Future income recognition

[Former Member]

Hi All

There is a field for delivery dates while creating sales orders , in my company most of our services will be provided in the future but we have to invoice the customers in order to receive the payments before providing the service.

What we do know is recognizing the income in the current period"when we convert the sales order into billing" then later on and before close of period we defer the income.

In this case delivery date is useless , is there anyway to give SAP the future delivery date and during the billing the system post the transaction to Balance sheet account and when delivery date become due automatically the system transfer it to income account.

[former_member200703]

Hi Ayman

i would recommend for you to post your query in below  forum related to SD

They might provide some help in case the deferral is done through  SAP

Regards

Mahmoud

[Former Member]

Hi

I don't need the system to recognize income as long long as the delivery date is in the future , so it might be just document to act as invoice and be able to send it to the customer or the system record the income in control account and reverse it to the income account once the delivery date reached.

[Former Member]

Hi,

can you clarify with example?

Up to now it's not clear if you need accrual engine, revenue recognition/revenue accounting or proforma?

You need just document in order to send to customer before payment without accounting entry?

[Former Member]

Hello, you might have better luck with this question on one of the SD forums as it has to do with billing and delivery.

Different countries have different legal requirements and you might want to check SAP functionality that was built specifically for this country.

Generally when an invoice needs to be sent to a customer ahead of time a pro-forma invoice functionality is used.