Coupon Financial Transactions

The system first determines whether the coupon amount needs to be deferred. It is the product on the order line – not the coupon – that controls whether the coupon amount should be deferred. If revenue for the product is being deferred, then the coupon amount will also be deferred. If revenue for the product is not being deferred, then the coupon amount will not be deferred. Whether revenue for a product is being deferred is controlled by two things:

• Product_Account.REVENUE_RECOG_METHOD_CODE defined for the product

• Whether the REVENUE_ACCOUNT is the same as the DEFERRED_ACCOUNT defined for the product

Sales (Type 4) Transaction

Personify360 creates the distribution for a coupon on the Sales (Type 4) transaction upon invoice of an order line that has a coupon. Prior to 7.6.1, when an order line that had a coupon was invoiced, a transaction detail record was created for the TXN_FUNCTION_CODE of CPNDISC. As of 7.6.1, if revenue for the product on the order line is to be deferred, the coupon amount will be deferred. A debit transaction detail record will be created with a TXN_FUNCTION_CODE of DEFCPNDISC and the account will be set to Ord_Coupon.DEFERRED_DISCOUNT_ACCOUNT.

If revenue for the product on the order line is not being deferred, the coupon amount will not be deferred. A debit transaction detail record will be created with a TXN_FUNCTION_CODE of CPNDISC and the account will be set to Ord_Coupon.DISCOUNT_ ACCOUNT.

The distribution of the Sales (Type 4) transaction may include other TXN_FUNCTION_CODE distributions, such as cost of goods sold (COGS), inventory (INV), shipping (SHIP), discount (DISC), etc.

Revenue Recognition (Type 7) Transaction

Personify360 will create the distribution of the Revenue Recognition (Type 7) transaction:

• upon revenue recognition by the FAR670 TRS process,

• the manual transfer of an order line that results in its cancellation,

• the manual cancellation of an order line.  

Recognition of deferred coupon amounts will be recognized based on the Product_Account.REVENUE_RECOG_METHOD_CODE defined for the product on the order line.

Debit/Credit Memo (Type 6) Transaction

If an order line has a coupon on it, and if revenue for the product on the order line is to be deferred based on the Product_Account.REVENUE_RECOG_METHOD_CODE and REVENUE_ACCOUNT and DEFERRED_REVENUE_ACCOUNT defined for the order line product are different, Personify360 will create the distribution of the Debit / Credit Memo (Type 6) transaction upon price adjustment, order transfer, or cancellation of an order line. If a coupon is on the order line when the price is adjusted or the order line is transferred or the order line is cancelled, the adjustment transaction will create transaction detail records of CPNDISC and/or DEFCPNDISC.

Price Adjustments with Previously Applied Coupon

• If an invoiced order line with a coupon has a product where Product_Account. REVENUE_RECOG_METHOD_CODE is not "On Invoice" and a price adjustment is made:

• If the price adjustment decreases the price on the order line and the coupon on the order line is a flat amount that is now larger than the order line amount, the coupon amount has to be reduced to the order line amount. The order line amount cannot be less than 0.

• All other appropriate financial transaction detail records are created.

Price Adjustments on the Application of a Coupon

• If an invoiced order line with a product where Product_Account. REVENUE_RECOG_METHOD_CODE is not "On Invoice" and a coupon is applied to the order line, causing a Type 6 transaction to be created:

• A coupon amount cannot be applied that will cause the order line amount to be less than zero.

• All other appropriate financial transaction detail records are created.

Price Adjustments on the Removal of a Coupon

• If an invoiced order line has a coupon and has a product where Product_Account. REVENUE_RECOG_METHOD_CODE is not “On Invoice” and the coupon is removed from the order line, a Type 6 transaction to be created:

Order Transfers

• If a coupon exists on an active, invoiced order line and revenue for the product on the order line is being deferred based on Product_Account.REVENUE_RECOG_METHOD_CODE, and then the order line is transferred, a type 6 debit/credit transaction to be created on the transfer-from order line.

• All other transaction detail records are created as appropriate.

Cancellations

If a coupon exists on an active, invoiced order line and revenue for the product on the order line is being deferred based on Product_Account.REVENUE_RECOG_METHOD_CODE, and then the order line is cancelled, a type 6 debit/credit transaction to be created to reverse the coupon amount.

• If the coupon has a coupon discount account that is different than the deferred coupon discount account and the recognition status is active, cancelling the order line results in credit to DEFCPNDISC for the coupon amount

• If the coupon has a coupon discount account that is different than the deferred coupon discount account and the recognition status is completed, cancelling the order line results in a credit to CPNDISC for the coupon amount.

• If the coupon has a coupon discount account that is the same as the deferred coupon discount account and the recognition status is active or completed, cancelling the order line results in a credit to CPNDISC for the coupon amount.

• All other transaction detail records are created as appropriate.