Revenue Recognition Full - Upon Delivery

[Former Member]

Hi All,

Current Scenario:

We are creating a contract for one year. It has billing plan in it. The Revenue recognition (through VF44) takes place every month. That means, the revenue is recognized for 12 months. This revenue recognition may happen for 12 times or for 4 times depending on some setting. I need to know that setting which will decide the number of revenue recognition.

Also, the revenue is distributed in some parts of the total value over the period of 12 months in 12 times or 4 times. I need to know that setting which helps in deciding the distribution of revenue during VF44.

Settings used in the current scenario:

The RR item category should be like this:

RR category - Type "A"

Acc. Start Period: "B"

RR type: "A"

Required Scenario:

The contract will be created for 1 year.

The moment release order is created and upon delivery, the Revenue should be recognized in full value of the contract.

We under stand form our basics that we need to have the following settings:

The RR item category should be like this:

RR category - Type "B"

Acc. Start Period: Blank.

RR type: Blank.

Please help me in getting this done.

Regards

[Former Member · Accepted solution]

Hi,

Check if this helps

http://help.sap.com/printdocu/core/Print46c/en/data/pdf/SDBIL/SDBIL.pdf

Regards,

Amit

[bcrao]

OVEP-here you need to select o RR different types of RR /per item cat.

Proposed start date- also need to mention here.

For RR cat. ;B" , you need to maintian Revenue event also.- This is available for ECC6 only.

refer Snotes: 1000830, 1025066, 1120297 and 1125456

in VKOA- You need to define seperate G/L account s for revenue account and deferred revenue accounts

in OVUR- account for unbilling account G/L need to be maintained.

Here - 2 options accural amount determination 1. reconcilation account will be taken from Customer master (payer) and billing type- see snote: 644296

Use transaction VF44 after PGI- then VF01

Thanks

Chidambaram

[Former Member]

Hi Chidambaram,

Thanks a lot for the response.

Just keeping aside the current issue in mind, there is one more requirement.

Can we have Revenue Recog Category - "B" for debit memo requests. pLease note the Debie Memo requests are created with out any reference. Then based on that the invoice (Credit Memo) will be created.

PLease help !

Regards

[bcrao]

Hi,

In case the credit/debit memo request is created in reference to an invoice, the item

category of the credit/debit memo request has to be assigned to a billing plan type

so that the credit memo request includes billing plan dates. Otherwise a start and

end date has to be entered manually.

The remaining process is same

Thanks

Chidambaram

[Former Member]

Hi Chidambaram,

Thanks for the response.

Thats fine. My concern is - Our business requirement is that the Revenue has to be recognized in full once the materilal is dispatched.

But in the case of the Credit memo and Debit memo processing there is no delivery involved in it. Then (when the Revenue Category is "B") to my knowledge, as there is no delivery involved, no revenue recog wil happen.

Please clarify !

Regards