hi,
check this
The R/3 standard method for revenue recognition consists of revenue recognition at the time of billing. Companies use standard revenue recognition, if they want to post revenues in Financial Accounting, as soon as an invoice is created.
It is determined differently for different Item categories. The necessary settings are determined in CO-PA based on requirement.
In revenue recognition, you can create your billing documents and they will be passed to accountings. But in this case your customer account would be debited and deferred accounts would be credited.
The purpose of revenue recognition is that you can post all the revenues from a deferred account to sales revenue account for a particular period together for all the docs. Through transaction VF44.
If you can see your sales doc’s no. in VF44, then your revenue recognition is successful. Press on collective processing inside VF44 for posting the revenues from differed acc to sales revenue account.
Configuration part includes the setting of revenue recog. in item category by following the path SD-basic functionsaccount assignment/costingrevenue recog.
Then you have to assign G/L accounts. In the first column of assigning g/l accounts, enter your sales revenue account and in the second column enter deferred revenue accounts. Deferred revenue account is a special g/l account.
Don't forget to enter reconciliation account in your customer master as well.
It may happen that in revenue recog item categories fields may grayed out but you have to get authorization for your id from a basis guy.
In revenue recog. you can create your billing documents and they will be passed to accountings. But in this case your customer account would be debited and deferred accounts would be credited.
The purpose of revenue recognition is that you can post all the revenues from a deferred account to sales revenue account for a particular period together for all the docs through transaction VF44.
if you can se your sales docs no. in VF44,then your revenue recognition is successful. Press on collective processing inside VF44 for posting the revenues from differed acc to sales revenue account.
Configuration part includes the setting of revenue recog. in item category by following the path sd-basic functionsaccount assignment/costingrevenue recog.
Then you have to assign G/L accounts.In the first column of assigning g/l accounts ,enter your sales revenue account and in the second column enter deferred revenue accounts. Deferred revenue account is a spcl g/l account.
Don't forget to enter reconciliation account in your customer master as well.
It may happen that in revenue recog item categories fields may greyed out but you have to get authorization for your id from a basis guy.
REVENUE RECOGNITION: The point at which revenue (income) is credited to a revenue account in General Ledger. There are three possible types
Time-based : Revenue is recognized in equal proportions between specific start and end dates based on the number of posting periods defined at the company level. Revenue recognition for time-based documents can occur before, during, or after the invoice process.
Performance-based : Revenue is recognized based on the occurrence of certain events such as goods issue or the performance of a service. Revenue recognition for performance-based documents can occur before, during, or after the invoice process.
Standard : Revenue is recognized at time of invoice.
chandu
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