Recently had a situation. An order was shipped with two lines at zero price and one line at some price. This order’s invoice was eligible for a revenue contingency which dictates that the the revenue will be recognized only upon customer pays. As a result of which all the lines are waiting in the Deferred or Unearned revenue bucket till the customer paid.

Eventually customer paid the invoice but two lines which are at zero price in the invoice never got out of unearned revenue (one line which has price did get recognized for revenue). What is the issue here? Issue is not as much as with Revenue but with COGS. Since COGS recognition depends on the revenue recognition it never got recognized since there was no revenue. As a result, cost of this order line continues to be in Deferred COGS (No revenue, No COGS and Deferred Revenue equals Deferred COGS and that makes sense). But we need COGS to be recognized.

But why is the revenue not getting recognized for the lines with Zero price? It is not that hard to guess. Revenue Adjustment can take place only if there is some value to the invoice line (R12.0.6 base). Eventually ended up getting a patch 7454302. Looks like this may solve the issue!