Data Migration of Contracts with periodic billing and revenue recognition

[Former Member]

Hello Experts,

I am trying to develop a legacy data migration plan for Contracts with periodic billing plan and revenue recognition.

Example of the scenario is given below:

Customer signed a contract for one year starting 01/01/2009.

Customer is billed quartely, billed in advance.

SAP going live on 04/01/2009

Customer is billed for 3 months and also for initial set up fees.

Revenue recognition is done monthly.

We have to migrate this contract to SAP.

Billing document posting may be necessay as it affects revenue recognition which spans across the total contract period.

Any ideas how to do this?

Thanks A Lot

Anil

Edited by: Anil Jose on Sep 17, 2008 9:38 PM

[Former Member]

Hi Friends,

I an also having similar requirement. Could any guide how to go about this.

Thanks in advance,

Kiran

[Former Member]

Hi Anil

How did you manage this? We also had the same problem in one of our contracts and what we did was that we copied the contracts from the legacy with the full value. That is suppose SAP went live on 1st April, 2009 and the contract was created on 1st January 2009 for a value of suppose 100 USD, with the first billing being done on 1st Jan for 33.33 USD for 4 months. We first created the contract with a validity from 1st Jan 2009 in the new system. We billed it with a billing type that we created that did not actually create new accounting entries as the accounting entries had already been created in the legacy system. In the new system then we recognised the revenue till the go live, so that the actual value remaining of the contract reduced. Then we started the billing plan of the contract from 1st of April 2009 for the remaining amount. So next invoice was created on 1st april for 33.33 USD. Can you share your solution.

Regards

Indranill

[Former Member]

Hi,

We defined our Cut over as follows.

Create all the contracts from go-live date(01-04-09) and end with actual contract end date of each contract with remaining amount to be filled after SAP Golive.

For example, your contract might start from 1st jan 09, end by 31st Dec 09. Create a Contract from 1st Apr(Golive date) and End with actual contract end (31st Dec). Calculate the amount for remaining period( to be filled from SAP), ie. 9 month from April first. System will create three bills in this year.

Babu

[Former Member]

Hi Anil,

Please share the solution in detail if u have already done it....

[Former Member]

Hi,

Post a new thread and Explain your requirement.

Babu.K