Revenue Accounting and Reporting

[former_member264745]

Hi Experts,

We trying to implement Revenue Accounting and Reporting 1.0 in Ehp5, but some how we could not able to complete.

We have done complete configuration and able to process document form Raw status to Processable but its not completing means Revenue contract not creating in system.

While processing Revenue Accounting Items we getting below error even we maintained Performance obligation.

Performance obligation to be fulfilled could not be determined (SDFI/XXXXXXXXX2016000001)

Message no. FARR_RAI627

Kindly let me know solution for the above issue, or need more information

Regards

Mallesh

[Former Member · Accepted solution]

Hi Mallesh

Will you be able to share with me as to what you have had configured? So, I can help you to look into this, preferably if you can provide me with all configurations you have been done thus far.

Thanks

TS

[former_member264745 · Accepted solution]

Hi TS,

Thank your time and reply. Found solution my self and now I am able process RAR end to end.

Regards,
Mallesh

[Former Member · Accepted solution]

I got a quick question. I hope you will be able to help me out on this RAR configuration.

(1) Can you please tell me as to which account determination I need to configure? for example, do I need to configure for recognised revenue, contract asset, contract liabilities etc? Do you know what it mean by the definition of 'Derived Account'?

(2) How can I configure the POB in DT_PROCESS_POB? can you please give me an example? for example, if I got 3 item categories in one sales order, how this can be setup for one to be main and the others not?

(3) I got this following message:

(a) Standalone selling price of performance obligation $000000000000001 not specified

(b) Required field 'Fulfillment Type' of performance obligation $000000000000001 is empty

(c) Required field 'Event Type' of performance obligation $000000000000001 is empty

(d) Perf. obligat. $000000000000003 must have exactly one pricing condition marked as Main

(e) Contract contains inconsistent data; see log for details

I appreciate it if you could help me out on the above issues I have had.

Thanking you in advance

ELTS

[Former Member · Accepted solution]

Hi Mallesh

I got a quick question - with reference to your below email to Victor, did you manage to resolve this issue? I got the similar problem like you did - I may need some guidance from your end. I appreciate your help on this.

Thanking you in advance

Ethan

=================================

Hello Victor,

Thanks for the reply,  I am able to create contract but with zero value only and still below issue are facing.

1. Fulfillment event and and type not updating even though settings maintained in

DT_PROCESS_POB in application FARR_AP_SD_PROCESS_TEST

2. I did manually update event type and fulfillment type but when reprocess done again data resetting in contract.

Kindly let me know where went wrong.

Regards

Mallesh

[former_member264745 · Accepted solution]

Hi Ethan,

For Q 1. You need create separate set of GL accounts to post recognized revenue as per IFRS guideline when performance fulfillment completed  hence we need to maintain in GL account in derived field. ( Postings will be updated in derived GL from RAR to FI)

Q2.  DT_PROCESS_POB: For this you need to copy of FARR_AP_SD_PROCESS_TEST BRF+ application and maintain decision table ( in this table we need updated like customer, material and PoB)

Typically looks like this.

Q3. Once you maintain the settings in DT_PROCESS_POB table you will get these error massage.

Hope this will help you.

Regards,

Mallesh

[Former Member · Accepted solution]

Hi Mallesh

Thank you for your swift responses

Kindly refer to my reply to your answers:

For Q 1. You need create separate set of GL accounts to post recognized revenue as per IFRS guideline when performance fulfillment completed  hence we need to maintain in GL account in derived field. ( Postings will be updated in derived GL from RAR to FI)

I would like to seek for your advice on the following:

For Recognised Revenue - Reference Account = Sales Revenue (P/L) and Derived Account = ? (P/L)

For Receivable Adjustment - Reference Account = Accounts Receivable (B/S) and Derived Account = Accounts Receivable Adjustment (B/S)

For Revenue Adjustment for Allocation Effect - Reference Account = Sales Revenue (P/L) and Derived Account = ? (P/L)

For Contract Liability - Reference Account = ? and Derived Account = Contract Liability (B/S)

For Contract Asset - Reference Account = Accounts Receivable (B/S) and Derived Account = Contract Asset (B/S)

(a) Should this Recognised Revenue - Derived Account be mapped to Contract Liability - Reference Account?

(b) What account should it be created for Revenue Adjustment for Allocation Effect - Derived Account?

(c) Do I need to maintain the other account determination for Deferred Cost, Recognised Cost, Revenue Adjustment for Linked PO, RoR, Deferred Revenue, and Unbilled Receivable? as I just need to activate the IFRS and not US GAP. If yes, what reference account and derived account should it be mapped?

Q2.  DT_PROCESS_POB: For this you need to copy of FARR_AP_SD_PROCESS_TEST BRF+ application and maintain decision table ( in this table we need updated like customer, material and PoB)

I've copied and created this copy of FARR_AP_SD_PROCESS_TEST to ZFARR_AP_SD_PROCESS from BRF+ application. Again, I've also maintained all decision table in DT_PROCESS_POB as what you have had shown me. For those POB name and type, I was copied from my RevRec IMG config - Define POB Type. However, I am still having the same problems when I tried to process those RAI. Is it something I missed from this BRF+? Should i also need to maintain the other Decision Tables? if yes, which one?

I do appreciate your guidance on this.

[former_member264745 · Accepted solution]

Hi Ethan,

My understanding is in standard  BRF+ application Enabled not marked for DT_PROCESS_POB in Rulesent. Please make it enable and try again.

[Former Member · Accepted solution]

Thank you Mallesh for your tips. It works.

Can you also advise me on the account determination? so I need to make sure my understanding on the account determination is correctly setup.

I do appreciate your valuable guidance on this instance

Thanks

Regards

Ethan

[Former Member · Accepted solution]

Hi Malesh

Do you ever encounter the below issues?

Perf. obligat. $000000000000003 must have exactly one pricing condition marked as Main

Thanks

Regards
Ethan

[Former Member · Accepted solution]

Hi Malesh

I got a quick question.

Do you know what should i setup in the SD pricing condition? or is it something I missed in my RAR configurations?

Apparently, I've created the pricing condition type for ZPRI - selling price. However, the other new pricing condition type for ZSSP - standalone selling price was inactive. As part of my RAR configuration, I did setup the ZSSP as standalone selling price. In view of the new condition type - ZSSP is inactive, I will only be able to see this ZPRI as a contractual price in my worklist and the standalone price column is empty.

Appreciate your help on this

Thanking you in advance,

Ethan

[Former Member · Accepted solution]

Hi Malesh

I got this quick question. i hope you will be able to assist me on this.

When I tried to make this revenue accounting posting, I got this message which I was unable to make the posting. I was wondering if you could enlighten me on this matter.

Step 1 started (program FARR_REVENUE_POSTING, variant &0000000000009, user ID XXXX)

Message No. 00550

Diagnosis

The system outputs this message at the start of every job step and is therefore usually located in a job log.

This message means that step 1 is currently being started. The additional parameters give further details on the step itself:

- the ABAp program executed in this step (here FARR_REVENUE_POSTING)

- the corresponding parameter (here &0000000000009)

  If this field is empty, then program FARR_REVENUE_POSTING does not need any parameters.

- the name of the user with whose authorization program   FARR_REVENUE_POSTING is executed (here XXXX)

Appreciate your help on this

Regards

ELTS

[former_member264745 · Accepted solution]

Hi,

I understand that you are executing Job process to post the revenue accounting. If not please  let me know what step you are executing.

You could try to process by Revenue Posting Run  revenue contract. Hope you will get issue in this way. If you done already in this way then you could ignore.

Regards,

Mallesh

[Former Member · Accepted solution]

Hi Mallesh

Yes. You are correct. I am trying to execute this job process to post the revenue accounting. However, I got an issue as to why the revenue in the POB level was not recognised when I tried to post the good issues.

For the POB, I have set the event type - Event Based with the fulfilment type - Goods Issues. I m expecting my revenue that to be recognised after the execution on post goods issues - is it something I did it wrong?

Can you please advise me on this matter?

Thanks

ELTS

[Former Member · Accepted solution]

Hi Mallesh

When I performed the FARR_RAI_MON for the sales operational item - header id (sales order), I was unable to see Revene Accounting Class for SD02 and SD03. Is it something I missed in my RAR inbound processing configuration? if yes, can you enlighten me up on this? it seems like it didn't trigger the SD fulfilment items and SD Invoice items.

Thanks,

Regarsd

ELTS

[Former Member · Accepted solution]

Hi Mallesh

Do you know if there is something I missed in Revenue Accounting Class for SD02? I did manage to fix the SD03. However, when we tried to perform the good issues in SD, I was unable to trigger the SD fulfilment item for SD02.

In other words, I was unable to recognise the revenue in my revenue schedule after I have posted the goods issue with the event type : event based with fulfilment type - Goods Issues

Please help

Thanks

Regards

ELTS

[former_member264745 · Accepted solution]

Hi  ELTS,

To update/ recognize revenue you need follow below steps

1. If revenue  based on the goods.

   a.  Create sales order-  Process the order in FARR_RAI_MON  in this step system will create

         Revenue contract and PoB

   b.  Post goods delivery- Process the delivery document in FARR_RAI_MON in this step in RAR         system will update as fulfillment completed and revenue recognizance will happen in same           revenue contract and same PoB

   c. Post inovice - rocess the delivery document in FARR_RAI_MON in this step in RAR                      system will update as invoice completed  in same revenue contract and same PoB

Execute the above steps then you could find the Revenue Accounting Item classes  SD01, SD02 and SD03. Hope this will help you.

Regards,

Mallesh

[Former Member · Accepted solution]

Thanks Mallesh for your reply.

I did the same steps as what you have mentioned in reply.

Unfortunately, when I did the post goods delivery, it didn't show it in FARR_RAI_MON as SD02 - Fulfilment Item. As such, the revenue wasn't recognised in the revenue contract.

Do you know as to what I missed in my RAR1.1 configuration?

Thanks,
Regards

ELTS

[former_member264745 · Accepted solution]

Hi ELTS,

I guess there will be massage while transferring the order item to RAR. You could have a massage when you processing the sales order item, and you can find the error massage on top by opening the contract.

Please confirm.

[Former Member · Accepted solution]

Hi Mallesh

When I tried to post the good issue (delivery), the RAI - SD02 was not appeared in FARR_RAI_MON. As such, I won't be able to process this item as fulfilment item. In this instance, it won't appear in my revenue contract as part of the fulfilment.

I was wondering if there is something I have missed in my configuration setting as I got this RAI - SD02 item being activated.

FYI - this revenue contract has its correct fulfilment type - Event Based and event type - Goods Issue.

Thanks

Regards

ELTS

[former_member264745 · Accepted solution]

okay, Please check the function  DT_PROCESS_POB by simulating whether you are able get the expected results. And also re verify the BRF+ application whether all related application activated or not.

Regards,

Mallesh

[Former Member · Accepted solution]

Hi Mallesh

I have already simulated the function DT_PROCESS_POB. The result has shown as below, with the expected result. Please let me know if this is correct expected result.

I have also verified all BRF+ app which have already been activated

Regards

ELTS

[former_member264745 · Accepted solution]

Hi

Please check for SD02 was it interface generated correctly or not in  Revenue Accounting->Inbound Processing->Generate Interfaces for Revenue Accounting Item Classes...

Regards

Mallesh

[Former Member · Accepted solution]

Hi Mallesh

I checked this SD02 in the Revenue Accounting > Inbound Processing. Its fully activated.

Can you please let me know if there is another way to validate this interface has been generated correctly?

Thanks

Regars

ELTS

[Former Member · Accepted solution]

Hi Mallesh

I checked the configuration - Generate Interfaces for RAI classes. Please see the screen below:

It seems like all are active and released for productive use. I have also re-generated this RAI class for SD02.

Again, I was wondering if we do need to define Modifiable Fields for RAI. If yes, do you know what needs to be modified for SD02? Is it something I missed out for this SD02?

Thanks,

ELTS

[former_member264745 · Accepted solution]

Hi ELTS,

Please check uploading rules for SD02 in SPRO->Financial Accounting (New)->Revenue Accounting->Inbound Processing->Revenue Accounting Items->Assign Upload Rules to Revenue Accounting Item Classes. You might have missed this step for SD02  and SD03

Regards,

Mallesh

[Former Member · Accepted solution]

Thanks Mallesh

please see below - is this something I missed ?

Regards

Ethan

[Former Member · Accepted solution]

Hi Mallesh

Just another quick question - is it something i missed out from the below SD/RAR configuration? I did maintain it with the correct sales order type and item category. When I checked on my outbound delivery document, the item category was shown.

Regards

ELTS

[former_member552009]

Can anybody help me regarding the questions/challenge in the picture?

Many thanks

[Former Member]

Hi Kenan

With reference to your questions as listed in the diagram, kindly refer to my response below:

(1) This is solely depending on the accounting principle you assigned to the company code as to whether its invoice due date-based calculation or invoice date-based calculation. For invoice is paid, this is based on the SD03 billing item where it will trigger based on the standard SD billing process. However, you need to ensure that you have activate the billing items for revenue accounting in the SD/RAR integration components.

(2) SAP RAR will perform the revenue recognition calculation based on the date of SAP RAR posting run. When the payment arrives after 7 days, if you do perform another SAP RAR runs, it will offset the revenue recognition entries

(3) SAP RAR will perform the revenue recognition based on the actual date of SAP RAR posting run. You should run this SAP RAR posting run as part of your month-end processing activities. SAP RAR will calculate the correct revenue recognition amount and also post it to the correct contract asset or liability account (however, you need to ensure the correct account determination has been setup).

Regards

Ethan

[former_member552009]

Hi,

can anybody tell me the difference between a

contract asset and an unbilled receivable

and

contract liabilty and deferred revenue

?

So what I recognized is that it depends on the calculation method which account determination from brf+ is used. When I choose the Invoice due date-based calculation the contract asset/contract liab. accounts are determined. When I choose Invoice date-based calculation the unbilled receivable/deferred revenue accounts are determined.

So, what is the reason behind? What is the business background?

[Former Member]

Hi Kenan

The differences for Contract Asset/Unbilled Receivable AND Contract Liability/Deferred Revenue are subject to the accounting principle method you choose.

Invoice Due Date-based calculation is typically used when the applicable accounting principle requires that the user book contract liability and contract asset based on the invoice due amount.

Invoice Date-based calculation is typically used when the applicable accounting principle requires the user book unmilled receivable and deferred revenue based on the invoice amount.

To further explain this:

Current US GAAP - unbilled receivables arise when revenues have been recognised as the performance of contract work is being performed but the amount cannot be billed under the terms of the contract until a later date. Billings in excess of costs and estimated earnings represent obligations for work to be performed with the exception of when billing exceed total estimated costs at completion of the contracts plus contract profits earned to date.

Current IFRS - A contractor may have incurred contract costs that relate to future activities on the contract. Such contract costs are recognised as an asset provided it is probable that they will be recovered. Such costs represent an amount due from the customer and are often classified as contract work in the process. Advances received before the related work has been performed are recognised as a liability.

For the new standard

The entity should present either a contract asset or a receivable depending on the nature of the entity's right for its performance, if any an entity recognises revenue before the customer pays consideration.

(1) Contract asset is an entity's right to payment in exchange for goods or services that the entity has transferred to a customer, when that right is conditioned on something other than the passage of time (e.g. the entity future performance)

(2) Receivable is an entity's right to payment that is unconditional.

If a customer makes a payment or an amount of payment is due before an entity satisfied its performance obligations, the entity should present that amount as a contract liability. A contract liability is an entity's obligation to transfer goods or services to a customer for which the entity has received payment from the customer.

[Former Member]

hi, i wonder if i activate revenue accounting and reporting, does it have some impact on the process of SD? and what 's the relation renvenue post with account determation by obyc?

[Former Member]

Hi Frank

If you have activated the SAP RAR, it won't be any impact to your existing SD processes. If you needs to perform the revenue recognition via SAP RAR, you need to configure the SAP RAR/SD integration components where the SD document type, item category, etc needs to be included. Again, the SAP RAR has its own Account Determination which used to drive the revenue recognition postings, where the posting will be made to the contract asset/liability etc. It will not be configured in T-code: OBYC.

Cheers

Ethan

[Former Member]

This message was moderated.

[Former Member]

Hello Fu

All SD postings made via outbound delivery and billing will not be impacted the SAP RAR. For all SAP RAR postings, it needs to be setup via the RAR account determination where you need to maintain it via the BRF+ application.

RAR postings will only be made when you have performed the SAP RAR posting runs where it will calculates the contract liability and contract asset etc, only if you have setup the SD/RAR integration components correctly

Thanks

Regards

Ethan

[Former Member]

thank you for your kindly reply

[sanjana_lingras]

Hi Mallesh,

We are facing similar issue in Revenue accounting and reporting. We have maintained DT_PROCESS_POB and DT_PROCESS_SSP decision tables. Still our transaction price is coming as 0.00. Please let us know are we missing anything in BRFplus or configurations.We will appreciate your quick help.

Regards,

Sanjana

[former_member264745]

Hi Sanjana,

Please do not maintain price condition in SPRO->Financial Accounting (New)->Revenue Accounting->Revenue Accounting Item Management->Define Condition Types for Standalone Selling Price and Right of Return. Then create no sales order process now you will get the transaction price.

Regards,

Mallesh

[Former Member]

Hi Mallesh

Its a good news to know you have managed to address your issue.

I got a question - Is it possible if you could share the RAR configuration guide with me? It would be quite helpful to me.

Thanking you in advance

Kind regards

TS

[former_member552009]

Hi Mallesh,

I don't have a solution for your issue yet sorry but I was interested in exchanging opinions and experiences with you as we are implementing SAP RAR 1.1, too. Could you give me a short step by step explanation how to actually start the customizing? I already did some things but not sure if correct and I don't see the dependancies yet.

So what about the Classes for RAIs?

What about BRF+?

What about performance obligation types?

What about Contract Categories

etc etc.

Would really appreciate your help and hope to help you too at a later stage.

Regards

Kenny