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If you are using the manual method of revenue recognition, revenue is recognized when the invoice is posted. If you are using the percentage-of-completion or revenue schedule revenue recognition method, invoicing and recognizing revenue are two separate processes.
When you recognize maintenance contract revenue for a specific period, a general ledger batch called RECOGNITION is created.
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If you are using the percentage-of-completion revenue recognition method, you receive messages stating that year-end closing should be run prior to recognizing revenue in subsequent fiscal years and that maintenance contracts ending in the period should be closed or renewed prior to recognizing revenue. Choose Continue in both caution windows. You need to close or renew contracts before recognizing revenue for a contract's final period.
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