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 Revenue Recognition by Customer Acceptance Date


You use the method of revenue recognition by customer acceptance date if you create a sales document with an item that is relevant for revenue recognition.This item is relevant for billing; delivery relevance is ignored. You cannot carry out revenue recognition until the customer has confirmed the goods. As soon as you enter the acceptance date in the sales document, the service is considered to have been performed.


To use revenue recognition by incoming invoice, the sales document item must be allocated the following attributes:

  • Service-related revenue recognition (revenue recognition category B)

  • Revenue event acceptance date (revenue event type B)

Process Flow

You create an order containing an item with service-related revenue recognition.The item is relevant for the customer acceptance date.The sales document creates a revenue line that is automatically allocated a posting block at this stage. This means that the revenue cannot be recognized and is only used as a preview.

  • The revenue recognition process is triggered as soon as the customer accepts the goods (phone call, IDoc).

    • The acceptance date is entered in the sales document.

    • The system recognizes that the service has been performed.

  • The block indicator is removed automatically and the posting is made. The revenues are posted on the debit side of the account for unbilled receivables, and the offset posting is made to the credit side of the revenue account.

    The block indicator can be reset manually using the Post Revenues transaction (VF44).

  • Invoicing can take place regardless of when a service was performed. When the invoice is released for accounting, the amounts are posted on the debit side of the customer account, and the offset posting is made to the credit side of the non-billed receivables account.