Revenue recognition work around required ... URGENT !

[Former Member]

Hi,

To be able use the revenue recognition functionality built into SAP, we have to get prior approval from SAP to enable revenue recognition for item categories.

Have any of you implemented revenue recognition using just condition types and account keys by playing around with pricing procedure ?

My scenario is as follows -

We bill the customer as per a milestone based billing plan. After the completion of every milestone, an invoice is raised to the customer and sales are booked in a deferred revenue account. This happens for every subsequent milestone and deferred revenues keep getting accrued. At the end of the project when all payments have been received from the customer, the accrued deferred revenues should then be posted to the revenue account from the deferred revenue account.

How can we achieve this without enabling revenue recognition for item categories.

A working, feasible solution would be promptly rewarded.

[former_member184555 · Accepted solution]

Hi

I can send you a very good document from SAP. Give your mail ID.

Thanks,

Ravi

[Former Member · Accepted solution]

Hi Ravi,

Thank you so much for you prompt reply. My email id is srimuruganv@gmail.com

My team and I would be most grateful to you if this works.

Edited by: Srimurugan Veluswamy on Feb 7, 2008 12:37 PM

[Former Member · Accepted solution]

Dear Sankar ravi,

I am also working on that scenario. please share the document with me. my e-mail ID:anbusiva79@gmail.com

Regards,

anbu

[former_member184555]

Hi

Mail sent. Please check your mail. The document is excellent and sure will be very useful to you.

Thanks to Hollis Lane who provided me this document in this forum only.

Thanks,

Ravi

[Former Member]

Hi,

Thank you for the document Ravi. But this document assumes that we have revenue recognition active at item category level. Now, revenue recognition activation is a complex process and revenue recognition is not something that SAP offers as a part of the standard package. We have to get our process approved by SAP before they even activate it for us and then we have to provide an open connection to them with test cases so that they can test whether legal and statutory requirements are being met.

I have been told that there is a work around where we can achieve the same functionality by accruing revenues and then offsetting this with another billing document with a different pricing procedure where a 100 % discount maybe used that will offset the accrued revenues account while the actual revenues flow into the revenue account through an account determination process.

Please could you tell me if this is possible.

[Former Member]

Hi if there's an alternate solution you've found could you please share it with us? Or you could mail me at tejasatawane@hotmail.com

Thanks,

Tejas

[Former Member]

Hi,

Could someone mail the same document on my yahoo.com ID mentioned below? Or could someone attach it in this post?

nma_ama1973

Much appreciated.

Regards

Edited by: M Jamil on Apr 24, 2008 8:32 AM