Use

To be able to use revenue recognition, you should select several special general ledger accounts. Choose: Sales and Distribution -> Basic Functions -> Account assignment/Costing -> Revenue Recognition

Determining the Revenue Account

Revenue recognition uses revenue account determination. To set up revenue account determination, use transaction VKOA.

Determining Non-Billed Receivables Accounts

The account for non-billed receivables is a special general ledger account, used to determine revenue which has been implemented but not yet billed.

If you want to set up an account, join an account with non-billed receivables together with a customer reconciliation account which is a part of your chart of accounts. You can use the transaction OVUR for this.

The standard system has the balance sheet account 142100 for non-billed receivables in the USA and in Canada (Accruals and Deferred Income).

Determining the Deferred Revenue Account

The deferred revenue account is a special general ledger account, used to determine revenue which has been billed but not yet implemented.

The system determines the deferred revenue account for a document item using standard SD account determination. Use the transaction VKOA for this.