Revenue recognition - deferred revenue

[Former Member]

Hi Experts,

We want to recognize some of our revenues other than the billing date.

Some of our sales are by sea and using CIF incoterms, so if the goods was sent during the last days of the accounting period, we can not recognize it in the FI reports till the goods arrived it's destination.

So I want to do the PGI and the billing today and credit the deferred revenue account instead of the revenue account.

I saw the SPRO regards it.

1. What are the specific setting I have to use in "spro, sales and distribution, basic function, account assignment/costing, revenue recognition, set revenue recognition for item category" for this case? (time related/service related/billing related...etc)

2. Can I use regular sales order, delivery, PGI, billing document or do I have to use contract or something else?

3. Can the trigger be the incoterms/destination country instead of the item category?

Thanks

Ifer

[Former Member]

Configuration of RR in SAP isn't a complex thing. As you will understand from the notes mentioned above. In fact from SD side it involves just one check and creation of 2 more BS GL a/cs. The impact of this is ENORMOUS though, in terms of external reporting for the organisation, as you are creating 2 new BL a/cs. SAP recommends not to activate RR unless you are very sure of what you want to do. In fact, the config flag can't be activated until explicit access is gained from SAP (even for your test client). As regards detailed config and other information regarding billing runs, the above mentioned notes should be helpful.

Cheers,

Suresh

[Former Member]

Symptom

After you implement Note 1239165, the source code prerequisites for connecting the accruals account determination to the incompletion log in the standard system are met. This note describes the Customizing settings that you have to make to use the functions described in Note 1239165.

Other terms

Standard revenue realization, Customizing, incompletion, KONV, SAKN1, SAKN2, ZZ_RR_TVUVF, RV_INVOICE_ACCOUNT_DETERM, RR_ACCOUNT_MISS_DEF, RR_ACCOUNT_MISS_UNB, TVUVF, SAKUR, TVRRUR

Reason and Prerequisites

The Customizing settings are required to use an error group in revenue realization to specify the incompletion and to prevent the system creating subsequent documents.

Solution

Make the following settings:

1. Create the following procedures in Customizing:

Sales and Distribution -> Basic Functions -> Log of Incomplete Items -> Define Incompleteness Procedures -> Incompletion Group B (Sales - Item) -> Procedures ->

-> RR (text RevRec item). Save your entry.

2. For the accruals account, create the following status group:

Sales and Distribution -> Basic Functions -> Log of Incomplete Items -> Define Status Groups

-> Status grp General Delivery Billing doc. Price Goods movement

RR X X X X

Additional information: The revenue accounts are assigned to the status group 00 through the error group "MP". This status group permits subsequent documents to be created.

3. It is not necessary to assign the incompletion procedure RR to the item category that is relevant for revenue recognition. In the case of item categories that are relevant for account determination, by default, the system uses the error group "MP" for the revenue accounts and the error group "RR" for the accruals accounts.

4. Create the report ZZ_RR_TVUVF to execute the entries required to check the fields and to assign the status groups. The report enters the required entries in the tables and in TVUVF. If these already exist, the system issues an error message.

The following check fields and status groups are entered:

Table Field name Description Screen Status Warning Rank

KONV SAKN2 accruals account PKON RR

TVRRUR SAKUR unbilled receivable account RR

Attributes

-

---

Title: Insert/delete RR incompletion settings in TVUV and TVUVF

Type: 1 (Executable program)

Status: T (Test program)

Application: V (Sales and Distribution)

Package: (Customer-specific package)

Selection texts

-

---

P_DELKZ Delete revenue recognition records

P_INSKZ Create revenue recognition records

The source code is provided in the attached correction instructions.

Insert Block

&----

---

*& Report ZZ_RR_TVUVF *

*& *

&----

---

*& *

*& *

&----

---

report zz_rr_tvuvf.

**********

• Tables *

**********

tables: tvuvf.

**************

• Work areas *

**************

data: begin of gvt_tvuvf occurs 0.

include structure tvuvf.

data: end of gvt_tvuvf.

data: lvf_subrc1 like sy-subrc,

lvf_subrc2 like sy-subrc.

data: gvs_tvuvf like tvuvf.

======================================================================

• Definition of the selection screen *

======================================================================

parameters p_inskz radiobutton group act.

parameters p_delkz radiobutton group act.

======================================================================

• Initialization *

======================================================================

initialization.

clear gvt_tvuvf.

refresh gvt_tvuvf.

======================================================================

• Selection of data *

======================================================================

start-of-selection.

select single * from tvuvf into gvs_tvuvf

where fehgr = 'RR'.

• and tbnam = 'KONV'

• and fdnam = 'SAKN2'

• and statg = 'RR'

• and fcode = 'PKON'.

lvf_subrc1 = sy-subrc.

select single * from tvuvf into gvs_tvuvf

where fehgr = 'RR'.

• and tbnam = 'TVRRUR'

• and fdnam = 'SAKUR'

• and statg = 'RR'

• and fcode = ' '.

lvf_subrc2 = sy-subrc.

• Populate fields

gvt_tvuvf-mandt = sy-mandt.

gvt_tvuvf-fehgr = 'RR'.

gvt_tvuvf-tbnam = 'KONV'.

gvt_tvuvf-fdnam = 'SAKN2'.

gvt_tvuvf-statg = 'RR'.

gvt_tvuvf-fcode = 'PKON'.

append gvt_tvuvf.

clear gvt_tvuvf.

gvt_tvuvf-mandt = sy-mandt.

gvt_tvuvf-fehgr = 'RR'.

gvt_tvuvf-tbnam = 'TVRRUR'.

gvt_tvuvf-fdnam = 'SAKUR'.

gvt_tvuvf-statg = 'RR'.

gvt_tvuvf-fcode = ' '.

append gvt_tvuvf.

clear gvt_tvuvf.

• insert case

if not p_inskz is initial.

if not lvf_subrc1 is initial and

not lvf_subrc2 is initial.

• insert line

insert tvuvf from table gvt_tvuvf.

if sy-subrc is initial.

• line already there

write: 'Line in table TVUVF inserted'.

else.

• Error when insert

write: 'Insert not possible'.

endif.

else.

• line already there

write: 'At least one entry already in the table TVUVF'.

endif.

else.

• delete case

if not p_delkz is initial.

if lvf_subrc1 is initial

and lvf_subrc2 is initial.

• delete line

delete tvuvf from table gvt_tvuvf.

if sy-subrc is initial.

• line already there

write: 'Lines in table TVUVF deleted'.

else.

• error when insert

write: 'Delete not possible'.

endif.

else.

• line not there

write: 'At least one entry not in the table TVUVF'.

endif.

endif.

endif.

See you Monday

[Former Member]

Hi Ofer,

I recommend you need to check the SAP OSS notes for the mentioned problems.

Some of the OSS notes I found very useful are given below, which solved most of my problems.

These notes covers the basic fundamentals of RR. Customizing guidelines.

0000423799 F1 151 -- Rev Rec Posting Error Due to Ext.Num Range for RV

0000777996 Account settings for revenue recognition process

0000782758 Prerequisits for using the Revenue Recognition functionality

0000820417 Implementation Guide for revenue recognition

0000835367 Activating SD revenue recognition

0001166848 Revenue recognition: Customizing settings

0001172799 New version of Best Practices for Revenue Recognition

Still if the issue remains, do revert back.

Regards,

Amrish Purohit

[Former Member]

Hi,

If you would like to implement Revenue Recognition I suggest you do check OSS, since there are some specific requirements, which need to be met before you can implement Revenue Recognition.

Also do some additional research around Revenue Recognition for SAP and you should be able some good documentation on how to (successfully) implement Revenue Recognition.

Some elements to think about: billing plans and billing calenders.

Regards,

Jan Pel

[Former Member]

Hi,

you can use the Servie related revenue recognition(B) in item category to achieve your requirment.

for your third question no u cannot use incoterms instead of item categories

you can carry on with the normal sales order process .

Edited by: ravinder mada on Aug 31, 2009 6:10 PM

[Former Member]

Hi Ravinder,

Thanks a lot!!

I tried Service related revenue recognition(B) in item category as you said.

I didn't know what value to use in the second field - acc. period start. Anyway I tried the three values available (blank, A and B), but with no success.

I did sales order, and when I try to deliver it I get an incompletion error about the GL account:

"ZPR0 120 G/L account 0009110000 1310010 determined from Account determination type"

These two accounts are maintain in the account determination for this CndTy, COA, SOrg, AAG and ActKy. The first account (9110000) is our regular sales account, and the second (1310010) is the deferred revenue account that should be credited.

Thanks

Ofer

[Former Member]

Hi ofer

For that G/L account in incompletion log you can go to img->sales and Distribution->basic function->account assignment/costing->Revenue account determination->Define and assign account keys

here for your condition type maintain the same account key in the accural field also.

it will solve the incompletion log problem

please revert back if it is working

bye

[Former Member]

Hello Ravinder,

Thanks a lot for your help.

I did exactly what you said for the required procedure (indeed the Accrls fields were empty for some of the conditions).

Unfortunately I still get the incompletion message about the GL account number.

Do you have any more ideas?

Thanks

Ofer

[Former Member]

hi

can you please let me know wether are u able to do billing and reveue postings in VF44

and can you please explain me wether are u using any routines in your pricing procedure

thanks

[Former Member]

Hi,

About your first question (VF44) - no, I cant do billing using VF44. I run it but it's empty.

About the routines, I dont know.

Thanks

Ofer

[Former Member]

Hi ofer,

My question is wether you are able to do billing and is accounting documents are getting generated or not.

if you are unable to do billing what error are u getting.

please let me know

ravi

[Former Member]

Hi,

I can not do the billing document.

I get the same error of the invomplition log about the GL account.

Thanks

Ofer