image_1.pngCopyright©2024 Yonyou Group All Rights Reserved.Without the written permission of Yonyou Group, no part of this user manual may be copied, reproduced, translated, or reduced for any purpose. The content of this user manual may change without notice, please stay informed.Please note: The content of this user manual does not represent a commitment made by Yonyou Network.OverviewRevenue management meets the requirements of the new revenue standards, enabling enterprise revenue accounting management and supporting different revenue recognition methods and timing for revenue accounting processing.Revenue accounting is an important component of financial accounting. In unconventional sales models, the timing of revenue recognition for accounts receivable often presents inconsistencies. The previous model of simultaneously accounting for revenue through accounts receivable management no longer adequately meets the growing business accounting requirements of users in such cases. By adding independent revenue management on top of accounts receivable management, this need can be specifically addressed, helping enterprises conduct revenue accounting processes more reasonably and compliantly.image_2.pngApplication ValueSupports flexible setting of revenue recognition rules, integrates with business in real-time, and automatically recognizes revenue.Based on the data of contract performance obligations, determine revenue recognition rules to help achieve more compliant accounting.Provide open interfaces and standard docking document entities, allowing for rapid application deployment and facilitating integration with heterogeneous systems.By centrally managing performance obligation information, it facilitates the unified platform for revenue accounting to review contracts, determine revenue recognition methods, monitor tax risks in advance, ensure compliance in revenue accounting, and avoid additional expenses for the enterprise. By integrating front-end business processes, it automatically recognizes revenue when the conditions for revenue recognition are met, improving the efficiency of business personnel.Application ScenariosScenario 1: Customer Confirms IncomeBusiness DescriptionAccording to the new revenue standards, sales transactions that do not meet the conditions for recognition over time should recognize revenue at the point when control is transferred. Customer confirmation is one of the clear indicators of control transfer. After the release of the new revenue standards, many product sales companies have shifted from recognizing revenue at the point of invoicing to recognizing revenue at the point of customer confirmation.Typical business: Selling goods, simple installation, etc.Business Processimage_3.pngProcess Description:1.Sales personnel import or pull orders from performance obligation information, or the business system transmits customer confirmation information; 2.Finance personnel approve customer confirmation information; 3.After the customer confirmation information is approved, if the confirmation path on the revenue recognition rules is set to revenue recognition order, the system will push and generate a revenue recognition order. If the confirmation path is set to revenue recognition transaction, it will directly generate a revenue recognition transaction; 4.Finance personnel approve the revenue recognition order; 5.After the revenue recognition order is approved, a revenue recognition transaction is automatically generated, followed by the generation of event entries and general ledger vouchers.Application ListFinancial Cloud: Financial Accounting: Revenue Management: Data Preparation: Performance Obligation InformationFinancial Cloud: Financial Accounting: Revenue Management: Data Preparation: Customer Confirmation InformationFinancial Cloud: Financial Accounting: Revenue Management: Daily Operations: Revenue Recognition DocumentFinancial Cloud: Financial Accounting: Revenue Management: Accounting Affairs: Revenue RecognitionFinancial Cloud: Event Accounting Middle Platform: Accounting Center: Sub-Ledger: Event EntriesFinancial Cloud: Financial Accounting: General Ledger: Vouchers: VouchersScenario 2: Settlement Confirmation of IncomeBusiness DescriptionFor short-term one-time services or open-ended services with variable pricing, such as those charged by the occasion or by person-days, companies generally settle based on the actual quantity and the purchaser, recognizing revenue at the time of settlement.Business Processimage_4.pngProcess Description:6.Business personnel pull orders from performance obligation information, or the business system transmits settlement information; 7.Financial personnel approve the settlement information; 8.After the settlement information is approved, if the confirmation path on the revenue recognition rules is = revenue recognition order, the system pushes the order to generate a revenue recognition order; if the confirmation path = revenue recognition transaction, it directly generates a revenue recognition transaction; 9.Financial personnel approve the revenue recognition order; 10. After the revenue recognition order is approved, a revenue recognition transaction is automatically generated, followed by the generation of event entries and general ledger vouchers.Application ListFinancial Cloud: Financial Accounting: Revenue Management: Data Preparation: Performance Obligation InformationFinancial Cloud: Financial Accounting: Revenue Management: Data Preparation: Settlement InformationFinancial Cloud: Financial Accounting: Revenue Management: Daily Operations: Revenue Recognition DocumentFinancial Cloud: Financial Accounting: Revenue Management: Accounting Affairs: Revenue RecognitionFinancial Cloud: Event Accounting Middle Platform: Accounting Center: Sub-Ledger: Event EntryFinancial Cloud: Financial Accounting: General Ledger: Vouchers: VouchersScenario 3: Invoice Confirmation of RevenueBusiness DescriptionIn scenarios where it is difficult to determine a reasonable progress of performance for revenue recognition based on time periods, companies can simplify the process by recognizing revenue based on the invoiced amount.In the scenario of revenue recognition at the point in time, many enterprises still recognize revenue at the invoicing point.Business Processimage_5.pngProcess Description:11. The business system transmits invoicing information to Financial Accounting - Revenue Management - Data Preparation - Invoicing Information via OpenAPI; 12. When the confirmation path on the revenue recognition rules is set to Revenue Recognition Document, the invoicing information pushes to generate a revenue recognition document; when the confirmation path is set to Revenue Recognition Transaction, it directly generates a revenue recognition transaction; 13. Financial personnel approve the revenue recognition document; 14. After the revenue recognition document is approved, a revenue recognition transaction is automatically generated, followed by the generation of event entries and general ledger vouchers.Application ListFinancial Cloud: Financial Accounting: Revenue Management: Data Preparation: Performance Obligation InformationFinancial Cloud: Financial Accounting: Revenue Management: Data Preparation: Invoicing InformationFinancial Cloud: Financial Accounting: Revenue Management: Daily Operations: Revenue Recognition DocumentFinancial Cloud: Financial Accounting: Revenue Management: Accounting Affairs: Revenue RecognitionFinancial Cloud: Event Accounting Middle Platform: Accounting Center: Sub-Ledger: Event EntriesFinancial Cloud: Financial Accounting: General Ledger: Vouchers: VouchersScenario 4: Payment Confirmation of IncomeBusiness DescriptionFor business scenarios such as simple one-time services like parking and the sale of distribution model products, enterprises recognize revenue at the point of payment collection.Business Processimage_6.pngProcess Description:15. Sales personnel import or pull orders from performance obligation information, or the business system transmits the payment receipt; 16. Finance personnel approve the payment receipt; 17. After the payment receipt is approved, if the confirmation path on the revenue recognition rules is set to revenue recognition document, the system will push and generate the revenue recognition document; if the confirmation path is set to revenue recognition transaction, it will directly generate the revenue recognition transaction; 18. Finance personnel approve the revenue recognition document; 19. After the revenue recognition document is approved, the revenue recognition transaction is automatically generated, followed by the generation of event entries and general ledger vouchers.Application ListFinancial Cloud: Financial Accounting: Revenue Management: Data Preparation: Performance Obligation InformationFinancial Cloud: Financial Accounting: Revenue Management: Data Preparation: Receipt DocumentFinancial Cloud: Financial Accounting: Revenue Management: Daily Operations: Revenue Recognition DocumentFinancial Cloud: Financial Accounting: Revenue Management: Accounting Affairs: Revenue RecognitionFinancial Cloud: Event Accounting Middle Platform: Accounting Center: Sub-Ledger: Event EntriesFinancial Cloud: Financial Accounting: General Ledger: Vouchers: VouchersScenario 5: Final Acceptance Confirmation of RevenueBusiness DescriptionFor simple one-time services such as installation and maintenance, as well as long-term service scenarios where payment cannot be collected without final delivery as stipulated in the contract, companies generally recognize revenue at the point of final acceptance by the customer.Business Processimage_7.pngProcess Description:20. Business personnel can import or manually add project progress information from the page, or the business system will transmit project progress information to financial accounting - revenue management - project progress information; 21. Financial personnel approve the project progress information; 22. It is required that the "transaction type" of the project progress information and the "project progress type" of the revenue recognition rules are the same, and the progress ratio = 100%, acceptance = "Yes"; 23. When the confirmation path on the revenue recognition rules is set to revenue recognition document, the system will push and generate the revenue recognition document. If the confirmation path is set to revenue recognition transaction, it will directly generate the revenue recognition transaction; 24. Financial personnel approve the revenue recognition document; 25. After the revenue recognition document is approved, the revenue recognition transaction is automatically generated, followed by the generation of event entries and general ledger vouchers.Application ListFinancial Cloud: Financial Accounting: Revenue Management: Data Preparation: Performance Obligation InformationFinancial Cloud: Financial Accounting: Revenue Management: Data Preparation: Project Progress InformationFinancial Cloud: Financial Accounting: Revenue Management: Daily Operations: Revenue Recognition DocumentFinancial Cloud: Financial Accounting: Revenue Management: Accounting Affairs: Revenue RecognitionFinancial Cloud: Event Accounting Middle Platform: Accounting Center: Sub-Ledger: Event EntriesFinancial Cloud: Financial Accounting: General Ledger: Vouchers: VouchersScenario 6: Confirming Revenue Based on Performance ProgressBusiness DescriptionAfter the new revenue standards are released, enterprises should first assess whether the conditions for recognizing revenue over time are met based on the contract terms after signing a contract with customers. If met, revenue is generally recognized based on the progress of performance (input progress/output progress).Meeting one of the following conditions satisfies...
