Revenue recognition in Item category

[Former Member]

Dear All

Can you advise what exactly is revenue recognition in item category?.

I need to enter A in the field, but the field is greyed.

Thanks

Deepu Pillai

[Former Member]

Dear Deepu,

The Concept of "Revenue Recognition" in Item Category is -

The material, with specified Item Category, is defined for income-accrual or not.

Now, Income-accrual means, say, in a month, you have "n" no. of orders to deliver, but might possible that Invoice and Payment, may get done or may not be.

So, to realise such income for a particular period, we run revenue-recognition (VF44). In VKOA, we maintain "Provisional Account" for such income.

Once invoiced, Accrued income G/L gets debited and Customer G/L gets credited.

[Revenue Recognition|http://help.sap.com/erp2005_ehp_03/helpdata/EN/4d/fcd139f6e4cf2ce10000000a114084/frameset.htm]

As you asked for maintaining - Type "A" in Item Cat., go through

[Time related Rev. reco.|http://help.sap.com/erp2005_ehp_03/helpdata/EN/59/aff23cd85c11d199d60000e8a5bd28/frameset.htm]

Another Type is "B"

[Service related Rev. reco.|http://help.sap.com/erp2005_ehp_03/helpdata/EN/59/aff23fd85c11d199d60000e8a5bd28/frameset.htm]

Best Regards,

Amit

Note: There are few of my posts in threads

this will provide some in-sights for rev. recog.

[Former Member]

Hi,

please find the link it might be usefull for u .

http://fuller.mit.edu/sb_support/media_lab/deferred_revenue_recog.htm

answer is given in details in OSS Note 820417.

Best regards,

Y.VENKATASWAMY.

Edited by: yanamadala venkataswamy on Nov 30, 2008 4:29 PM

[Former Member]

Hi,

You will have to write to SAP for this and they will send you a questionnaire and then they will provide you with some notes which when you apply only then the field will open for entry.

SAP also conducts a pre go-live check if you use revenue recognition functionality.

Regards,

SAPFICO