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 Revenue Recognition After Performance of Service


In service-related revenue recognition, revenues cannot be recognized until the service has been performed, for example, after the customer has confirmed receipt of the goods.

Various different confirmation events trigger the revenue recognition process. Revenue recognition can be carried out straight after the confirmation event, regardless of when invoicing takes place.The revenues are posted daily or per posting period, depending on how the time for posting has been defined.

You can use the following events for revenue recognition after performance of service:

  • Proof of delivery (standard)

  • Incoming invoice (third-party business transaction)

  • Customer acceptance date

  • Customer-specific event