Revenue Recognition

[Former Member]

Hi Gurus,.

Someone please help.

My client has a requirement to recognise revenue less than that of actually billed amount through milestone billing. The balance amount will be recognised somewhere in the next period or at the end of the project.

Cost based POC method in RA might help. But client wants to recognise revenue only on the basis of actual revenue.

Please help me on this issue

Thanks

[Former Member]

Closing

[srinivasan_desingh]

Hello Anjali,

This may be a late reply but I hope this will be useful for others.

Standard POC method can be used based on Planned and actual revenue. To solve your problem, you have 2 options

1. Calculate manually outside the system and input in SAP using legacy data transfer for RA

2. Use BADI KKAG0001

The BADI contains two enhancements:

EXIT_SAPLKKAG_001

EXIT_SAPLKKAG_002

You can choose according to your business needs.

Regards

Srinivasan Desingh

[Former Member]

Hi,

If the revenue planning and recognition is periodic then I think "POC Method on Basis of Revenue Planned by Period" would be more appropriate. When a revenue milestone is achieved, system will recognize revenue against the project.

Regards

Hemant

[Former Member]

Hello Anjali,

Can you clarify more as to how revenue is to be determined?

Sourabh