Oracle Financials Cloud: General Ledger 2017 Implementation Essentials — Question 36

A client has implemented a revenue policy with time-based contingencies. An invoice for a creditworthy customer is imported and one of the invoice lines is associated with both a nonstandard refund policy (60 days) and an acceptance clause (100 days).
When will revenue be recognized?

Answer options

• A. only after manual intervention
• B. after 100 days
• C. immediately
• D. after 60 days

Correct answer: B

Explanation

Revenue recognition will occur after the acceptance clause of 100 days, as it takes precedence over the refund policy. The refund policy allows for a return within 60 days, but since the acceptance clause extends to 100 days, revenue cannot be recognized until that period has elapsed. Therefore, options A, C, and D are incorrect as they do not align with the time-based contingencies set in the policy.