deferred revenue from sales
i have the following scenario.please help in finding a solution
1. a service contract is created and billed to the customer at the beginning of the contract start
2. the invoice value is not posted to sales revenue account but to a deferred revenue account
3.every month a part (one twelveth) of the invoice value is transferred from deferred sales revenue account to revenue account
can we implement the whole procedure through pricing procedure. if so how........if not what is the solution
thanks in advance
Karan Bhatia replied
Yes this can be done through revenue recognition in which you can realize the part of revenues from deferred to revenue accounts.
Perform the following settings:
1) Set revenue recognition for item categories.This can be done by following the path spro
sdbasic func -account assn/costing-revenue recognition.
2) Once the first step is done you need to set account assignment for this.Following path wud be useful spro
sdbasic func -account assn/costing-revenue recognition---maintain account determination.
3) Here you need to assign revenue and deferred accounts.There wud be 2 columns .In first column put your revenue account and in second column put your deferred account.Your defferd acc should be a balanced shhet account and your revenue account should be a P&L acc.These settings can be done by FI consultant in t-code FS00.
4) Create your service contract and then invoice and when your accounting document wud be generated,these will be passed to your deffered account.
5) In order to pass them to revenue acc goto t-code VF44 and here you can select you invoice for which you want to pass the figures to revenue accounts.
This whole scenario wud solve your problem.
Reward points if it helps.