I'm checking if SAP revenue recognition can be used in my project.
I'd like to know what SAP does in this situation:
- I create a sales order (no delivery is expected).
- VF44: i realize revenue for 10.000 euro
- I create invoice and release it for accounting for 15.000 euro.
So the revenue recognition is for 10.000 euro but the value of my bill is 15.000 euro. What does the system do with the 5.000 euro difference?
My client actualy takes that difference as a down payment, so what would happend in the next revenue recognition?
I try to explain:
1. When Invoice Created (15.000 euros)
Debetor's A/c - 15 euro (Dr - debited)
To Deffered A/c - 15 euro (Cr - Credited)
2. On Rev. recog. - VF44
Deffered A/c - 10 euro (Dr - debited)
To Income A/c - 10 euro (Cr - Credited)
3. Now, in next Rev. recog. (for remaining 5 euros)
Deffered A/c - 5euro (Dr - debited)
To Income A/c - 5 euro (Cr - Credited)
4. On Down Payment (5 euros)
Bank A/c - 5 euro (Dr - debited)
To Debtor's A/c - 5 euro (Cr - Credited)
5. On final Collection
Bank A/c - 10 euro (Dr - debited)
To Debtor's A/c - 10 euro (Cr - Credited)
Initally your debtor was debited with 15 Euros (point 1), which is getting knock-off in Points 4 (5 euros) and point 5 (10 euros).
Also, Deffered rev. a/c was getting credited with 15 euros (point 1), which is getting knock-off against point 2 (10 euros) and point 3 (5 euros).
Finally, your Bank A/c is debited with 15.000 Euros and Debtor is credited with 15.000 euros.