Entering content frameFunction documentation Determining Revenue Recognition Methods Locate the document in its SAP Library structure

Use

Revenue recognition methods are determined using the settings in the item category. By setting up two fields, you can determine what type of revenue recognition is used. These two fields are Rev. recognition and Acc. period start

You maintain these fields in Customizing. Choose:

Sales and Distribution -> Basic Functions -> Account assignment/Costing -> Revenue Recognition

 

Choosing Revenue Recognition Methods

The field Revenue Recognition controls revenue recognition methods, which the system uses for all sales document items affecting this item category. You can use the values from the following table:

Revenue recognition methods: Options

Option

Description

Blank character

Revenue recognition in accordance with Billing

If you do not make any entries, all sales document items with this item category use the standard R/3 standard revenue recognition method.

A

Time-related revenue recognition

If you choose this option, all sales document items with this item category use the time-related method for revenue recognition.

D

Time-related revenue recognition with reference to a billing document

Time-related revenue recognition is carried out. But only for everything that has already been billed.

B

Service-related revenue recognition

If you choose this option, all sales document items with this item category use the service-related method for revenue recognition.

 

 

Choosing the Start Date of the Accrual Period

The accrual period start date determines the beginning of the period, when the recognitions should be carried out. You choose the proposed date, by entering one of the following keys in the document item category field Acc. period start. You have the following options:

Start date of accrual period: Options

Option

Description

Blank character

Not relevant

A

Proposal based on start of contract.

If you choose this option, revenue recognition proposes the start date of the item sales contract as the start of the accrual period.

B

Proposal based on start of billing plan.

If you choose this option, revenue recognition proposes one of the following dates as the start of the accrual period.

Milestone billing plan

The billing date of the first milestone

Periodic billing plan

The system uses the earlier of the following two dates.

Start date of the billing plan

Start date of the first settlement period

Note

Both fields cannot be overwritten in the document item for billing dates.

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