Revenue Recognition functionality for Existing Service Contracts

[Former Member]

Hello Friends,

I am implementing the Time and Billing related Revenue Recognition functionality for the Service Contracts . I am creating the new Item category for the same and using the RR functionality in the new item category.

I would like to know as to how can we automate RR for the existing open service contracts.

[Former Member · Accepted solution]

Hi

The new item category mapped for the material has to be checked with reveune recognition if you can refer to std item category for service contracts(WVN)

There you can determine on the basis of the time period as to when you would like to recognize your revenue may be on the basis of the accrual period or may be related to time based billing plan.

This also depends on the value you eneter at the time of sales document item level.Contract start date and the end date.

This can determine the recognition for the revenue on the basis of item basis.

Just check TVAP table for WVN item category in the field revenue recognition.

I am sure this can help you in detremining your scheduled activity ..

Thanks

Saurabh

[Former Member · Accepted solution]

Hello Saurabh,

Thanks for the reply .Actually my question is What if I want to activate the RR functionality to the existing SD Contracts which are already created in the PROD system.

Because I will be creating new item category,new billing plan type,new sales doctype for Implementing the RR functionality. So what to do for the existing SD contracts .How will i be able to activate RR for those documents.

Pl.do let me know if you have any inputs for the same.

Julie

[Former Member · Accepted solution]

Julie,

First you need to consolidate the list of all service contracts that are existing in the production system and check the status that is in open stage or has not gone for billing and then then configur RR functionality on the basis of the item category used for the materail.

Step1: Go to VBAK table enter contract doc type in AUART field get the contracts that are in the system.

Step 2:Reference to the contracts that you get from the list just copy and apste in VBUK table for getting the status of the open contracts

These 2 steps will help you to determine all open contracts that are still due for billing.

Then you can incorpoarte your RR functionality for all open service contracts.

May be on the basis of billing plan or by activating in item category.

That is how it can be addressed in exsiting open service contracts.

Thanks

Saurabh

[Former Member]

Hi If u have got the solution for this issue please share it on the forum...

[Former Member]

Hi Julie,

Have you activated RR settings for existing Service contracts?

Could you please share your observation?

Babu

[Former Member]

Hi if u need any help regarding these service releated RR CONTRCTS.

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