Revenue Recognition based on User Status of assigned Sales Order line item

[former_member135778]

Dear Community members,

We have requirement to recognize / de-recognize revenue posted to WBS for calculation of RA, based on the 'User status' of the assigned Sales Order line item.

To elaborate requirement further -

1) WBS Element - XXX - 10 ( with operative indicator - Plan/Bill/Account Assign)

2) Sales Order(SO) Line Items assigned to the above WBS -

- SO No - 123 Line Item 10 - Actual Rev - $ 300 - User Status - EXE (Meaning this work is in progress , partial payment received thus actual revenue for RA at WBS is 'Zero'

- SO No - 124 Line Item 20 - Actual Rev - $ 400 - User Status - COMPL(Meaning this work is Complete , all payment received thus actual revenue for RA at WBS is $400

- SO No - 125 Line Item 10 - Actual Rev - $ 800 - User Status - EXE (Meaning this work is in progress , partial payment received thus actual revenue for RA at WBS is 'Zero'

As per WBS reports Actual Revenue posted to WBS XXX-10 is $ 1500 ( $300$400$800) , however since two SO line items ( SO 123 /line item 10 and SO 125 / line Item 10 ) are NOT having User status 'COMPLETE', the actual revenue posted by those line items $ 1100/- ($300 + 800) should not be included as Actual Revenue for RA at WBS level.

Thus Actual Revenue for RA at WBS XXX-10 should be $ 400 /- ( the revenue posted by SO 124/line item 20 which has user status as 'COMPLETE')

How do above can be achieved?? Is there any standard solution for this?? Is any SAP Note available for this (I too am looking for one but not found any ) ?? do we need any enhancement , Customer exit etc

Thanks in advance

with regards

[former_member203108]

Hi,

Just check this link....

http://help.sap.com/erp2005_ehp_04/helpdata/EN/90/ba6f37446711d189420000e829fbbd/frameset.htm

there is a method in RA called Completed contract method, where revenues and profits are realized only after order is completed not in partial delivery and revenue....

I dono the right solution for u...but the link would be helpful I believe....lets wait for experts reply.

[former_member135778]

Hi,

Thanks. You are right that the 'Completed Contract Method' would defer revenue recognition. However, the status checked would be of the RA object (WBS Element in this case, as RA key is on WBS and RA is being calculated on the WBS).

However, our requirement is to check the user status of the Sales Order Line items assigned to the WBS element and filter the revenues posted based on the active user status of individual Sales Order Line item.

Please give you inputs.

Thanks in advance

With regards