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Former Member
Oct 12, 2016 at 04:28 AM

Revenue Recognition Based on Consumption



I am posting the question again as the earlier thread was archived.

We have a reqmt where a contract with x qty to be created and billed posting to customer AR and deferred revenue. Now the sales order will be created for 1 qty. Many orders will be created with ref to contract till all X is consumed. We need to bill this sales order and post the revenue from deferred to revenue account.

Can some one let me know if this is even possible with rev rec or we have to handle this with G/L accounts, problem with G/L account would be to not post the follow on sales order to customer. I checked various SAP docs but only option I see is using quantity contract to keep track of qty consumed and call off orders but not sure if it will work in this scenario.

Can some one help in this