How to configure the following scenario?

I have a following requirement:
I am selling an equipment to a customer and the delivery has taken place in Jan 2008. However as per the requirement I can recognize the revenue only in after installation which will be in March 2008. However I will be invoicing the customer, but the revenue will be recognized only after completing the installation. This is supported by RR, but I would like to know how to configure? Appreciate your help.

Hi,
Your scenario is for service industry involving selling of equipments first followed by installation of the same and services later on. The installation of the equipment is the triggering point for recognising the revenue and not the sale of equipment. Looks like a typical telecom scenario.
My suggestions are as below:
1) if possible, discuss this with your finance business team and move away from this scenario of revenue recognition. This scenario takes more efforts and provides less benefits. You not only need to deferr the revenue but also the cost and SAP does not support 1 to 1 mapping of the invoice for deferring the cost. (As per the matching concept in accounting, revenue and cost should be mapped in proper buckets so that the accurate margins can be calculated). If the installed base is required for some statutory reporting, you can generate that seperately from SAP by maintaining the install base.
I know this is very tough change management activity to make happen but this really has long term fruits attached to it as it simplifies your business processes.
2) Try this on your sandbox system. Use revenue recognition type as B - Service related revenue recognition. Apply a deferred account in VKOA settings for your ERL key or the revenue account key you are using. Now create the order and process it through delivery and billing. The accounting entry should post to deferred account. Run VF44 for the billing document and recognise the revenue.
This process helps you in doing the recognitoin but the only catch here is that there is no triggering point. You need to control the running of VF44 manually by generating a seperate report which can tell you which billing document to recognize from deferred account and when. If you would like to have the installation date as triggering point, then you would have to modify the Standard SAP to have some user exits placed in the revenue recognition functionality to make it happen. This i would only suggest you if you have good hands on SAP revrec both functionaly and technicaly.
I know that my answer is not going to give you a easy fix for your problem but that is the best way to go without making much of the changes to standard SAP. Feel free to contact me back in case of any questions at my email address [email protected]. If you can send me your phone number then we can have a small call where we can have more detailed discussions.
Thanks
Kapil Sharma

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