Billing Plan / Revenue Recognition

Dear Guru's
Can anybody tell me the how we can identify the Revenue Recognition in Billing .what are the Different types of Billing Plans.
Thank you
Acquire

Hi,
please check this link....
http://help.sap.com/saphelp_45b/helpdata/en/2d/bdd69ad9b411d199d80000e8a5bd28/content.htm
Regards,
venkataswamy.y

Similar Messages

Subscription,Billing Plan,Revenue Recognition and how to use Credit Memos?

We have setup in our system the above, but not sure how to setup corrections of subscriptions invoices which are billed in advance using RR.
Does anybody have any pointers or suggestions of what would be the best solution?
We are using 5 different sales documenttypes (contracts) for subscriptions which we invoice using invoice type FV, 3 which we are using RR. We are also using BOM in this sales documenttypes.
Kind regards

@quahsweekoon1
You can cancel recurring payments as shown in this guide: https://support.skype.com/faq/FA1881/
In case recurring payment already went through then you would need to contact customer service. They will check your account and if you are eligible they can issue the refund for the payment.
In order to contact customer service you will need to follow this link: http://www.skype.com/go/support.login
Here's also a guide: https://support.skype.com/faq/FA1170
If answer was helpful please mark it with Kudos and if issue is resolved mark it with solution. This will help other users find this answer more easily. Thanks in advance!

Sales Order Progress Billing and Revenue Recognition

I need some suggestions to take care of a progress billing and revenue recognition requirement. Billing and revenue recognition need to happen in parallel but on totally different schedules. Here's a sample scenario that I'd like to set up OM and AR without customization to do the following:
Sales Order $100000
Billing
Jan 06 $25000
Feb 06 $60000
Mar 06 $15000
Revenue Recognition
Jan 06 $20000
Feb 06 $30000
Mar 06 $40000
Apr 06 $10000

Hi
There is no standard functionality that support integration of Order Management and Oracle Projects Billing.
In Projects you can generate revenue based on progress. There is a form in Projects, where user may enter once a period the percentage of progress for the project.
You may want to setup the project with revenue distribution rule as event, and assign a progress based billing extension to the project.
You should develop your own code to generate projects invoices for items delivered from OM. A custom code could be loading events using API, an event for each shipment transaction in OM. Note, if you are going to generate invoices from projects, you should avoid interfacing the transactions from OM to AR, to prevent double accounting.
Dina

Data Migration of Contracts with periodic billing and revenue recognition

Hello Experts,
I am trying to develop a legacy data migration plan for Contracts with periodic billing plan and revenue recognition.
Example of the scenario is given below:
Customer signed a contract for one year starting 01/01/2009.
Customer is billed quartely, billed in advance.
SAP going live on 04/01/2009
Customer is billed for 3 months and also for initial set up fees.
Revenue recognition is done monthly.
We have to migrate this contract to SAP.
Billing document posting may be necessay as it affects revenue recognition which spans across the total contract period.
Any ideas how to do this?
Thanks A Lot
Anil
Edited by: Anil Jose on Sep 17, 2008 9:38 PM

Hi Anil
How did you manage this? We also had the same problem in one of our contracts and what we did was that we copied the contracts from the legacy with the full value. That is suppose SAP went live on 1st April, 2009 and the contract was created on 1st January 2009 for a value of suppose 100 USD, with the first billing being done on 1st Jan for 33.33 USD for 4 months. We first created the contract with a validity from 1st Jan 2009 in the new system. We billed it with a billing type that we created that did not actually create new accounting entries as the accounting entries had already been created in the legacy system. In the new system then we recognised the revenue till the go live, so that the actual value remaining of the contract reduced. Then we started the billing plan of the contract from 1st of April 2009 for the remaining amount. So next invoice was created on 1st april for 33.33 USD. Can you share your solution.
Regards
Indranill

Revenue Recognition Categary Use

Dear Gurus,
We have 7 different categories to assign to the item category for revenue recognition.
out of them I want to use option "D - used with timebased and billing related revenue recognition". so i want to know the effects
this category.
1) if I use D category can I realize revenue before the post of invoice also or I have to have post the invoice first before the VF44?
As per the description it indicates that I have to post the invoice first. But in case suppose I want to recognized revenue on the time basis only will the same category work?
2) Also I want to know as the service tax is not the part of revenue so at the time of revenue recognition in VF44 we will get the service tax amount included with net value or only net value will be realized?
Please guide me. Thanks in advance.
regards,
Sanjay

Hello Sanjay,
Use of the SAP ERP SD revenue recognition function is subject to a special release restriction see Note 820417.
Please review the Note 1172799 which has the "Best Practices guide" as an attachment, which should answer majority of your queries on Revenue Recognition.
Regards,
Raghavendra YN

Pricing procedure not to bill customer but revenue recognition

I'm looking for guidance on how to setup a pricing procedure conditions. First let me explain the situation. What happens is the customer buys say 2000 software licenses on a sales order. The customer is billed and the customer account is debited and a deferred account is credited. Now the customer activates one of the licenses. The pricing from the sales order is copied to a contract. This contract has a start and end date for the license. Now that license can start to be recognized based on the period of the line item contract dates.. The issue we have is that normally for deferred revenue billing takes places. Problem is customer was already billing on the sales order. Somehow the pricing procure has to credit the deferred account that was posted on the sales order and then credit the revenue recognition account that can be used by transaction VF44.
So on the invoice associated with the sales order Invoice from sales order
Dr Customer $1000
Cr 2370 $1000
The account 2370 is the deferred account. This part is fine.
Now we activate 1 of the licenses.
So the pricing procedure has to do the following with no billing to the custo0mer account Invoice from contract
Dr 2370 $120
Cr 2371 $120
This is the problem part. crediting the deferred account 2370 and then posting into the revenue recognition account 2371
Rev Rec – VF44 for Period1
Dr 2371 $10 Cr 4340 $10 Any ideas would be appreciated

Hi
In SD billing documents customer is always debited or credited based on nature of transaction. For posting in two different G/Ls instead of customer account there is only one possible way which I know. In free goods pricing system can post debit and credit entries to different G/Ls and these G/Ls are controlled through account keys which you assign to condition types in pricing procedure.
Do you have any Idea of free goods pricing and its posting? Explore this and give it a try. I am not sure about this because I didn't test this. You can test and see if it helps.
In this for contract item category you have to use free goods pricing which you set in item category settings in VOV7.
Thank$

Config of billing type G2 for Revenue Recognition

Hello Experts.
I have a situation where I need to configure billing of credits for revenue recognition.
For normal builling we have copied doc type SO to ZBCS and added ZTAD item category (copied from TAD) for the RR.
To do this for credits I copied doctype CR to ZBCR and assigned ZTAD item category to it.
When billing the ZBCR not I get the message "Item category ZBCR ZTAD cannot be invoiced with billing type G2".
How can G2 be configured to allow this?
This is G2's current setup.
Billing Type G 2 C red tM e m o Created by
Number systems
No.range int.assgt. 19 Item no.increment 0
General control
SD document categ. O C re dit m emo Posting Block
Transaction group 7 B il lin g doc um ent s Statistics
Billing category
Document type DG C us tom er cr ed it me mo
Negative posting N o neg at ive p ost in g
Branch/Head office C us tom er =Pa ye r/B ra nch =s old -t o p ar ty
Credit memo w/ValDat N o
Invoice list type
Rebate settlement Rel.for rebate
AcctDetermProc. KOF I0 0 A cco unt De e rm n ato n
Doc. pric. procedure
Acc. det. rec. acc.
Acc. det. cash. set.
Acc. det. pay. cards
Output/partners/texts
Output determ.proc. Z10 00 0 B il lin g Out pu t Application V 3
Item output proc.
Output Type
Header partners FK B iln g D ocu m en t
Item partners FP B il lin g Ite m
TextDetermProcedure 03 Invo c e hea de r
Text determ.proc.itm
Delivery text

Hi,
You may be maually given the PR00 in ZBCR. But in your copy control (VTFA) --> item category ZTAD --> pricing type, you may be maintained B (Carry out new pricing).
If you maintain B, you have to change it to "D ".
When you maintain B, the system will search the Pricing again in Credit memo. All manual prices will be lost.
Thanks
M. Lakshmi Narasimhan

Income recognition based on revised planned revenue

Hi,
I am facing a critical issue on PS Results Analysis and I though you can only help me, because you have worked extensively on CO side.
The client is using POC based Results Analysis and using ''Planned Revenue'' as basis of Income recognition in each perod. But two years after runnng Results analysis, they want to callculate Income recognition based on Revised Planned Revenue, instead of original Plan revenue.
When i changed the method Overall Plan from E to F in OKG3>Planned values screen, it is picking up the Revised Planned Revenue in KKA2 (Results Analysis screen) but the Periodic Profit is still calculated based on the Original Plan Revenue.
When we raise the issue with SAP they have advised, we need to define Line ID's for Revenue in OKG3>Expert mode>Planned values sub screen.
When the Planned Revenue is reduced the value is not postng to any GL element, where as the original Planned revenue is posted to Primary GL elements whiich i can see in RPSCO table .
Can you plesae advise on how to bring unassinged revenues (i.e.reducued revenue) in RPSCO table into Results analysis valuation, so that the reduction in Revenue wiill be consdered in Revenue recogniiton.
It would be really great if someone can advise on ths
thanks
Bala

Hello,
The Best Practices document alongwith the scenarios supported in standard SAP is available as an attachment in the Note 1172799.
Regards,
Raghavendra YN

Revenue Recognition in KKAK with out billing document

Hi All,
We have a requirement for revenue recongnition for Contract in SD.
We created contract for 6 months with revenue/billing of 10000 per month. When billing document is created for 30000 in first month and KKAK is executed system is giving correct results - actual revenue 10000 and accrured revenue as 20000.
Now the Client wants to show revenue even when billing document is not created. ie If KKAK is executed for fisrt month of the contract it should show 10000 as revenue.
I need help in the settings to be maintained for RA key to show the planned revnue.
Please advice.
Thanks
Satish

Hi Sai,
We are created a Contract in SD and as per the billing plan the revenue sould be recognised. If the Contract value is 60000 for 6 months and billing plan is 10000 per month then first month 10000 should be recognised.
In RA Key RA Type is E, Profit Indicator - R and Valuation basis is S.
Thanks
Satish

Plan Revenue from Billing plan..Report

Hi Expert,
If i have plan the revenue hierarchically and after that I am planning the revenue from Billing Plan ..in SLR531 Report ..which values will be come...
Is there any report where I can see all [lan values for revenue from billing plan....
Regards
RAMA. S Sharma

Not answerd but clousing the thread
Regards
Rama Shanker sharma

Re: Revenue Recognition billing based

Hi,
We need this automatic when the payment is posted using tcode f-28. And those are not billing blocks. Those are revenue recognition block. Manually we can remove the block using VA44. We want it to be automated.
Thanks
Tirthankar

Tirthankar,
What is the Business requirement on this? Billing blocks system should remove Automated or Manual.
You can achieve this by VF04, with small abap changes.
Sales Document
Bill date from
bill date untill
Bill block
Only first u want to bill
or Range of periods u want to bill
Thank$
Hidayath

Billing plan is not updating project plan revenue

Hi,
My client has scenario like he creates projects manually and when he creates any sales order, he assign this sales order to the project though account assignment tab.
The plan revenue for the project comes from sales order billing plan.
The issue is the billing plan is not updating project plan revenue. Even if there is a billing plan, project report S_ALR_87013543 shows there is no revenue.
Please tell me if there is any link between sales order billing plan and project plan revenue.
How can I resolve this issue?

Hi,
I think you have not maintained planning profile in project definition.
Goto project and check planning profile in control data.
We can create planning profile in OPSB t.code. Select the fields Quotation and sales order in +Automatic revenue planning segment+ and assign revenue element.
Now create a sales order with billing plan and check S_ALR_87013543 report.
Regards,
Chandra

Blocking Periodic Revenue recognition without billing block

Hi All,
I am posting here first time and need some help with Periodic Revenue Recpgnition.
We have scenario where User wants to control the Revenue Recognition based on some contingency flag in Sales Order. If that flag is set then Periodic monthly Rev. Recog should not happen but when user unsets that flag in SO line item then Rev Recog should happen.
I know for Service Based Rev Recog there is a solution SAP provides as Customer Event Type by which we can achieve this without stopping invoicing.
But i am not sure how to block the Rev Recog to occur for Periodic Rev Recog as Customer Event type is not configurable in Item Category with Time-Related Rev Recog (A).
Please suggest some solution on how to achieve this goal with Periodic Rev Recog.
I will give full points for any good suggestion.
Thanks
Ravi

hi
check is there any user exit or BADI available.

Cost of Goods & Revenue Recognition

Dear All,
I have a typical requirement related with the cost of goods sold (COGS) G/L account & the revenue recognition.
Under SAP best practice, the COGS account is updated together with the Inventory account when post goods issue (PGI) is done.
there are 2 scenarios here -
1. Normal Sales - delivery related invoicing. Here the invoice is created immediately after the delivery. So here the revenue & cost recognition matches.
2. Project sales - PS not being used. Just created milestones using milestone billing. Here the invoice is order related with billing plan. So the milestones are
a. 50% after order confirmation.
b. 40% after delivery.
c. 10% after installation & commissioning.
Here the revenue will be generated at three stages & the COGS will be updated after delivery (PGI).
Is there any way we can update the COGS at the time of invoice in standard SAP.....?
With best regards,
Niyaz.

Hi friend,
Pls use T-code OMJJ and OBYC to setting as stop update acct in PGI! I only know the location to impact about it! With update acct in Invoice, I need to verify again for! I will update when I cover it. Hope this help
Best regards,

Revenue Recognition based on User Status of assigned Sales Order line item

Dear Community members,
We have requirement to recognize / de-recognize revenue posted to WBS for calculation of RA, based on the 'User status' of the assigned Sales Order line item.
To elaborate requirement further -
1) WBS Element - XXX - 10 ( with operative indicator - Plan/Bill/Account Assign)
2) Sales Order(SO) Line Items assigned to the above WBS -
- SO No - 123 Line Item 10 - Actual Rev - $ 300 - User Status - EXE (Meaning this work is in progress , partial payment received thus actual revenue for RA at WBS is 'Zero'
- SO No - 124 Line Item 20 - Actual Rev - $ 400 - User Status - COMPL(Meaning this work is Complete , all payment received thus actual revenue for RA at WBS is $400
- SO No - 125 Line Item 10 - Actual Rev - $ 800 - User Status - EXE (Meaning this work is in progress , partial payment received thus actual revenue for RA at WBS is 'Zero'
As per WBS reports Actual Revenue posted to WBS XXX-10 is $ 1500 ( $300$400$800) , however since two SO line items ( SO 123 /line item 10 and SO 125 / line Item 10 ) are NOT having User status 'COMPLETE', the actual revenue posted by those line items $ 1100/- ($300 + 800) should not be included as Actual Revenue for RA at WBS level.
Thus Actual Revenue for RA at WBS XXX-10 should be $ 400 /- ( the revenue posted by SO 124/line item 20 which has user status as 'COMPLETE')
How do above can be achieved?? Is there any standard solution for this?? Is any SAP Note available for this (I too am looking for one but not found any ) ?? do we need any enhancement , Customer exit etc
Thanks in advance
with regards

Hi,
Thanks. You are right that the 'Completed Contract Method' would defer revenue recognition. However, the status checked would be of the RA object (WBS Element in this case, as RA key is on WBS and RA is being calculated on the WBS).
However, our requirement is to check the user status of the Sales Order Line items assigned to the WBS element and filter the revenues posted based on the active user status of individual Sales Order Line item.
Please give you inputs.
Thanks in advance
With regards

Billing Plan / Revenue Recognition

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