i have the following scenario.please help in finding a solution
1. a service contract is created and billed to the customer at the beginning of the contract start
2. the invoice value is not posted to sales revenue account but to a deferred revenue account
3.every month a part (one twelveth) of the invoice value is transferred from deferred sales revenue account to revenue account
can we implement the whole procedure through pricing procedure. if so how........if not what is the solution
thanks in advance
Yes this can be done through revenue recognition in which you can realize the part of revenues from deferred to revenue accounts.
Perform the following settings:
1) Set revenue recognition for item categories.This can be done by following the path spro
sdbasic func -account assn/costing-revenue recognition.
2) Once the first step is done you need to set account assignment for this.Following path wud be useful spro
sdbasic func -account assn/costing-revenue recognition---maintain account determination.
3) Here you need to assign revenue and deferred accounts.There wud be 2 columns .In first column put your revenue account and in second column put your deferred account.Your defferd acc should be a balanced shhet account and your revenue account should be a P&L acc.These settings can be done by FI consultant in t-code FS00.
4) Create your service contract and then invoice and when your accounting document wud be generated,these will be passed to your deffered account.
5) In order to pass them to revenue acc goto t-code VF44 and here you can select you invoice for which you want to pass the figures to revenue accounts.
This whole scenario wud solve your problem.
Reward points if it helps.
i am stuck up.........i don't know why but the <b>Rev. recognition</b> and <b>acc period start</b> fields ar in display mode. i tried to change the setting from item category configuration, but its greyed out there also.
could you please help me sort that out
thanks in advance
I am asked to implement Revenue Recognition at my client place.
As i am very much new this Revenue Recognition Process , i have explored all the sources.
SAP best practice document and many SAP notes (820417,779366,605665,769080 and so on)
But did not end up with desired result , fortunately i saw your posts on Revenue Recognition.
Can you help me, how to activate Revenue Recognition for item category level in SD as it is greyed out at the moment.
With best regards
Did u implement Revenue recognition functionality for the service contracts.I am also implementing RR for the service contracts with monthly,quarterly,semi annualy and annually periodic billing.
Can you pl.let me know as to how exactly you implement the same
I will appreciate if you can give me your email ID so that i can ask you the question regarding the revenue recogntion.
Actually at my client's site, we are planning to activate the RR functionality at item category level . Then do you think it will be necessary to make any changes to account keys and condition types?
I would be most grateful if you could help me with a similar situation that I'm facing in my project. I want to be able to implement revenue recognition without going through the process of enabling it for item categories through an SAP release.
I understand that you have figured out a way to implement the same by just playing around with the conditions and account keys in your pricing procedure. I would be most grateful if you would share the same with me.
It goes without saying that any feasible solution would be rewarded promptly.
my email id is email@example.com
Did you got an answer for handling cost? We have same scenario implementing RR, but for some materials it is negative price (cost, not revenue). Question is how to handle this in RR? Total subscription contract value will always be positive (revenue), but some materials used in contract infact have negative prices.........