Revenue Recognition concept in SAP

[Former Member]

Hi.

I know what is revenue recognition.

My requirement is Can somebody give me some live examples of revenue recognition and places where to configure the same in SAP.

I have also collected some data from help.sap.com.

Hope some more inputs by the consultants here.

Regards

Aravind

[Former Member · Accepted solution]

Hi Arvind,

I can say one live example -- Monthly journal subscription.

Normally, we pay yearly subscription amount but the amount of revenue would be recognised monthly on delivery of journal every month.

Regards,

Murali

[Former Member]

Thank you all for your answers. Were really helpful.

Regards

Aravind

[Former Member]

Hello

I have not worked on these topics, but check these notes

820417 - Implementation Guide for Revenue Recognition

779365 - Best Practice document for revenue recognition

Regards

[Former Member]

Hi Suresh,

Where do one look for these notes????

[Former Member]

I have worked on revenue recognition in 2 areas - Project systems (using Results analysis) and SD (for periodic billing)

In projects, you can use results analysis to recognise revenues (or cost - depending on what kind of results analysis you want to perform). In this case, based on Percentage of completion of cost (actual cost / planned cost) the system can accrue or defer revenues.

In SD, you have periodic billing that uses revenue recognition. For e.g. you provide an annual service to your customer, for which you bill him in advance. At this point, the accountign entry would be

Dr. Customer $12000

Cr. Deferred revenues (balance sheet) $12000

The revenue recognition program (VF44) will be run monthly which will then recognise the revenue proportionately:

Dr. Deferred reveneus (balance sheet) $1000

Cr. Revenue (PL) $1000

Hope this helps

Praveen

[Former Member]

Hi Praveen,

What about the associated costs? I have a scenario to disucss. Could you mention your mail or email at;

nma_ama1973@yahoo.com

[Former Member]

HI Praveen

This is Mahesh,I am looking some information on Revenue Recognition and Result Analysis

in Project system, could you give some information abt these topics

any material

preparation guidance

Regards

Mahesh