Revenue recognition design
I'm trying to design a revenue recognition model for my client, based in what he wants.
They only create sales order for service material (not delivery relevant) and normaly with a milestone billing plan.
After the sales order creation they want to post reveneu recognition as follows:
- Every week (one day) they will post the revenue for a specific value that tehy will only now that specific day. So Time-related rev. rec (A) is ruled out because the value to be recognize is unkown until the day to be recognize.
- Also they will post the revenue recog. the last day of the month (again, the value to be posted is unkown till that day).
- The last one: they want to be able to post revenue recognition at any time for the value they want.
Service based rev. rec. based in an event looks good to me, but I don't know how to manage those events.
Any help is very welcome.
Amit Yadav replied
We create Material as Type: DIEN with 4 Views:
Basic Data 1
Sales: Sales Org. Data 1
Sales: Sales Org. Data 2
Sales: General/Plant Data
Whereas, We have a Z-copy of Standard Order - OR with reference mandatory.
For more clear picture, I request you to please go through each link in:
Spro --> IMG --> Sales & Distribution --> BAsic Functions -->Acct Assgn/ Costing
--> Revenue Acct Determination
--> Revenue recognition
There you will find what Are all item Cat. and Mat Acct Assgn Groups are maintained for rev recog. You may create your own, also.
Once, gone-through with the all relevant links, Please revert for more clearification, If reqd.