I have a weird rev reg recognition logic. An SO is usually invoiced into 2. We have billing schedules set up (based on percentages). The revenue from the 1st invoice is recognized based on Item Fulfillment. The revenue from the 2nd invoice, etc. is recognized as billed. I don't think this is possible but I am hoping I'm wrong. It's definitely possible with custom rev rec event type feature plus scripting but I'm trying to avoid that (scripting side). I tried the following: 1. Both invoices originate from the SO and SO creates a revenue arrangement. There can only be one rev rec rule per revenue element. 2. I cannot create rev rec rule that meets the rev rec criteria above. Basically, a single item will be recognized as revenue partially based on item fulfillment (initial invoice) and based on billing (subsequent invoices).

Don’t think you can do this on a item you can define a single rec rev rule and creation plan on either on Fulfillment or Billing but not both according to your logic

The first and second invoices share the same revenue elements created from the same SO. So I don't think changing the Create Revenue Plans On in the Revenue Element or Item record will work

I had a similar requirement where same item can have different rev rec rules based on order amount. I used charged based rev rec rules to achieve this using projects.

I did a test with an SO having two lines of the same item having a single rev rec rule. I generate an RA with therefore a single rule of rev rec and creation revenue plans on: revenue arrangement creation. I modified the 2nd line of My RA by script to put billing. Update the RP on your RA When I create my rev rec JE without having invoiced my SO, I only see the 1st line of my RA. Then when I Bill my SO, then I see my 2nd line of my RA.

@Marc thank you. I understand that we can change it on the RP but I am not sure how that solves the rev rec issue I have. I can't still replicate it just by changing it on the RP.

To clarify, on your Sales Order, do you have a single line item that splits into two invoices, or are there two distinct line items for the first and second invoices? Additionally, is there a method in place that allows you to distinguish between the first and second invoices on your SO ?

@Luis why won’t you just fulfill at that billed point? Make it simple?..

If you manage to flag the lines concerning the first invoice and seconde invoice on your SO (for example, by adding a checkbox '2nd Invoice' on the Sales Orders and Revenue Arrangements which you will then map in the revenue recognition fields, with source field = 2nd Invoice / target field = 2nd Invoice), then you can use the scripting logic that I've created. This involves running a MRS on the Revenue Arrangements (RA), and if the '2nd Invoice' checkbox is checked on the Revenue Elements line, then the 'CREATE REVENUE PLANS ON' value changes (from fulfillment to billing). This way, you can generate your revenue recognition at the time of fulfillment for your items from the first invoice, and generate your revenue recognition at the time of billing for your items from the second invoice.

@Marc there can be multiple lines in the SO and we use billing schedules. For example, the ordered quantity is 1 for all line items, and the first invoice is for 20%, then the invoiced quantity will be 0.2 for all of the lines on the invoice.

Well, what I meant was you are trying to make your billing to drive revenue but it is not really what happens, they are completely independent. (particularly from your last comment). Thus, I do not really see why your team would not use fulfillment as the revenue driver. Billing is entirely different though, and you can bill what you want. I think you team might want to take a second look to what they really want from NS..

Yeah. I will try to challenge them again. Thanks for the inputs