Closed SO Lines and ARM What’s the (automated) process when SO lines are closed and there’s rev rec impact to consider? For example, an SO line is closed when: 1. There is an invoice (deferred revenue) and the revenue has not yet been recognized. Expected Result: Recognize revenue (because the original revenue trigger will never occur) 1. There is revenue recognized, but no invoice yet. ER: Reverse revenue and deferred revenue 1. There is NO revenue recognized and invoice yet. ER: No revenue element (otherwise, it’ll be open indefinitely since the revenue trigger won’t happen anymore) I understand that there’s a preference called Create and Maintain Revenue Element for Close Order Line but I don’t think it solves the issues above automatically. Do we really have to adjust the above manually? Also, if I have an SO with rev rec for spread out evenly in 3 years, and the customer cancelled the order after 2 years, how do we stop the rev rec process? 1. Override the SO amount and update rev rec? As much as possible we don’t want to change the original SO amount or store it in a custom field. 2. Create RMA and close it? We don’t like the idea that we have a positive revenue and negative revenue lines just because of the precancellation. 3. Any way to handle this ‘beautifully’?

In our case, we only close SO lines when we do NOT want any revenue recognition from the transaction. Our original data migration included SOs where revenue had already been recognized in a legacy system. Currently, one business line is processing Quotes on the CRM side, which creates a Sales Order. But some products are still being invoiced in a legacy system. We have a workflow running that closes the line items if they're a legacy-billed product.