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Example documentationExample: Sales Contract with Single-Object Controlling

 

You want to represent license sales contracts in which the payment to be made by the licensee is collected in internal orders or WBS elements, so that you can subsequently activate a proportion of the revenues in Accounting.

You can also assign a license sales contract's payment amounts to ERP cost centers.

In this case, you must activate the business function Intellectual Property Management (CRM_IPM_1).

Representation in the License Sales Contract

You create a license sales contract to sell rights to an IP. You agree to a single royalties payment of $5000 with the licensee, which is to be posted to an internal order. When creating an item in the license sales contract, you can use item category IVM1 (IPM sales rights and royalties item), or a similar item category that you define (in SAP Customizing) to represent rights and royalties for fixed conditions.

  1. Define the rights dimensions for the IP within this item.

  2. Record a royalties amount of $5000 using condition type 17FI (fixed license fee IR), or a similar condition type that you define (in SAP Customizing).

  3. Maintain the account assignment object ERP internal order and choose the internal order on item level.

    Note Note

    • Furthermore, you can distribute the revenue to different account assignment objects. The account assignment object for the item is passed down to the lower-level distribution items automatically, but can be edited for each distribution line independent of the main item. For instance, you can split the costs based on the rights territory and allocate them to different cost centers or even to different accounting objects.

    • You can use the following account assignment objects: internal order, WBS element, cost center, CO-PA.

    End of the note.
Result

When the items are released and the contract is saved, the account assignment object is specified during the posting by the follow-up processes (such as billing or revenue recognition), which post to Accounting.