Service-Related Revenue Recognition with & without Delivery

[Former Member]

Dear Experts,

I have a service related revenue recognition setup.

In my sales order i have 2 items:

Service (which does not require delivery) - $500

Product (which require delivery) - $500

At the start I invoice this whole sales order $1000.

I should recognize this revenue whenever I do PGI say $50 for the product.

During PGI, the revenue tables will be updated with this $50.

However I need to recognize revenue for both the service $50 as well as the product $50. Understand that the product revenue can take place because revenue table has been updated.

Hoever, how is the service being recognized?

I've gone through the SAP help but could not figure out how the service is being recognized when no PGI took place.

[http://help.sap.com/erp2005_ehp_03/helpdata/EN/59/aff239d85c11d199d60000e8a5bd28/frameset.htm]

Appreciate if some experts could throw some light.

Thanks

Chelsea

[Former Member]

Hi Chelsea,

The revenue is recognised based on the revenue recognition category.

In the sales order, double click on the item, then go to billing document tab page.You can see the "Rev.recog" field out here.

1.If the rev.recognition category maintained is "blank", it is standard(product) revenue.

2.If the rev.recgn category is "A", then it is time related revenue

3.If the rev.recgn category is "B", then it is service related and so on..

Following are the options available, blank, A, B, D, E, F

With Regards,

Raghav

[ranjeetrajendra_jain]

If you check item category for service TAD, you will find out billing relevance is set to B, i.e., Order related billing and status acc to order. Hence the updates would happen right after order and you can bill without delivery

The schedule line is CD i.e., with out delivery. hence ....

Would you need further details please let know..

TC

[Former Member]

Hi,

It's not about the billing.

I have already issued the invoice.

What i'm lacking now is to recognize this revenue for service in VF44.

However, since revenue table VBREVE is not being updated for service as there is no PGI, how do i recognize this revenue then?

[Former Member]

Hi,

My guess is the related condition type of serivce order should be assigned with revenue account key or revenue accounting determination should be checked whether proper posting settings are made.

If usefull kindly reward points

Regards

vK

[Former Member]

Hi VK,

I don't think so because revenue table must be updated in order for me to recognize revenue. I need to tell the system how much amount to recognize now which is $50 not $500 for the service.