Pricing

[former_member823821]

Dear Friends

I have two queries.

1.In pricing Procedure,in a condition type having condition Class B ocurs only one .I can understand the logic that it controls the basic price and that should come only once at a time.

But I need to know the where is the settings whice prevents the multiplicity of condition clasB in calculation of Pricing,

2.I have configured the SD revenue recognition,but stil I am not aware of its Busines significance.

Can you plz guide us

Any Efforts will be highly appreciated.

[Former Member]

Hi,

Revenue recognition is a process mainly used during Service or in a place where they want all the billing document to be posted to Diferred account or to Unbilled account ie GL account.

Total value of the contract of Sales order is Splitted or Divided in proportionate and distributed monthly so that the Company will know what exactly is the month wise revenue which they are suppose to get even though the actual billing happens later and money received from the customer is later.

this will show the balances in a accurate manner instead of showing only revenue actually recieved from the customer and also the RR amount.

regards,

Sudhir

[Lakshmipathi]

1. It is an in-built program in SAP such that in a pricing procedure, if multiple condition types are having "B" as a condition class, then system will consider the last one.

2. Before posting, have you searched with this text ? In nutshell, wherever, the company is willing not to post any revenues immediately once it is billed but should be an accrual one, in that case, you should opt for Revenue Recognition. Of course, you cannot configure this on your own. You have to take the assistance from SAP and justify as to why there is a need for configuring Revenue Recognition.

G. Lakshmipathi