Account Determination

Revenue Accounting allows you to specify the accounts that are used for the revenue postings made to the general ledger.

Features

Account Determination Rules

You can define rules for determining the accounts used for posting certain transactions. Your rules can use certain fields as the input, such as accounting principle and company code, to determine which G/L account to use for each specific transaction. The rules then output the account that is to be used.

Evaluation Order
You can define multiple rules for determining an account. The system evaluates the rules from the top down. Once the system finds a rule that returns an account, it does not continue to evaluate other rules.
Required Fields
Certain fields are required when you choose the input fields for determining the account. For example, for determining the Receivable Adjustment account, the accounting principle and company code fields are required. Therefore, you have to specify an account for each combination of an accounting principle and a company code.

Reference Accounts

For each revenue-related posting, the system provides a reference account as the starting point of the account determination process. The reference account is provided as the input of your determination rules. This account usually comes from outside Revenue Accounting and varies depending on the type of account that needs to be determined. For example, when determining the account of the Receivable Adjustment account, the system uses the Accounts Receivable account (defined in the master data of the customer record) as the reference account, so your determination rules can use that account to derive the account that will eventually be used. Your rules can disregard the reference account and use other fields as the criteria.

Base Accounting Principle

Certain account determination rules derive the target account for the target accounting principle from a reference account that exists under a specific accounting principle, known as the “base accounting principle”.

The base accounting principle is defined in the following Customizing activity: Start of the navigation path Financial Accounting (New) Next navigation step Revenue Accounting Revenue Accounting Contracts Define Global Parameters End of the navigation path

G/L Accounts and Determination Settings

The following table lists the G/L accounts to be determined and the settings that determine these accounts.

Account	Reference Account	Remarks
Recognized Revenue	The Billed Revenue account. This is the source account on the main pricing condition. Note Each condition passed from the logistics system contains a source account and a target account. These two accounts are determined by the account determination of the logistics system. The price of an item can be aggregated from multiple pricing conditions. Only one of the conditions is marked as the main condition. The reference account is a G/L account under the base accounting principle. End of the note.	This is determined by the rules in the Recognized Revenue section.
Receivable Adjustment	The Accounts Receivable account. This is the reconciliation account defined in the company code segment of the customer master record. For more information, see Defining Reconciliation Accounts. Note The reference account is a G/L account under the base accounting principle. End of the note.	This is determined by the rules in the Receivable Adjustment section.
Revenue Adjustment	The Recognized Revenue account. This is the account determined by the rules in the Recognized Revenue section. Note The reference account is a G/L account under the base accounting principle. End of the note.	This is determined by the rules in the Revenue Adjustment for Allocation Effect section. You must define rules for determining the target account for each accounting principle.
Recognized Revenue (for Linked Performance Obligations)	The Recognized Revenue account determined for its leading performance obligation. This is the account determined by the rules in the Recognized Revenue section. Note The reference account is a G/L account under the accounting principle for which the Recognized Revenue account is determined. End of the note.	This is determined by the rules in the Revenue Adjustment for Linked Performance Obligations section.
Revenue Adjustment for Right of Return	The Recognized Revenue account. This is the account determined by the rules in the Recognized Revenue section. Note The reference account is a G/L account under the accounting principle for which the Recognized Revenue account is determined. End of the note.	This is determined by the rules in the Right of Return section that have an Account Category of Revenue Adjustment.
Refund Liability	The Recognized Revenue account. This is the account determined by the rules in the Recognized Revenue section. Note The reference account is a G/L account under the accounting principle for which the Recognized Revenue account is determined. End of the note.	This is determined by the rules in the Right of Return section that have an Account Category of Refund Liability.
Refund Asset	The Recognized Cost account. This is the account determined by the rules in the Recognized Cost section. Note The reference account is a G/L account under the accounting principle for which the Recognized Cost account is determined. End of the note.	This is determined by the rules in the Right of Return section that have an Account Category of Refund Asset.
Deferred Revenue	The Recognized Revenue account determined for its leading performance obligation. This is the account determined by the rules in the Recognized Revenue section. Note The reference account is a G/L account under the accounting principle for which the Recognized Revenue account is determined. End of the note.	This is determined by the rules in the Deferred Revenue section.
Unbilled Receivable	The Accounts Receivable account. This is the reconciliation account defined in the company code segment of the customer master record. For more information, see Defining Reconciliation Accounts. Note The reference account is a G/L account under the base accounting principle. End of the note.	This is determined by the rules in the Unbilled Receivable section.
Contract Liability	The Accounts Receivable account. This is the reconciliation account defined in the company code segment of the customer master record. For more information, see Defining Reconciliation Accounts. Note The reference account is a G/L account under the base accounting principle. End of the note.	This is determined by the rules in the Contract Liability section.
Contract Asset	The Accounts Receivable account. This is the reconciliation account defined in the company code segment of the customer master record. For more information, see Defining Reconciliation Accounts. Note The reference account is a G/L account under the base accounting principle. End of the note.	This is determined by the rules in the Contract Asset section.

Note Note

Even though the account determination user interface provides you with tabs for setting the accounts for cost recognition, the cost recognition is not currently supported. The system does not post to those cost-related accounts

End of the note.