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 Revenue Recognition by Customer-Specific Event


You use the method of revenue recognition by customer-specific event if you create a sales document with an item that is relevant for revenue recognition.This item is relevant for billing. If you have a contract with your customer that is fulfilled using release orders, the contract is billing-relevant.

You cannot carry out revenue recognition until the customer has confirmed the performed service.A customer-specific event is the release of the item for billing, for example.


To use revenue recognition by customer-specific event, the sales document item must be allocated the following attributes:

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

  • Customer-specific revenue event (revenue event type X, Y, Z)

You have implemented the following Business Add-Ins and specified the relevant event data in Customizing for Sales and Distribution :

  • BAdI for customer-specific events POD (BADI_SD_REV_REC_PODEV)

  • BAdI for displaying customer-specific PODEV documents (BADI_SD_REV_REC_PODEV_DISP)

Process Flow

You create an order containing an item with service-related revenue recognition.The item is relevant for a customer-specific event. This event creates the revenue lines, which can then be recognized.

  • The revenue recognition process is triggered as soon as the customer-specific event occurs.

  • 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.