Adjusting the Revenue on an Order

For specific instructions on adjusting the revenue on an order, see the subsystem specific section.

You can adjust the price of a product on an order by changing the order Line Amount on the order. Doing so creates a debit/credit transaction on the order. The price of a product can be adjusted for proforma orders, active orders, and orders in which any payment has been received.

From the Price Adjustments screen, the system allows you to adjust the price up to ((base_unit_price plus/minus adjustment) times order_qty), if there are no discounts or coupons on the order line or if there are percentage discounts and/or coupons on the order. If there are flat rate discounts and/or coupons, the system allows you to adjust the price up to ((base_unit_price plus/minus adjustment) times order_qty) minus flat rate discount (regular and/or agency) amount(s) and/or minus flat rate coupon amount.

If you enter an amount that exceeds the amount that can be adjusted even if all discount and/or coupon amount(s) are zeroed out, you will see the following error message: “Adjustment amount exceeds maximum adjustment amount allowed”.

Adjusting the Revenue to Zero

As of 7.5.2, if you select the Adjust Revenue to Zero option from the Price Adjustment screen, the system will create a Type 6 adjustment transaction that will reverse the amounts in all of the type 4 and Type 6 transactions. The system will identify the transaction details to be created and will calculate the amounts by grouping all far_txn_detail records for  type 4 and type 6 txns by Far_Txn_Detail.TXN_FUNCTION_CODE, Far_Txn_Detail.ACCOUNT then (sum (Far_Txn_Detail.BASE_AMOUNT) times -1) and create a new Type 6 with those far_txn_detail records. Existing base logic that evaluates write-off transactions when AR transaction are created is used.

If Order_Detail.RECOGNITION_STATUS_CODE = ‘C’, the system will create a Far_Txn_Detail record to reverse revenue instead of deferred revenue. This is also true for shipping revenue and discount revenue.  

If Order_Detail.RECOGNITION_STATUS_CODE = ‘A’, the system will follow the same logic and FAR670 will then correct the amounts if they need to be updated.

Transaction Examples

Example 1

Assume a MISC order line with a discount. After the order line is saved, a coupon is added. The order line has the following transactions:

Far_Txn records:

Far_Txn_Detail records:

If the user selects the “Adjust Revenue to Zero” radio button, the system will create the Type 6 transaction as follows:

Far_Txn records:

Far_Txn_Detail records:

Example 2 (with deferred revenue)

Assume a SUB order line with a discount. Assume revenue has been recognized for three issues. The order line has the following transactions:

Far_Txn records:

Far_Txn_Detail records:

Now the user wants to adjust the revenue to zero. The user checks the “Adjust Revenue to Zero” radio button, and the system will create the Type 6 transaction as follows:

Far_Txn records:

Far_Txn_Detail records:

FAR670 will adjust the deferred revenue to the correct amount.