Revenue-Related Events and Postings
The following section lists the activities that involve revenue postings, typical postings that are made outside Revenue Accounting for those activities, and corresponding corrective postings made by Revenue Accounting.
When an invoice is issued:
Posting Made By | Posting |
|---|---|
The logistics system | Dr: Accounts Receivable Cr: Billed Revenue |
(For price discounts) Dr: Billed Revenue Cr: Accounts Receivable | |
Revenue Accounting | Dr: Recognized Revenue Cr: Receivable Adjustment |
(For price discounts) Dr: Receivable Adjustment Cr: Recognized Revenue |
To recognize revenue when a linked performance obligation is fulfilled:
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr: Receivable Adjustment Cr: Recognized Revenue (for Linked Performance Obligations) |
To recognize cost when a performance obligation is fulfilled:
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr: Recognized COGS Cr: Deferred Cost |
To recognize the differential resulting from price re-allocation when a (non-linked) performance obligation is fulfilled:
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr: Receivable Adjustment Cr: Revenue Adjustment |
To recognize a right of return when a performance obligation is fulfilled:
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr: Revenue Adjustment for Right of Return Cr: Refund Liability |
To recognize expiration of a right of return:
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr: Refund Liability Cr: Revenue Adjustment for Right of Return |
To recognize contract liabilities at the close of the accounting period if the invoice due amount is positive (according to invoice due date-based calculation):
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr: Receivable Adjustment Cr: Contract Liability |
When revenue is recognized and the contract still has a balance in contract liability (according to invoice due date-based calculation):
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr: Contract Liability Cr: Receivable Adjustment |
To recognize contract assets at the close of the accounting period if the recognized revenue exceeds the invoice amount or the billable amount (according to invoice due date-based calculation):
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr: Contract Asset Cr: Receivable Adjustment |
At the close of the accounting period if the contract still has a balance in contract asset and the invoice is issued (according to invoice due date-based calculation):
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr. Receivable Adjustment Cr. Contract Asset |
At the close of the accounting period if the total recognized revenue exceeds the total invoiced amount up to this period for that contract (according to invoice date-based calculation):
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr. Unbilled Receivable Cr. Receivable Adjustment Note: The amount in excess of the total invoiced amount is posted as Unbilled Receivable. |
At the close of the accounting period if the total invoiced amount exceeds the total recognized revenue within this period and the balance is positive on the debit side of Unbilled Receivable (according to invoice due date-based calculation):
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr. Receivable Adjustment Cr. Unbilled Receivable Note: The debit side of Unbilled Receivable is cleared. |
At the close of the accounting period if the total invoiced amount exceeds the total recognized revenue up to this period for that contract (according to invoice due date-based calculation):
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr. Receivable Adjustment Cr. Deferred Revenue Note: The amount in excess of the recognized revenue is posted as Deferred Revenue. |
At the close of the accounting period if the total recognized revenue exceeds the total invoiced amount within this period and the balance is positive on the credit side of Deferred Revenue:
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr. Deferred Revenue Cr. Receivable Adjustment Note: The credit side of Deferred Revenue is cleared. |
If the contract involves foreign currencies and the balance of the Receivable Adjustment account is changed following postings made to certain accounts (such as the Recognized Revenue, Contract Liability, Contract Asset, and other accounts involved in invoicing), the exchange difference is posted as follows:
If the Receivable Adjustment account has a positive balance on the credit side:
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr. Receivable Adjustment Cr. Gain from Exchange Rate Difference |
If the Receivable Adjustment account has a positive balance on the debit side:
Posting Made By | Posting |
|---|---|
Revenue Accounting | Dr. Loss from Exchange Rate Difference Cr. Receivable Adjustment |
Note
The exchange rate difference account is configured in transaction OB09
.