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Revenue Recognition by Proof of Delivery in ByDesign

Govind_Sharma
Participant
0 Kudos

Hi Experts,


I need your support to validate financial functionality in By Design.

Functional requirement : Ability to recognise revenue only after confirmation goods receipt by customer as per accounting standard.

Functionality validation : We have checked and found that ByDesign allow to recognise the revenue based on delivery but that delivery will confirmed at warehouse outbound confirmation only. (not on the basis of confirmation from customer)


Help center : Accrual Methods

When you start a revenue recognition run, revenue is recognized based on the assigned accrual methods as follows:


Accrual Method

Sales Order Items

Customer Return Items

Recognize at point of invoice

If the invoice has been posted, the revenue and cost of sales are recognized.

If the credit memo has been posted, the revenue reduction and the reduction of the cost of sales are recognized.

Recognize at point of delivery

If the warehouse confirmation or service confirmation has been posted, the revenue and the cost of sales are recognized:

  • The deferral of the cost of sales is reset.
  • The sales revenues are accrued.
If the goods receipt has been posted, the revenue reduction and the reduction of the cost of sales are recognized:
  • The deferral of the reduction of the cost of sales is reset.
  • The reduction of sales revenues is accrued.

We don’t have any process to accept the qty confirmation from the customer to recognise the revenue.

Business user are keen to have this feature in ByDesign, can you provide your thought on this or suggest any workaround to capture this requirement?

Govind Sharma


Note: In ECC : Revenue Recognition by Proof of Delivery - Revenue Recognition - SAP Library

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Dear Govind,

We don't have a process in ByD which confirms whether customer accepted the delivery we made.Even if there is a process atleast there is no communication to FIN.

In any case if the users want they can use Manual Entry for recognized Quantities and make an entry of the actual values once they are received at customers site. Atleast with this work-around possibly this can be acheived.

Confirmed with Development.

Thanks

Lokesh Sharma

Govind_Sharma
Participant
0 Kudos

Thanks Lokesh.

Answers (1)

Answers (1)

Former Member
0 Kudos

Dear Govind,

Am discussing your requirement with our Development and will update you soon on the same.

Thanks

Lokesh Sharma