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Grace period on leasing and Revenue recognisation over occupancy period

May 31, 2017 at 09:53 AM


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Former Member


My requirement is rent contract is for 12 months and grace period of 2 months , so in total occupancy is for 14 months. Business requirement is BP should be billed quarterly and payments of 4 cheques should be made against invoices.

But revenue recognisation should be made over 14 months, how to map this scenario.

Thanks & Regards


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1 Answer

Franz Posch
Jun 01, 2017 at 04:44 PM

Hi Gyanendra,

it seems that you are looking for linearization of revenues. Please refer to the SAP note

2255555 - Release note: Valuation of leasing contracts

Linearization is part of this functionality. Please check out the instructions of the note carefully for prerequisites and implementation needs.

Best regards,


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