Revenue Recognition

1. Is it possible to use a customized document type for the revenue recognition in FI?

2. Why is a revenue recognition not possible, and why is an entry made in the incompleteness log of the order or contract?

3. How can I use the revenue distribution, and what is the purpose of the revenue distribution?

4. When is an update of the revenue recognition data required, and how do I execute this update?

5. When are the sales costs transferred to CO-PA during the revenue recognition process?

6. Why are not all fields filled in the CO document for the revenue recognition documents that are also filled during the billing document transfer?

7. Why is the account for non-billed receivables, and not the account for deferred revenues, posted in the case of revenue recognition-relevant items in the credit memo?

8. Why is monitoring of the revenue recognition data required, and how do I monitor the data?

In the standard system, the document type ‘RV’ with internal number assignment is hard coded.

You can use a BTE (Business Transaction Event) to influence the document type.
To call the BTE, use transaction SPRO to call Customizing and choose ‘Sales and Distribution -> System Modifications -> Business Transaction Events’.
From component SD-ER, choose BTE.
503111 Revenue recognition: Change posting date/document type


2. Why is a revenue recognition not possible, and why is an entry made in the incompleteness log of the order or contract?

In the case of items relevant for revenue recognition, the account determination checks whether the additional accounts required for revenue recognition can be found and whether they differ. If they are not, the system makes an entry in the incompleteness log and prevents an update of the VBREV* tables. Note that the system issues a message text in the incompleteness log (G/L account is missing) whose text does not exactly match the error situation. It is best to customize the incompleteness procedure in such a way that follow-on documents cannot be created until the document is complete.

3. How can I use the revenue distribution, and what is the purpose of the revenue distribution?

Revenue distribution is controlled using Customizing of a revenue distribution type. The revenue distribution category is set in item category Customizing and can be used in the time-related revenue recognition (revenue recognition category ‘A’). Prerequisite for the revenue distribution is a periodic billing plan.

Revenue distribution is useful if the billing schedule dates contain different billing document values, and if you want to link the distribution of revenue to billing schedule dates using posting periods in the revenue recognition. Revenue distribution is especially useful is an adjustment line item is created by a document change, and if the value of the adjustment line item is to be distributed across the posting periods that have not been recognized yet.

4. When is an update of the revenue recognition data required, and how do I execute this update?

After certain process steps, for example, the goods issue posting, the billing data transfer, the revenue recognition run or after changing the documents, the revenue recognition data that is already saved on the database must be changed and adjusted to the current values within a process that is relevant for revenue recognition. For example, after a price change.
There are two options to execute the update. You can either use the direct update, or you can select the documents for the update and then update them separately using transaction VF42 (report SDRRAV54).

5. When are the sales costs transferred to CO-PA during the revenue recognition process?

Prerequisite of a cost transfer is that the calculation schema of the sales document contains a statistical cost condition that is not relevant for accrual.
If the sales document does not contain any other CO account assignment (internal order, WBS element, sales order item) in addition to the profitability segment, the sales cost is taken into account during the revenue recognition process, and updated during the posting of revenues in CO-PA.

6. Why are not all fields filled in the CO document for the revenue recognition documents that are also filled during the billing document transfer?

The revenue recognition process accesses the revenue recognition tables and therefore the specifications they contain. For performance reasons, only the data relevant for revenue recognition exists and therefore, not all data that may be required in CO is available. In order to fill the required fields in the CO document, you can use the BTE (Business Transaction Event) in accordance with the change of the document type (see above).

7. Why is the account for non-billed receivables, and not the account for deferred revenues, posted in the case of revenue recognition-relevant items in the credit memo?

The posting logic for items relevant for revenue recognition is as follows:

a) When you create and transfer a customer billing document, the system checks whether a balance exists on the account for non-billed receivables (from a revenue recognition). If this is not the case, the posting is made to the account for deferred revenues.

b) When you create and transfer a credit memo, the system responds in the opposite way. First, it checks the balance on the account for deferred revenues and then posts it to the account for non-billed receivables.

If the revenue recognition was carried out for the entire item value, and if the credit memo was created for the billing document afterwards, a balance no longer exists on the accounts relevant for revenue recognition, and consequently, the credit memo posts to the account for non-billed receivables.

However, if the credit memo was created with reference to a credit memo request, the posting of the accounts depends on whether a reference between the credit memo process and the original SD process has been set up with revenue recognition type ‘F’ . If no reference has been set up and if no revenue recognition is carried out for an amount prior to the creation of the credit memo, the posting is made to the account to non-billed receivables.

8. Why is monitoring of the revenue recognition data required, and how do I monitor the data?

The revenue recognition data that is generated by SD processes relevant for revenue recognition result in postings in Financial Accounting, and have a direct impact on the profit and loss statement and the retained earnings. For this reason, the revenue recognition data must comply with the known accounting standards and legal requirements. To compare the revenue recognition data in SD and FI to detect possible data inconsistencies in the SD and FI modules, a regular monitoring is required.

The following transactions are available for this:
vf43, vf45, vf47, and vf48 and some FI transactions (fb03, fs10n, fbl3n).

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