You can control revenue recognition in your company so that you fulfill the requirements stipulated by the IFRS (International Financial Reporting Standards) and U.S. GAAP (U.S. Generally Accepted Accounting Principles) as best as possible.
Note
The revenue recognition functions have a strong impact on how revenues are accrued and posted.
To ensure that the system is stable and is configured correctly, SAP offers a free service for checking your revenue recognition settings. For more information about booking this service, see SAP Note 820417
Implementation Guide for Revenue Recognition
.
Activation Using SET/GET Parameters
Before it was possible to control revenue recognition using the activation indicator
Activate Customizing for Revenue Recognition
, you had to use a SET/GET parameter to activate and deactivate it (SAP Note 835367).
This modification has now been replaced by the activation indicator and is no longer necessary.
When you execute the Customizing activity for activation, the system checks if you have already activated revenue recognition using the SET/GET parameter.
If it has already been activated using the parameter, the system automatically sets the activation indicator to active.
Once you have saved your settings in the Customizing activity
Activate SD Functions
, the system exclusively controls the activation and deactivation according to the settings in the Customizing activity.
You can remove the modification from SAP Note 835367.
The accounting documents that are created in revenue recognition can be compressed on the basis of the summarization logic in Financial Accounting.Your financial accounting manager and possibly your external auditor should approve the document compression . For more information, see the system documentation for the activation indicator.
You enable the functions for revenue recognition in Customizing for
Sales and Distribution
, under
If you set the indicator
Activate Customizing for Revenue Recognition
indicator, you
determine that the functions for revenue recognition are controlled by the settings in Customizing.
If this indicator is set, you can flag item categories as relevant for the revenue recognition process and make other settings for revenue recognition.
If you remove the activation indicator, you can no longer change the Customizing settings.
In this case, revenue recognition is not influenced in the current business processes as long as the item category used was set as relevant for the revenue recognition process.
Future business processes are then based on the current Customizing settings for Revenue Recognition, which cannot be changed.
If you want to adjust the current settings due to changed conditions, you must reset this indicator.
You can also decide if you want the system to compress accounting documents that are created in revenue recognition. Compression takes place according to the summarization logic in Financial Accounting.
Activation and deactivation are only relevant for the
Revenue Recognition
application with the
Post Revenues
(VF44) and
Cancel Revenues
(VF46) transactions.
When accounting documents are posted using revenue recognition (transactions VF44 and VF46), it is possible that an accounting document with a greater number of revenue lines to be posted is transferred to Accounting. These revenue lines are summarized in Financial Accounting and a compressed accounting document is thus created. For more information about the summarization logic, see the SAP Note 940784.
Once you have set the activation indicator, you can control the revenue recognition process in more detail. You make these settings for the following process steps:
Revenue Recognition
Billing
For more information, see Control Revenue Recognition Based on IFRS/U.S. GAAP .
There is no additional authorization check in the standard system. As long as you do not create an implementation, every user who has authorization for changing Customizing settings can make settings for revenue recognition.
So that only a restricted user group can execute this activity, the
BAdI for Activating Functions
BADI_SD_FUNCTION_ACTIVATION runs authorization checks. That way you can prevent users from changing or adding activation information.
You can implement the BAdI in Customizing for
Sales and Distribution
under
.