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Former Member
Apr 28, 2014 at 07:03 PM

Pricing procedure not to bill customer but revenue recognition

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I'm looking for guidance on how to setup a pricing procedure conditions. First let me explain the situation. What happens is the customer buys say 2000 software licenses on a sales order. The customer is billed and the customer account is debited and a deferred account is credited. Now the customer activates one of the licenses. The pricing from the sales order is copied to a contract. This contract has a start and end date for the license. Now that license can start to be recognized based on the period of the line item contract dates.. The issue we have is that normally for deferred revenue billing takes places. Problem is customer was already billing on the sales order. Somehow the pricing procure has to credit the deferred account that was posted on the sales order and then credit the revenue recognition account that can be used by transaction VF44.

So on the invoice associated with the sales order Invoice from sales order

Dr Customer $1000

Cr 2370 $1000

The account 2370 is the deferred account. This part is fine.

Now we activate 1 of the licenses.

So the pricing procedure has to do the following with no billing to the custo0mer account Invoice from contract

Dr 2370 $120

Cr 2371 $120

This is the problem part. crediting the deferred account 2370 and then posting into the revenue recognition account 2371

Rev Rec – VF44 for Period1

Dr 2371 $10 Cr 4340 $10 Any ideas would be appreciated