Revenue recognition

[Former Member]

Hi,

Can someone throw light on revenu recognition, and how to customize for this.

Thanks

Phani.

[Former Member · Accepted solution]

Hi Phani,

Revenue account determination is carried out using the condition technique.

For controlling revenue account determination, the following criteria are important:

Account determination table

In the account determination table, you define the criteria on which account determination should depend.

Access Sequence

Here, you define in which sequence fields are read from the billing document (header and item). An access sequence refers to the permitted field combinations stored in the condition table.

Account determination type

The account determination type is a module of the conditions technique. You have to create at least one account determination type and allocate it to an account determination procedure.

Account determination procedure

The account determination procedure contains the necessary account determination types with which the SAP System can automatically find the revenue accounts.

Account key

With the three-digit account key, you finally allocate the revenue account.

You can set the system so that account determination is dependent upon the following master data fields:

Account group for material in the material master record

Account group for customer in the customer master record

Posted in Account determination.

You can go through the below link for better understanding.

http://help.sap.com/saphelp_47x200/helpdata/en/38/84463cf5834f05e10000000a11405a/frameset.htm

Thanks,

Swamy H P

[Former Member]

Hi,

Please go through the link below , hope this help.

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

http://help.sap.com/saphelp_45b/helpdata/en/2d/bdd69ad9b411d199d80000e8a5bd28/content.htm

[Former Member]

Hi,

Go to IMG-SD-Basic Function-Account Assignment-Revenue recognition

1)Set Revenue Recognition for Item categoreis-In this step you determine the revenue recognition methods for the required item categories and also determine the accrual start date.

Accrual start date- The accrual start date determines the start of the period when revenues

should be implemented.

a)Proposal based on contract start date

b) Proposal based on the start date for the billing plan

2)Maintain Account Determination-In this IMG activity, you configure account determination for revenue

recognition.

a)Determining the revenue account-The revenue account is maintained in the first column.

b)Determining the deferred revenue account-The deferred revenue account is a special general ledger account that is used to determine the revenue that is billed but not yet recognised.

c)Determining the unbilled receivables account-The account for unbilled receivables is a special general ledger account that is used to determine the revenues that have been recognised but not yet billed.

Hope this helps

Regds......

Sumit

[Former Member]

Hi Phani,

Revenue recognition methods are determined using the settings in the item category. By setting up two fields, you can determine what type of revenue recognition is used. These two fields are Rev. recognition and Acc. period start .

Pls go through the following links.These are very helpful and understandable also.

[http://www.scmexpertonline.com/archive/Volume_05_(2007)/Issue_02_(March)/V5I2A3.cfm?session=]

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

Regards,

Krishna.