In Oracle Accounts Receivables (AR), Invoicing Rules determine when revenue is recognized for a transaction (invoice), particularly in relation to the billing date and accounting period.

🔹 Types of Invoicing Rules in Oracle AR:

Oracle provides two primary invoicing rules:

1. Advance Invoicing (In Advance)

• Revenue is recognized immediately on the invoice date.
• Used when you bill the customer before the service or product is delivered.

Use case: Subscriptions, software licenses, or maintenance billed annually upfront.

Example:

Invoice Date: Jan 1,

Service Period: Jan 1 – Dec 31

Full revenue is recognized in January.

2. Arrears Invoicing (In Arrears)

• Revenue is recognized at the end of the service or delivery period.
• Used when you bill the customer after providing the service.

Use case: Support or consulting services billed monthly/quarterly after completion.

Example:

Service Period: Jan 1 – Jan 31

Invoice Date: Feb 1

👉 Revenue is recognized in February.

1. In Advance

From task panel -> Create Transaction.

Fill required field then press on revenue scheduling.

Choose revenue scheduling from rule option

Then press complete and review then save and close

You will get a confirmation message Then go to Revenue to recognize revenue before posting to ledger.

From task panel->> Recognize Revenue

You will get a confirmation number go to check it in schedule process.

From navigator->Tools-> schedule process

Then go back to receivable->billing search by transaction number to find invoice to post it to ledger

Revenue: is recognized in the first month

_ Unearned revenue: it is a liability on a company until goods or services provided to customer.

1. In Arrears :

From task panel -> Create Transaction

Fill required field then press on revenue scheduling, choose invoicing rule In Arrears

Save and close and take confirmation number

131765

Then go to Revenue to recognize revenue before posting to ledger

You will get a confirmation number go to check it in schedule process

Then go back to receivable🡪billing search by transaction number to find the invoice to post it to ledger

Revenue: is recognized in the last month.

Unbilled Receivable: refers to revenue that has been recognized but not yet billed to the customer, It consider an asset that will convert into cash or A/R in last period of invoice.