Standard Revenue Recognition - what method to choose?

[Former Member]

We are implementing RR and wonders what method for RR we should choose.

Our business process is:

Subscription contracts (different types)

Billing plans (monthly, quarterly, half-year, whole year)

Can anyone give some pointers on which one we should choose from these:

Standard Revenue Recognition at time of billing (blank) - do we need to run VF44 here?

Time based and billing related revenue recognition (‘D’)

Or are there any other methods more suitable?

Also, if we choose "Standard Revenue Recognition at time of billing" do we still need to monitor the revenue recognition data (FS10N, VF45, VF47 etc.)

[Former Member]

Hi,

If you choose standard revenue recog at the time of billing, your revenue will be recognised immediately upon billing. You dont require VF44 to be run. Infact your documents will not be available in VF44 too.

See, your requirement in contracts is periodic billing. Hence, you should configure your item categories for A - Time related revenue recognition or D- Time based and billing related revenue recognition .

If its A - you will be able to recognise revenue for the period in VF44 even if billing is not carried out. If its D- then you will be able to recognise revenue thru VF44 only once billing is done.

So depending upon your business need select either A/D.

Thanks

[Lakshmipathi]

Hi Simen

Check the links

http://help.sap.com/saphelp_47x200/helpdata/en/59/aff23fd85c11d199d60000e8a5bd28/frameset.htm

Thanks

G. Lakshmipathi

[Former Member]

I didn't find a solution to my question, to be more specific.

If we chooose standard revenue recognition (blank) for item categories, will we still be able to distribute the revenue on different months as longs as the posting periods are open?

Example:

From date in settlement is 01.10.2007

To date in settlement is 31.12.2006

Billing date is 01.10.2006

Total value is 75.000

Will using standard revenue recognition the system distribute 25.000 each month? Must we use VF44 and monitoring on FI and SD-side using this type, or do we have to chosse another (for instance type D "The value of the item is implemented in equal amounts in accordance with the accrual period for this item billing-related).")