Revenue recognition

[Former Member]

Hi,

I am working in a scenario in which invoice is created upfront and then the revenue is recognised over a period of time.Can anyone suggests in terms of what all configuration settings are necessary to go ahead in this case.

Helpful answers will definitely be rewarded.

Thanks,

Ambrish

[Former Member]

Hi karan,

thanks for your reply.

Few Questions on this:

1) If it is a standard item and while doing the setting for Time based revenue recognition do we need to refer to any sales contract and if it is then is it mandatory to have sales contract for deffered revenue recognition.

2) Any specific settings other than item category to be done to make the relevant sales docs available in VF44 for posting to revenue account.

Your revert on the same would be highly appreciable

Thanks ,

Ambrish

[Former Member]

Hi Ambrish

1) I am not sure if i understood the question correctly

I am not sure of the business requirement but if you create sales contract then you can also link a billing document directly to your contract or you can create a sales order based on your contract and thn create a billing document. I don't think it is really mndatory to have a sales contract but in normal cases we do have a contract in order to determine the billing dates. Deffered account will anyways be not detrmined in the sales order or contract. it will be determined in case of billing document so making of contract is not mandatory.It depends how the business is run

2) apart from the item category, you can do the account determination for revenue recognition

Reward if it helps.

Regards

Karan

[Former Member]

Hi Ambrish

First of all you require both FI and SD Consultants for this purpose.Though account asignment has to be done by SD consultant.

With this feature company can come to know the revenue for a particular period and can use it for reporting purpose.

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 deffered acc to sales revenue account.

Configuration part includes the setting of revenue recog. in item category by following the path sd-basic functionsaccount assnmnt/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 reconcilliation 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.

Reward points if it helps.

Regards

Karan

[former_member204513]

Dear Ambarish,

I hope I understud correctly about your requirement.

You can go for Manul release to accounting

For this Go to VOFA transaction select your billing type then go in to the detail screen of that billing document here you check the Posting block field.

Now you can able to release accounting through manually

I hope it will help you,

Regards,

Murali.