Hi Experts,
We are implementing RAR 1.3 and have encountered an Issue. We are able to create Contracts/POB's andn are also getting the Transaction Price. We are able to post the revenue recognition but we are not able to post Contract Asset and Contract Liability.
Is there any setting related to posting contract assets? Or is there a relation to anything in the POB/Contract for Contract Asset to be posted?
Thanks for your answer
Ashwin Chandrasekaran
Hi
Kindly check your Accounting Principle level configuration. There you need to choose the option for 'Contract Balance Presentation' as 'Contract liability and asset' and then run the posting jobs after transferring the data from SD to RAR.
Hope it helps.
Br,
Vijay V
Hello Vijay,
Thans for your reply. However, I checked and the configuration looks ok. We have maintained the Presentation as Contract Liability/Contract Asset. Do you know any other place where we can have a look?
Thank You
Regards,
Ashwin Chandrasekaran
Hi
Did you create the contracts after you maintained the config?
Br,
Vijay V
Hello Vijay,
Yes, we created contracts after maintaining the Config. We used the sample test program which SAP has provided - RFARR_RAI_SAMPLE which creates Contracts based on the input we give.
Thank You
Regards,
Ashwin Chandrasekaran
Hi Ashwin
This works based on the invoice due date. So when you have uploaded the contracts there must already be some invoices which are due for the payment. Then when you transfer the invoices which are already and run the posting jobs you must be able to see a posting in the revenue posting job.
When you analyse this posting there will be a line for either contract assets / liability based on the scenario that you have.
In my case I have used only normal SD scenario and not uploaded using the template.
Let me know if this still doesn't work for you.
Br,
Vijay V
Hi Vijay,
We are testing the following 2 scenarios -
1. Monthly Recognized Revenue is less than the Invoiced Amount = which will calculate Current Liabilities. This scenario works and system calculates the Current Liabilities.
2. No Invoice is created in the first period and we run Revenue Transfer Program. Now, when we run the program to calculate Contract Assets, no new lines are created for Contract Assets in Table FARR_D_POSTING. Contract Assets are not calculated.
Thank You
Regards,
Ashwin Chandrasekaran
Hi Vijay,
We are unable to see the RAI's generated when we create the Contracts in SAP SD. When i try to transfer the Contract in FARR_RAI_PROC, it does not get transferred.
The process we have is as follows - We have a higher level item which is not relevant for pricing nor delivery. We have a lower level item which is relevant for pricing. We only have order based billing and no delivery is created. Time Based Fulfillment in RAR. The lower level item category is maintained for RAR.
Is there any other Decision Table I should maintain apart from DT_PROCESS_POB?
Thank you
Regards,
Ashwin Chandrasekaran
Also, we had the Old SD Revenue Recognition activated before we activated RAR. Howeve, when i try to creat a SO/Contract, we get an error that "both SD Revenue Recognition and FI Revenue Recognition cannot be activated". I thought the RAR Configuration will take precedence to the SD Revenue Recognition.
Does anyone know how the Old SD Revenue Recognition gets deactivated after we configure RAR configuration for Item Category?
Thank You
Regards,
Ashwin Chandrasekaran
Hi Ashwin
Please empty the revenue recognition setting from your Item category setting in SD.
System will check if item category is relevant for revenue recognition in SD and also if the same is activated in RAR. If you choose to use RAR then remove the setting in item category for SD rev Recognition.
Br,
Vijay V
Hello Vijay,
Thanks for your answer. However, we cannot remove the configuration for Old SD RR as the field is greyed out. The Revenue Recognition field in Item Category is greyed out. It seems SAP has to be contacted and they will only open the field for us to remove the configuration. But, is this the normal process for all the RAR Implementations?
Regards,
Ashwin Chandrasekaran
Hi Ashwin
Kindly check the below link which says how to enable the .greyed out field.
https://archive.sap.com/discussions/thread/3892350
Br,
Vijay V
Hi Vijay,
There seems to be a solution here. Thanks for sharing. But I dont see that Parameter ID in my system. Let me get in touch with the Basis and see if there is any note for this as well.
Thank You
Regards,
Ashwin Chandrasekaran
Hi VIjay,
We found the solution for Old SD Revenue Recognition Deactivation. We implemented SAP Note 2145357 which helps to deactivate the old SD Revenue Recognition and activates the FI Revenue Recognition.
Thanks for your inputs.
Regards,
Ashwin Chandrasekaran
Hi
Please mark your question as Answered as this is solved.
Br,
Vijay V
Contract asset or liability gets calculated only when your recognized amount is eiter more or less of your invoiced value. Ensure you have scenario which meets that criterion.