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  Revenue Recognition for Credit and Debit Memo Requests

Use

You can use this function for credit memo requests.Revenue recognition category "F" can be used for revenue recognition for credit memos with reference to the preceding document.

Revenue recognition category "F" is also valid for debit memo requests and debit memos.

Prerequisites

To use the revenue recognition category for credit and debit memo requests, the preceding document must be allocated one of the following revenue recognition categories:

  • Category A – time-related revenue recognition

  • Category B – service-related revenue recognition

Features

If you create a credit memo from a credit memo request, revenue recognition category "F" considers the reference to the SD document, such as the contract or order.For the credit memo request, a check is made to see if the referenced document is relevant for time-related or service-related revenue recognition.The credit memo process updates the revenue recognition tables for the preceding sales document, that is, a correction line is added.

As soon as the credit memo has been released for financial accounting, an accounting document is created automatically.The revenues are posted from the non-billed receivables account or deferred revenue account to the receivables account.