Billing in SD

[Former Member]

Hi

Can any one suggest me that how i can setup this.The scenario is as follows:

My client requirement is that we will take all the amount from the customer in advance at once but we will not show this in our revenue till the time we will not provide the services against the amount paid.But we have to pay the service tax against that amount but we can not pay the tax untill we don't do the invoicing for the amount paid by the customer.So in short i have to generate invoice two times once to pay service tax and followed by billing on monthly basis to show it in my revenue. So pls suggest what i can do for the same.

Thanks

[former_member246371]

Hi,

This can be done using the revenue recognition methodology.

For example, a vendor has a service contract with a customer for one year (Rs. 100 per month = Rs. 1200 for year)

Customer pays full amount in advance (Rs. 1200)

This revenue will be recognized per month using the revenue recognition program,

The invoice generated in this case will have the taxes in it,

Hope this helps,

Thanks,

DB

[Former Member]

Hi DB

Thanks for so early reply.

Can you please detail out set up procedure step wise for revenue recognition.

As i am new to this procedure.

Thanks

[Lakshmipathi]

procedure step wise for revenue recognition

Please try to avoid asking "step by step". First you have to take some efforts to search the forum to find out whether your query has already been answered. Next to implement revenue recognition, you need to seek the permission from SAP.

G. Lakshmipathi

[Former Member]

Hi Lakshmi,

Thanks for your suggestion .I am working on it already just wanted to get the information that i am doing it in right direction or not.

Thanks