognition creates one Run per configured service line.<\/li>\n\n\n\n
- Service-Based recognized amount equals Plan Total multiplied by the service percentage.<\/li>\n\n\n\n
- Time-Based recognition creates one Run per configured period.<\/li>\n\n\n\n
- Time-Based recognized amount equals Plan Total divided by the configured periods.<\/li>\n\n\n\n
- The last Run absorbs any rounding difference in both recognition methods.<\/li>\n\n\n\n
- The Revenue Recognition Process only recognizes Runs not yet linked to a GL Journal.<\/li>\n<\/ul>\n\n\n\n
Prerequisites<\/strong><\/h2>\n\n\n\n\n- Revenue Recognition definition created as Service-Based or Time-Based.<\/li>\n\n\n\n
- Revenue Recognition assigned on the Product\u2019s Accounting tab.<\/li>\n\n\n\n
- Accounting Schema, Unearned Revenue, and Product Revenue accounts configured.<\/li>\n\n\n\n
- Sales Order and AR Invoice process configured for the product.<\/li>\n<\/ul>\n\n\n\n
Configuration Steps<\/strong><\/h2>\n\n\n\nStep 1: Create a Revenue Recognition Definition<\/strong><\/h3>\n\n\n\nThis defines the header record and selects the recognition method, Service-Based or Time-Based.<\/p>\n\n\n\n
Navigate to Partner Relations \u2192 Revenue Recognition, click New, enter a Name and Description, and check Time based only if using time-based recognition.<\/p>\n\n\n\nField<\/strong><\/td>Sample Value<\/strong><\/td>Purpose<\/strong><\/td><\/tr><\/thead>Name<\/td> ERP Implementation Recognition<\/td> Identifies a Service-Based recognition definition<\/td><\/tr> Name<\/td> ERP Annual Subscription Recognition<\/td> Identifies a Time-Based recognition definition<\/td><\/tr> Time based<\/td> Unchecked \/ Checked<\/td> Selects Service-Based (unchecked) or Time-Based (checked) recognition<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nStep 2: Configure Service-Based Recognition<\/strong><\/h3>\n\n\n\nFor Service-Based definitions, the Service tab defines milestones and the percentage of revenue recognized at each stage.<\/p>\n\n\n\n
Open the Service tab, add a line for each milestone with Line No, Percent, and Description; the percentages across all lines should total 100%.<\/p>\n\n\n\nLine No<\/strong><\/td>Percent<\/strong><\/td>Description<\/strong><\/td><\/tr><\/thead>10<\/td> 20.00<\/td> ERP Requirement Analysis<\/td><\/tr> 20<\/td> 40.00<\/td> ERP Implementation & Customization<\/td><\/tr> 30<\/td> 20.00<\/td> User Training<\/td><\/tr> 40<\/td> 20.00<\/td> Go-Live Support<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n![\"TenthPlanet-iDempiere-PartnerRelations-RevenueRecognition\"](\"https:\/\/tenthplanet.in\/idempiere\/wp-content\/uploads\/sites\/13\/2026\/07\/TenthPlanet-iDempiere-PartnerRelations-RevenueRecognition.png\" "\\"\\"")
<\/figure>\n\n\n\nStep 3: Configure Time-Based Recognition<\/strong><\/h3>\n\n\n\nFor Time-Based definitions, frequency and period fields determine how many equal Runs are generated.<\/p>\n\n\n\n
Check Time based, select the Recognition frequency, enter Number of Months, and set Fixed recognition day to 0 for equal monthly distribution.<\/p>\n\n\n\nField<\/strong><\/td>Sample Value<\/strong><\/td>Purpose<\/strong><\/td><\/tr><\/thead>Recognition frequency<\/td> Month<\/td> Interval between each Revenue Recognition Run<\/td><\/tr> Number of Months<\/td> 12<\/td> Total number of Runs to generate<\/td><\/tr> Fixed recognition day<\/td> 0<\/td> Distributes the amount equally with no proration<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n![\"TenthPlanet-iDempiere-PartnerRelations-RevenueRecognition-1\"](\"https:\/\/tenthplanet.in\/idempiere\/wp-content\/uploads\/sites\/13\/2026\/07\/TenthPlanet-iDempiere-PartnerRelations-RevenueRecognition1.png\" "\\"\\"")
<\/figure>\n\n\n\nStep 4: Assign Revenue Recognition to the Product<\/strong><\/h3>\n\n\n\nOnly products with an assigned Revenue Recognition definition trigger plan creation during invoice posting.<\/p>\n\n\n\n
Open the Product window \u2192 Accounting tab, select the Revenue Recognition definition, and save.<\/p>\n\n\n\nField<\/strong><\/td>Sample Value<\/strong><\/td>Purpose<\/strong><\/td><\/tr><\/thead>Revenue Recognition<\/td> ERP Annual Subscription Recognition<\/td> Links the Product to the recognition schedule<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nStep 5: Create and Post the Invoice to Generate the Plan<\/strong><\/h3>\n\n\n\nPosting is the trigger point; completing the invoice alone does not create a Revenue Recognition Plan.<\/p>\n\n\n\n
Create the Sales Order, generate the AR Invoice, Complete it, then Post it. The Revenue Recognition Plan and its Runs are created automatically during posting.<\/p>\n\n\n\nField<\/strong><\/td>Sample Value<\/strong><\/td>Purpose<\/strong><\/td><\/tr><\/thead>Invoice Line<\/td> 100029_07\/22\/2026_141600.00_10_120000<\/td> Source line the Plan is generated from<\/td><\/tr> Total Amount<\/td> -120,000.00<\/td> Posted accounting balance carried into the Plan<\/td><\/tr> Unearned Revenue<\/td> CDC-UNEARNEDREVENUE-1000004-1000048-_-_<\/td> Account holding revenue until it is recognized<\/td><\/tr> Product Revenue<\/td> CDC-P_REVENUE-1000004-1000048-_-_<\/td> Account credited when revenue is recognized<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n![\"TenthPlanet-iDempiere-PartnerRelations-RevenueRecognition-3\"](\"https:\/\/tenthplanet.in\/idempiere\/wp-content\/uploads\/sites\/13\/2026\/07\/TenthPlanet-iDempiere-PartnerRelations-RevenueRecognition3-1.png\" "\\"\\"")
<\/figure>\n\n\n\nStep 6: Verify the Runs and Execute the Revenue Recognition Process<\/strong><\/h3>\n\n\n\nThis confirms the generated Runs match the configured method, then recognizes revenue by creating the GL Journal.<\/p>\n\n\n\n
Review the Revenue Recognition Run tab for the expected schedule, then run the Revenue Recognition Process with an Accounting Date to generate the GL Journal for eligible Runs.<\/p>\n\n\n\nRecognition Date<\/strong><\/td>Recognized Amount<\/strong><\/td>Method<\/strong><\/td><\/tr><\/thead>07\/22\/2026<\/td> -10,000.00<\/td> Time-Based, equal monthly amount (12 Runs of \u20b9120,000 total)<\/td><\/tr> Service milestone runs<\/td> -82,000.00 \/ -164,000.00 \/ -82,000.00 \/ -82,000.00<\/td> Service-Based, percentage of \u20b9410,000 total per milestone<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n![\"TenthPlanet-iDempiere-PartnerRelations-RevenueRecognition-4\"](\"https:\/\/tenthplanet.in\/idempiere\/wp-content\/uploads\/sites\/13\/2026\/07\/TenthPlanet-iDempiere-PartnerRelations-RevenueRecognition4-1.png\" "\\"\\"")
<\/figure>\n\n\n\nCommon Issues and Resolutions<\/strong><\/h2>\n\n\n\nIssue<\/strong><\/td>Cause<\/strong><\/td>Resolution<\/strong><\/td><\/tr><\/thead>Plan not created<\/td> Product has no Revenue Recognition assigned<\/td> Assign a Revenue Recognition definition to the Product\u2019s Accounting tab<\/td><\/tr> Plan not created<\/td> Invoice was completed but not posted<\/td> Post the invoice; posting alone triggers plan creation<\/td><\/tr> Plan not created<\/td> Invoice Line has no Revenue Recognition<\/td> Confirm the invoice line\u2019s product carries the Revenue Recognition assignment<\/td><\/tr> No GL Journal generated<\/td> Revenue Recognition Process not executed<\/td> Run the Revenue Recognition Process for eligible Runs<\/td><\/tr> Revenue already recognized<\/td> Run already linked to a GL Journal<\/td> Use a new Accounting Date or verify the Run\u2019s Journal reference<\/td><\/tr> Service percentages don\u2019t total 100%<\/td> Service lines misconfigured<\/td> Review the Service tab and adjust percentages to total 100%<\/td><\/tr> Uneven period amounts<\/td> Rounding difference not aligned to the last Run<\/td> Expected behavior; the last Run absorbs rounding differences<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nNext Steps<\/strong><\/h2>\n\n\n\n\n- Execute the Revenue Recognition Process periodically as Runs become eligible.<\/li>\n\n\n\n
- Review generated GL Journals for Unearned Revenue and Product Revenue postings.<\/li>\n\n\n\n
- Monitor the Revenue Recognition Run tab for upcoming recognition dates.<\/li>\n\n\n\n
- Reuse the Revenue Recognition definition for similar retail service or subscription products.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"
Revenue Recognition is the iDempiere feature that defers revenue from an invoice into Unearned Revenue and releases it to Product […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,87],"tags":[],"class_list":["post-21607","post","type-post","status-publish","format-standard","hentry","category-idempiere-product","category-idempiere-partner-relations"],"_links":{"self":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts\/21607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/comments?post=21607"}],"version-history":[{"count":3,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts\/21607\/revisions"}],"predecessor-version":[{"id":28118,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts\/21607\/revisions\/28118"}],"wp:attachment":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/media?parent=21607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/categories?post=21607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/tags?post=21607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Prerequisites<\/strong><\/h2>\n\n\n\n\n- Revenue Recognition definition created as Service-Based or Time-Based.<\/li>\n\n\n\n
- Revenue Recognition assigned on the Product\u2019s Accounting tab.<\/li>\n\n\n\n
- Accounting Schema, Unearned Revenue, and Product Revenue accounts configured.<\/li>\n\n\n\n
- Sales Order and AR Invoice process configured for the product.<\/li>\n<\/ul>\n\n\n\n
Configuration Steps<\/strong><\/h2>\n\n\n\nStep 1: Create a Revenue Recognition Definition<\/strong><\/h3>\n\n\n\nThis defines the header record and selects the recognition method, Service-Based or Time-Based.<\/p>\n\n\n\n
Navigate to Partner Relations \u2192 Revenue Recognition, click New, enter a Name and Description, and check Time based only if using time-based recognition.<\/p>\n\n\n\nField<\/strong><\/td>Sample Value<\/strong><\/td>Purpose<\/strong><\/td><\/tr><\/thead>Name<\/td> ERP Implementation Recognition<\/td> Identifies a Service-Based recognition definition<\/td><\/tr> Name<\/td> ERP Annual Subscription Recognition<\/td> Identifies a Time-Based recognition definition<\/td><\/tr> Time based<\/td> Unchecked \/ Checked<\/td> Selects Service-Based (unchecked) or Time-Based (checked) recognition<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nStep 2: Configure Service-Based Recognition<\/strong><\/h3>\n\n\n\nFor Service-Based definitions, the Service tab defines milestones and the percentage of revenue recognized at each stage.<\/p>\n\n\n\n
Open the Service tab, add a line for each milestone with Line No, Percent, and Description; the percentages across all lines should total 100%.<\/p>\n\n\n\nLine No<\/strong><\/td>Percent<\/strong><\/td>Description<\/strong><\/td><\/tr><\/thead>10<\/td> 20.00<\/td> ERP Requirement Analysis<\/td><\/tr> 20<\/td> 40.00<\/td> ERP Implementation & Customization<\/td><\/tr> 30<\/td> 20.00<\/td> User Training<\/td><\/tr> 40<\/td> 20.00<\/td> Go-Live Support<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<\/figure>\n\n\n\nStep 3: Configure Time-Based Recognition<\/strong><\/h3>\n\n\n\nFor Time-Based definitions, frequency and period fields determine how many equal Runs are generated.<\/p>\n\n\n\n
Check Time based, select the Recognition frequency, enter Number of Months, and set Fixed recognition day to 0 for equal monthly distribution.<\/p>\n\n\n\nField<\/strong><\/td>Sample Value<\/strong><\/td>Purpose<\/strong><\/td><\/tr><\/thead>Recognition frequency<\/td> Month<\/td> Interval between each Revenue Recognition Run<\/td><\/tr> Number of Months<\/td> 12<\/td> Total number of Runs to generate<\/td><\/tr> Fixed recognition day<\/td> 0<\/td> Distributes the amount equally with no proration<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<\/figure>\n\n\n\nStep 4: Assign Revenue Recognition to the Product<\/strong><\/h3>\n\n\n\nOnly products with an assigned Revenue Recognition definition trigger plan creation during invoice posting.<\/p>\n\n\n\n
Open the Product window \u2192 Accounting tab, select the Revenue Recognition definition, and save.<\/p>\n\n\n\nField<\/strong><\/td>Sample Value<\/strong><\/td>Purpose<\/strong><\/td><\/tr><\/thead>Revenue Recognition<\/td> ERP Annual Subscription Recognition<\/td> Links the Product to the recognition schedule<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nStep 5: Create and Post the Invoice to Generate the Plan<\/strong><\/h3>\n\n\n\nPosting is the trigger point; completing the invoice alone does not create a Revenue Recognition Plan.<\/p>\n\n\n\n
Create the Sales Order, generate the AR Invoice, Complete it, then Post it. The Revenue Recognition Plan and its Runs are created automatically during posting.<\/p>\n\n\n\nField<\/strong><\/td>Sample Value<\/strong><\/td>Purpose<\/strong><\/td><\/tr><\/thead>Invoice Line<\/td> 100029_07\/22\/2026_141600.00_10_120000<\/td> Source line the Plan is generated from<\/td><\/tr> Total Amount<\/td> -120,000.00<\/td> Posted accounting balance carried into the Plan<\/td><\/tr> Unearned Revenue<\/td> CDC-UNEARNEDREVENUE-1000004-1000048-_-_<\/td> Account holding revenue until it is recognized<\/td><\/tr> Product Revenue<\/td> CDC-P_REVENUE-1000004-1000048-_-_<\/td> Account credited when revenue is recognized<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<\/figure>\n\n\n\nStep 6: Verify the Runs and Execute the Revenue Recognition Process<\/strong><\/h3>\n\n\n\nThis confirms the generated Runs match the configured method, then recognizes revenue by creating the GL Journal.<\/p>\n\n\n\n
Review the Revenue Recognition Run tab for the expected schedule, then run the Revenue Recognition Process with an Accounting Date to generate the GL Journal for eligible Runs.<\/p>\n\n\n\nRecognition Date<\/strong><\/td>Recognized Amount<\/strong><\/td>Method<\/strong><\/td><\/tr><\/thead>07\/22\/2026<\/td> -10,000.00<\/td> Time-Based, equal monthly amount (12 Runs of \u20b9120,000 total)<\/td><\/tr> Service milestone runs<\/td> -82,000.00 \/ -164,000.00 \/ -82,000.00 \/ -82,000.00<\/td> Service-Based, percentage of \u20b9410,000 total per milestone<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<\/figure>\n\n\n\nCommon Issues and Resolutions<\/strong><\/h2>\n\n\n\nIssue<\/strong><\/td>Cause<\/strong><\/td>Resolution<\/strong><\/td><\/tr><\/thead>Plan not created<\/td> Product has no Revenue Recognition assigned<\/td> Assign a Revenue Recognition definition to the Product\u2019s Accounting tab<\/td><\/tr> Plan not created<\/td> Invoice was completed but not posted<\/td> Post the invoice; posting alone triggers plan creation<\/td><\/tr> Plan not created<\/td> Invoice Line has no Revenue Recognition<\/td> Confirm the invoice line\u2019s product carries the Revenue Recognition assignment<\/td><\/tr> No GL Journal generated<\/td> Revenue Recognition Process not executed<\/td> Run the Revenue Recognition Process for eligible Runs<\/td><\/tr> Revenue already recognized<\/td> Run already linked to a GL Journal<\/td> Use a new Accounting Date or verify the Run\u2019s Journal reference<\/td><\/tr> Service percentages don\u2019t total 100%<\/td> Service lines misconfigured<\/td> Review the Service tab and adjust percentages to total 100%<\/td><\/tr> Uneven period amounts<\/td> Rounding difference not aligned to the last Run<\/td> Expected behavior; the last Run absorbs rounding differences<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nNext Steps<\/strong><\/h2>\n\n\n\n\n- Execute the Revenue Recognition Process periodically as Runs become eligible.<\/li>\n\n\n\n
- Review generated GL Journals for Unearned Revenue and Product Revenue postings.<\/li>\n\n\n\n
- Monitor the Revenue Recognition Run tab for upcoming recognition dates.<\/li>\n\n\n\n
- Reuse the Revenue Recognition definition for similar retail service or subscription products.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"
Revenue Recognition is the iDempiere feature that defers revenue from an invoice into Unearned Revenue and releases it to Product […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,87],"tags":[],"class_list":["post-21607","post","type-post","status-publish","format-standard","hentry","category-idempiere-product","category-idempiere-partner-relations"],"_links":{"self":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts\/21607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/comments?post=21607"}],"version-history":[{"count":3,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts\/21607\/revisions"}],"predecessor-version":[{"id":28118,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts\/21607\/revisions\/28118"}],"wp:attachment":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/media?parent=21607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/categories?post=21607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/tags?post=21607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Configuration Steps<\/strong><\/h2>\n\n\n\nStep 1: Create a Revenue Recognition Definition<\/strong><\/h3>\n\n\n\nThis defines the header record and selects the recognition method, Service-Based or Time-Based.<\/p>\n\n\n\n
Navigate to Partner Relations \u2192 Revenue Recognition, click New, enter a Name and Description, and check Time based only if using time-based recognition.<\/p>\n\n\n\nField<\/strong><\/td>Sample Value<\/strong><\/td>Purpose<\/strong><\/td><\/tr><\/thead>Name<\/td> ERP Implementation Recognition<\/td> Identifies a Service-Based recognition definition<\/td><\/tr> Name<\/td> ERP Annual Subscription Recognition<\/td> Identifies a Time-Based recognition definition<\/td><\/tr> Time based<\/td> Unchecked \/ Checked<\/td> Selects Service-Based (unchecked) or Time-Based (checked) recognition<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nStep 2: Configure Service-Based Recognition<\/strong><\/h3>\n\n\n\nFor Service-Based definitions, the Service tab defines milestones and the percentage of revenue recognized at each stage.<\/p>\n\n\n\n
Open the Service tab, add a line for each milestone with Line No, Percent, and Description; the percentages across all lines should total 100%.<\/p>\n\n\n\nLine No<\/strong><\/td>Percent<\/strong><\/td>Description<\/strong><\/td><\/tr><\/thead>10<\/td> 20.00<\/td> ERP Requirement Analysis<\/td><\/tr> 20<\/td> 40.00<\/td> ERP Implementation & Customization<\/td><\/tr> 30<\/td> 20.00<\/td> User Training<\/td><\/tr> 40<\/td> 20.00<\/td> Go-Live Support<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<\/figure>\n\n\n\nStep 3: Configure Time-Based Recognition<\/strong><\/h3>\n\n\n\nFor Time-Based definitions, frequency and period fields determine how many equal Runs are generated.<\/p>\n\n\n\n
Check Time based, select the Recognition frequency, enter Number of Months, and set Fixed recognition day to 0 for equal monthly distribution.<\/p>\n\n\n\nField<\/strong><\/td>Sample Value<\/strong><\/td>Purpose<\/strong><\/td><\/tr><\/thead>Recognition frequency<\/td> Month<\/td> Interval between each Revenue Recognition Run<\/td><\/tr> Number of Months<\/td> 12<\/td> Total number of Runs to generate<\/td><\/tr> Fixed recognition day<\/td> 0<\/td> Distributes the amount equally with no proration<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<\/figure>\n\n\n\nStep 4: Assign Revenue Recognition to the Product<\/strong><\/h3>\n\n\n\nOnly products with an assigned Revenue Recognition definition trigger plan creation during invoice posting.<\/p>\n\n\n\n
Open the Product window \u2192 Accounting tab, select the Revenue Recognition definition, and save.<\/p>\n\n\n\nField<\/strong><\/td>Sample Value<\/strong><\/td>Purpose<\/strong><\/td><\/tr><\/thead>Revenue Recognition<\/td> ERP Annual Subscription Recognition<\/td> Links the Product to the recognition schedule<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nStep 5: Create and Post the Invoice to Generate the Plan<\/strong><\/h3>\n\n\n\nPosting is the trigger point; completing the invoice alone does not create a Revenue Recognition Plan.<\/p>\n\n\n\n
Create the Sales Order, generate the AR Invoice, Complete it, then Post it. The Revenue Recognition Plan and its Runs are created automatically during posting.<\/p>\n\n\n\nField<\/strong><\/td>Sample Value<\/strong><\/td>Purpose<\/strong><\/td><\/tr><\/thead>Invoice Line<\/td> 100029_07\/22\/2026_141600.00_10_120000<\/td> Source line the Plan is generated from<\/td><\/tr> Total Amount<\/td> -120,000.00<\/td> Posted accounting balance carried into the Plan<\/td><\/tr> Unearned Revenue<\/td> CDC-UNEARNEDREVENUE-1000004-1000048-_-_<\/td> Account holding revenue until it is recognized<\/td><\/tr> Product Revenue<\/td> CDC-P_REVENUE-1000004-1000048-_-_<\/td> Account credited when revenue is recognized<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<\/figure>\n\n\n\nStep 6: Verify the Runs and Execute the Revenue Recognition Process<\/strong><\/h3>\n\n\n\nThis confirms the generated Runs match the configured method, then recognizes revenue by creating the GL Journal.<\/p>\n\n\n\n
Review the Revenue Recognition Run tab for the expected schedule, then run the Revenue Recognition Process with an Accounting Date to generate the GL Journal for eligible Runs.<\/p>\n\n\n\nRecognition Date<\/strong><\/td>Recognized Amount<\/strong><\/td>Method<\/strong><\/td><\/tr><\/thead>07\/22\/2026<\/td> -10,000.00<\/td> Time-Based, equal monthly amount (12 Runs of \u20b9120,000 total)<\/td><\/tr> Service milestone runs<\/td> -82,000.00 \/ -164,000.00 \/ -82,000.00 \/ -82,000.00<\/td> Service-Based, percentage of \u20b9410,000 total per milestone<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<\/figure>\n\n\n\nCommon Issues and Resolutions<\/strong><\/h2>\n\n\n\nIssue<\/strong><\/td>Cause<\/strong><\/td>Resolution<\/strong><\/td><\/tr><\/thead>Plan not created<\/td> Product has no Revenue Recognition assigned<\/td> Assign a Revenue Recognition definition to the Product\u2019s Accounting tab<\/td><\/tr> Plan not created<\/td> Invoice was completed but not posted<\/td> Post the invoice; posting alone triggers plan creation<\/td><\/tr> Plan not created<\/td> Invoice Line has no Revenue Recognition<\/td> Confirm the invoice line\u2019s product carries the Revenue Recognition assignment<\/td><\/tr> No GL Journal generated<\/td> Revenue Recognition Process not executed<\/td> Run the Revenue Recognition Process for eligible Runs<\/td><\/tr> Revenue already recognized<\/td> Run already linked to a GL Journal<\/td> Use a new Accounting Date or verify the Run\u2019s Journal reference<\/td><\/tr> Service percentages don\u2019t total 100%<\/td> Service lines misconfigured<\/td> Review the Service tab and adjust percentages to total 100%<\/td><\/tr> Uneven period amounts<\/td> Rounding difference not aligned to the last Run<\/td> Expected behavior; the last Run absorbs rounding differences<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nNext Steps<\/strong><\/h2>\n\n\n\n\n- Execute the Revenue Recognition Process periodically as Runs become eligible.<\/li>\n\n\n\n
- Review generated GL Journals for Unearned Revenue and Product Revenue postings.<\/li>\n\n\n\n
- Monitor the Revenue Recognition Run tab for upcoming recognition dates.<\/li>\n\n\n\n
- Reuse the Revenue Recognition definition for similar retail service or subscription products.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"
Revenue Recognition is the iDempiere feature that defers revenue from an invoice into Unearned Revenue and releases it to Product […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,87],"tags":[],"class_list":["post-21607","post","type-post","status-publish","format-standard","hentry","category-idempiere-product","category-idempiere-partner-relations"],"_links":{"self":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts\/21607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/comments?post=21607"}],"version-history":[{"count":3,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts\/21607\/revisions"}],"predecessor-version":[{"id":28118,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts\/21607\/revisions\/28118"}],"wp:attachment":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/media?parent=21607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/categories?post=21607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/tags?post=21607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
This defines the header record and selects the recognition method, Service-Based or Time-Based.<\/p>\n\n\n\n
Navigate to Partner Relations \u2192 Revenue Recognition, click New, enter a Name and Description, and check Time based only if using time-based recognition.<\/p>\n\n\n\n For Service-Based definitions, the Service tab defines milestones and the percentage of revenue recognized at each stage.<\/p>\n\n\n\n Open the Service tab, add a line for each milestone with Line No, Percent, and Description; the percentages across all lines should total 100%.<\/p>\n\n\n\n For Time-Based definitions, frequency and period fields determine how many equal Runs are generated.<\/p>\n\n\n\n Check Time based, select the Recognition frequency, enter Number of Months, and set Fixed recognition day to 0 for equal monthly distribution.<\/p>\n\n\n\n Only products with an assigned Revenue Recognition definition trigger plan creation during invoice posting.<\/p>\n\n\n\n Open the Product window \u2192 Accounting tab, select the Revenue Recognition definition, and save.<\/p>\n\n\n\n Posting is the trigger point; completing the invoice alone does not create a Revenue Recognition Plan.<\/p>\n\n\n\n Create the Sales Order, generate the AR Invoice, Complete it, then Post it. The Revenue Recognition Plan and its Runs are created automatically during posting.<\/p>\n\n\n\n This confirms the generated Runs match the configured method, then recognizes revenue by creating the GL Journal.<\/p>\n\n\n\n Review the Revenue Recognition Run tab for the expected schedule, then run the Revenue Recognition Process with an Accounting Date to generate the GL Journal for eligible Runs.<\/p>\n\n\n\n Revenue Recognition is the iDempiere feature that defers revenue from an invoice into Unearned Revenue and releases it to Product […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,87],"tags":[],"class_list":["post-21607","post","type-post","status-publish","format-standard","hentry","category-idempiere-product","category-idempiere-partner-relations"],"_links":{"self":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts\/21607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/comments?post=21607"}],"version-history":[{"count":3,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts\/21607\/revisions"}],"predecessor-version":[{"id":28118,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/posts\/21607\/revisions\/28118"}],"wp:attachment":[{"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/media?parent=21607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/categories?post=21607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tenthplanet.in\/idempiere\/wp-json\/wp\/v2\/tags?post=21607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Field<\/strong><\/td> Sample Value<\/strong><\/td> Purpose<\/strong><\/td><\/tr><\/thead> Name<\/td> ERP Implementation Recognition<\/td> Identifies a Service-Based recognition definition<\/td><\/tr> Name<\/td> ERP Annual Subscription Recognition<\/td> Identifies a Time-Based recognition definition<\/td><\/tr> Time based<\/td> Unchecked \/ Checked<\/td> Selects Service-Based (unchecked) or Time-Based (checked) recognition<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Step 2: Configure Service-Based Recognition<\/strong><\/h3>\n\n\n\n
Line No<\/strong><\/td> Percent<\/strong><\/td> Description<\/strong><\/td><\/tr><\/thead> 10<\/td> 20.00<\/td> ERP Requirement Analysis<\/td><\/tr> 20<\/td> 40.00<\/td> ERP Implementation & Customization<\/td><\/tr> 30<\/td> 20.00<\/td> User Training<\/td><\/tr> 40<\/td> 20.00<\/td> Go-Live Support<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n <\/figure>\n\n\n\nStep 3: Configure Time-Based Recognition<\/strong><\/h3>\n\n\n\n
Field<\/strong><\/td> Sample Value<\/strong><\/td> Purpose<\/strong><\/td><\/tr><\/thead> Recognition frequency<\/td> Month<\/td> Interval between each Revenue Recognition Run<\/td><\/tr> Number of Months<\/td> 12<\/td> Total number of Runs to generate<\/td><\/tr> Fixed recognition day<\/td> 0<\/td> Distributes the amount equally with no proration<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n <\/figure>\n\n\n\nStep 4: Assign Revenue Recognition to the Product<\/strong><\/h3>\n\n\n\n
Field<\/strong><\/td> Sample Value<\/strong><\/td> Purpose<\/strong><\/td><\/tr><\/thead> Revenue Recognition<\/td> ERP Annual Subscription Recognition<\/td> Links the Product to the recognition schedule<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Step 5: Create and Post the Invoice to Generate the Plan<\/strong><\/h3>\n\n\n\n
Field<\/strong><\/td> Sample Value<\/strong><\/td> Purpose<\/strong><\/td><\/tr><\/thead> Invoice Line<\/td> 100029_07\/22\/2026_141600.00_10_120000<\/td> Source line the Plan is generated from<\/td><\/tr> Total Amount<\/td> -120,000.00<\/td> Posted accounting balance carried into the Plan<\/td><\/tr> Unearned Revenue<\/td> CDC-UNEARNEDREVENUE-1000004-1000048-_-_<\/td> Account holding revenue until it is recognized<\/td><\/tr> Product Revenue<\/td> CDC-P_REVENUE-1000004-1000048-_-_<\/td> Account credited when revenue is recognized<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n <\/figure>\n\n\n\nStep 6: Verify the Runs and Execute the Revenue Recognition Process<\/strong><\/h3>\n\n\n\n
Recognition Date<\/strong><\/td> Recognized Amount<\/strong><\/td> Method<\/strong><\/td><\/tr><\/thead> 07\/22\/2026<\/td> -10,000.00<\/td> Time-Based, equal monthly amount (12 Runs of \u20b9120,000 total)<\/td><\/tr> Service milestone runs<\/td> -82,000.00 \/ -164,000.00 \/ -82,000.00 \/ -82,000.00<\/td> Service-Based, percentage of \u20b9410,000 total per milestone<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n <\/figure>\n\n\n\nCommon Issues and Resolutions<\/strong><\/h2>\n\n\n\n
Issue<\/strong><\/td> Cause<\/strong><\/td> Resolution<\/strong><\/td><\/tr><\/thead> Plan not created<\/td> Product has no Revenue Recognition assigned<\/td> Assign a Revenue Recognition definition to the Product\u2019s Accounting tab<\/td><\/tr> Plan not created<\/td> Invoice was completed but not posted<\/td> Post the invoice; posting alone triggers plan creation<\/td><\/tr> Plan not created<\/td> Invoice Line has no Revenue Recognition<\/td> Confirm the invoice line\u2019s product carries the Revenue Recognition assignment<\/td><\/tr> No GL Journal generated<\/td> Revenue Recognition Process not executed<\/td> Run the Revenue Recognition Process for eligible Runs<\/td><\/tr> Revenue already recognized<\/td> Run already linked to a GL Journal<\/td> Use a new Accounting Date or verify the Run\u2019s Journal reference<\/td><\/tr> Service percentages don\u2019t total 100%<\/td> Service lines misconfigured<\/td> Review the Service tab and adjust percentages to total 100%<\/td><\/tr> Uneven period amounts<\/td> Rounding difference not aligned to the last Run<\/td> Expected behavior; the last Run absorbs rounding differences<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Next Steps<\/strong><\/h2>\n\n\n\n
\n