In RevPro, when revenue is recognized for the Contract Liability account, there is a provision to reclassify the revenue to both the long-term and short-term accounts. This provisioning process is referred to as long-term and short-term reclassification (LT/ST Reclass) in RevPro. The main purpose to perform LT/ST reclassification is to reclassify the revenue to be recognized in both long term and short term to understand the revenue position of your organization.
The LT/ST reclassification functionality in RevPro is driven by profiles and primarily works based on the specified profile values. Navigate to Setups > Application > Profiles and use the following profiles to configure the LT/ST reclassification functionality:
Use this profile to specify the number of months that are to be considered for the LT/ST reclassification process. For example, if this profile is set to 12, 12 months after the current open period will be considered as long-term periods. If the current open period is January 2019, the long-term periods will start from February 2020 until the revenue end date.
Use this profile to specify whether the revenue contract in CA position should participate in the LT/ST reclassification process. If this profile is set to Yes, LT/ST schedules can be booked for the revenue contract in CA position. Otherwise, the revenue contract in CA position will not participate in the LT/ST reclassification process.
In addition to profile configuration, for the LT/ST reclassification functionality to work, the following configurations are required in the system:
Setups > Application > Revenue Books
LT/ST reclassification is enabled for the revenue book.
Transaction input requirements
For LT/ST schedules to be created for eligible transaction lines, make sure the following fields are populated appropriately for the transaction lines that will participate in the LT/ST reclassification: