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

Similar Messages

Revenue Recognition Forecast Based on Quotations

I have a requirement to create a revenue recognition forecast based on the open quotations. These quotations linked to opportunities are open for some time before being signed and provide a good basis for forecasting revenue recognition in upcoming quarters. We have many revenue recognition methods here including time based, service based, collection based, POD, and POC. I don't see much useful standard functionality in SD revenue recognition nor in results analysis for creating these forecasts from quotes.
The SD revenue schedules in tables VBREV* are not generated on quotation document lines nor on items that are not billing relevant. RA can be run in planning mode, but it is a secondary process on the saved data in CO on a cost object that must be run individually for each future period.
Not only do we need the Revrec forecast, but we want to simulate changes to our quotes and projects and immediately see the affect on Revrec. I am about to create a custom development within sales document processing to create the Revrec forecasts in a rough manner in a Z table. Before I start to code, I am curious to know if anyone else has had such requirement and has better ideas of how to accomplish this.

Hello Karl,
The Best Practices document in the Note 1172799 provides details regarding all the SAP supported processes for RR functionality.
Regards,
Raghavendra

Revenue Recognition Tied to Invoice

Hi All,
We have a following requirement to meet for our revenue recognition process. I would like to know if it is possible to achieve in version 11.5.10.2.
Currently in Oracle 11i (11.5.10.2), revenue recognition is tied to invoices. We have created accounting rules, and invoicing rules to recognize the revenue. However, since the revenue recognition is tied to invoice, we are facing the following problem.
For Example, We have a contract spanning three years duration with the total contract value of $300,000. The client pays $50,000 in first year, $100,000 in second year and $150,000 in the final year. As per the functionality in 11i, our first year revenue recognition is breaking into $4166.66 every month ($50,000/12 Months), second year revenue breaking into $8333.33 ($100,000/12 months), and the third year revenue breaking into $12,500 every month ($150,000/12 Months). Instead of this, we would like to recognize the monthly revenue as $300,000 / 36 Months, even though the invoice schedule is as mentioned earlier (50k invoice in the 1st year, 100k invoice in the 2nd year, and 300k invoice in the 3rd year).
1. Is this functionality/requirement possible to achieve in 11i ? with or without customization? if with customization, please provide details on what API/package/process/setups to be customized?
2. Is this functionality/requirement already available in R12? partially achievable or completely achievable?
Any suggestions/inputs will greatly help us.
Thanks.
Abm

Hi Abm,
You have rightly mentioned in your first note that the revenue recognition is tied to the Invoice. At given time, the amount of revenue recognized on an invoice is always less than or equal to the Invoice Amount. So, in order to recognize the revenue, you need to have an invoice.
You have mentioned in your previous note that you may generate one or multiple invoices in a year and no mater how many invoices you generate, you still want to recognize 8333.33 (i.e. 300,000/36) each month. As per standard functionality, this is not possible. Reason - Revenue Recognition is based on the Invoice and the Invoice amount. Your requirement actually gives rise to another question. If you havent invoiced the customer in the first month, what will be the accounting entry for the revenue recognition of $8333.33?
I can think of some workable solution, but first I need to understand the accounting for this.
Thanks,
Anil

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$

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

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

Revenue Recognition based on percentage of completion of work.

Hello Experts,
My customer has the following scenario for revenue recognition.
My customer sell services. So I create a project and attach to the sales contract which has mile stones for billing.
After completion of milestones, billing is triggered automatically. No issues on this part.
When comes to revenue recogntion, they recognise the revenue after the work completion and nothing related to billing.
They take forecasted manhours(planned hours) for the services and take the time sheet hours (actual hours) and calculate the percentage of completion. They apply the percentage in revenue and based on the percentage of completion, they do revenue recognition.
My questions..
1. Is this a standard functionality in SAP? My customer is in sap 4.7
2. If this is not a standard functionality, then how to tackle this issue. Is there any work around?
Any type of help would be grateful.
Regards
Srinivasan Desingh

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 :- Type A : Time Based Revenue Recognition in Contract

Hello,
I am facing a peculiar problem while creating the contract relevant for Revenue Recognition Type A : Time Based Revenue Recognition in Contract.
The Item category setting I am using is as follows:-
1.     Rev. recognition : A : Time-related revenue recognition
2.     Acc. period start : B : Proposal based on billing plan start date
3.     Revenue Dist. : A : Total Val.: Linear and Correction Value Linearly Distributed
I have already done the necessary activation of Revenue Recognition.
Done the account determination for following :-
1.     Revenue account determination (VKOA)
2.     Deferred revenue (VKOA)
3.     Unbilled receivables (OVUR)
Still when I am trying to save the contract the document goes into Incompletion asking for "GL account for item 10"
Where as in account determination analysis the system has already showing the
1.     Revenue account
2.     Deferred revenue account
Kindly guide further.
Thanks & Regards,
Amrish Purohit

Hi
you can overcome this issue of G/l account missing while saving the document is by assigning the Account key of that condition type in
img-> sales and Disrtibution->account assignment /Costing->revenue account determination-->defina and assign account keys
here you have to assign the account keys you are using for that condition type in pricing procedure against the same conditiontype in the accurals field.
this will solve your problem

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

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

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.

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

Revenue & COGS recognition process based on Proof Of Deliver (POD) & Inco-T

Hello Experts,
I have a senario and i am trying to find out the proper solution for my client, hope you people can help me in this.
Requirement :     Revenue & COGS recognition process based on Proof Of Deliver (POD) & Inco-Terms
Steps     :At present system is posting COGS at the time of Out Bound delivery and Revenue at the time of commercial invoice.
(1)     Current Requirement:
If the Inco-Term is other than Ex-works then both COGS and revenue to be posted(Recognized) based on the POD.
If the Inco-Term is Ex-works then system should post COGS at the time of Out Bound delivery and Revenue postings to happen once Commercial Invoice is Authorized.
(2) _Following are the Postings to happen in a sequential way if the Inco-Term is other than Ex-work
   a. When Out Bound delivery is authorized then system should operate the Stock in transit for customers instead of
       COGS account as mentioned below.
                 Dr. Stock in Transit-Customers
                 Cr. Respective Stock Account
Note: We understood that this provision not available in SAP at this point of time and this entry should not considered in costing for COPA
                 b. Based on the Out Bound delivery a provisional invoice(without postings) has to be generated and Excise duty entry has to be posted as mentioned below
                 Dr. Duty Paid Account
                 Cr. 23A/23C/PLA
                 C. Once the POD is received and recorded in system then the respective Out Bound delivery
                 related accounting entry has to be reversed as mentioned below.
                 Dr.COGS
                 Cr. Stock in Transit-Customers
Note: This entry should be considered in costing for COPA
               D. Once the outbound delivery (above) is reversed then the system should generate the Sales
     Invoice based on POD as the entries mentioned below
                 Dr. Customer
                 Cr. Revenue & Payable accounts
Note: We understood that this provision is available in SAP
Thanks
Rahul

Hello Karl,
The Best Practices document in the Note 1172799 provides details regarding all the SAP supported processes for RR functionality.
Regards,
Raghavendra

Service Based Revenue Recognition - Prov Account Missing when using WBS

Hi,
I´ve activated RR functionality using service based and aceptance date.
I've followed the intructions from the best practices documents and the notes:
Note 820417 u2013 IMPLEMENTATION GUIDE FOR REVENUE RECOGNITION
Note 1172799 u2013 NEW VERSION OF BEST PRACTICES FOR REVENUE RECOGNITION
Note 678260 CONSTRAINTS
Note 777996 u2013 ACCOUNT SETTINGS FOR REVENUE RECOGNITION PROCESS
Note 779366 u2013 REVENUE RECOGNITION IN THE SD MODULE
Note 1166848 u2013 CUSTOMIZING SETTINGS
Note 782758 u2013 PREREQUISITS FOR USING REVENUE RECOGNITION
Note 835367 - Activating SAP ERP SD revenue recognition
Note 1000830 - Revenue recognition through incoming invoice (third-party
Note 1025066 - Revenue recognition by proof of delivery (POD)
Note 1120297 - Revenue recognition by acceptance date
Note 1125456 - Revenue recognition due to customer-specific event
We are implementing SD, FI (using New Gral Ledger), PS, CO and MM in a company that sells projects. Therefore we're posting everything to the WBS elements.
We need to post the revenue values to the WBS elements too.
The problem is that when we create a sales order for RR indicating a WBS element and try to save it, the system activates the incompletion log saying that the provision account is missing, despite the account is in VKOA.
The strange thing is that if we use a material with profit center (without any WBS or order indication in the sales order) all the revenue recognition process runs perfectly (we save the order, VBREVK is fullfiled, VF44 is run and the invoice is done correctly).
Does anybody know why when using a WBS element in the sales order, SAKN2 field is not fullfiled and the incompletion log is activated???
Is it a program error? Or are we doing something wrong?
Quick responses will be apreciated since we need to move on within two weeks!
Thanks in advance!
María del Valle Pintor.
Moderator: This thread has been locked due to crossposting.
Please do not post the same question in different forums.

sap note 883544

Revenue recognition combined with project billed via dip

Hi all,
We are using following flow for the follow-up of some Time and material projects:
- Creation of a sales order with a material creating a project in the background
- definition of the pricing of the different resources working on the project in VK11 (material master which will be used in the dip profile)
- use of activity type and CATS to post time on the project
- use of the DP90 to bill the customer on a regular basis.
When running this flow, we are fine as long as the posting of time via cats and the billing are done in the same period (monthly billing based on time-sheet): in this case, revenues are posted via the billing in the same period than the one during which costs occurred and our CFO is happy.
But when we have to delay for any reason in the billling process (billing is not done in the same period) we would like to recognize the revenues in the same period than the one during which the costs have occurred.
We have found one result analysis method which repost on a stock account the costs occurred during the period when running the project settlement but our CFO would like to see the real revenues on a revenue account:
at settlement of the project at month end closing, following postings are requested:
- credit the turnover account; debit a balance sheet account (invoice to be issued)
at the posting of the customer bill:
- credit the balance sheet account (invoice to be issued) and debit the customer account
Did some of you already face the same problem ?
If yes, could you share with me how you solved it
Thanks a lot for your help and best regards
Bernard Dauby on Behalf of François; [email protected] (+32 478 47 20 52)

Hi all,
We are using following flow for the follow-up of some Time and material projects:
- Creation of a sales order with a material creating a project in the background
- definition of the pricing of the different resources working on the project in VK11 (material master which will be used in the dip profile)
- use of activity type and CATS to post time on the project
- use of the DP90 to bill the customer on a regular basis.
When running this flow, we are fine as long as the posting of time via cats and the billing are done in the same period (monthly billing based on time-sheet): in this case, revenues are posted via the billing in the same period than the one during which costs occurred and our CFO is happy.
But when we have to delay for any reason in the billling process (billing is not done in the same period) we would like to recognize the revenues in the same period than the one during which the costs have occurred.
We have found one result analysis method which repost on a stock account the costs occurred during the period when running the project settlement but our CFO would like to see the real revenues on a revenue account:
at settlement of the project at month end closing, following postings are requested:
- credit the turnover account; debit a balance sheet account (invoice to be issued)
at the posting of the customer bill:
- credit the balance sheet account (invoice to be issued) and debit the customer account
Did some of you already face the same problem ?
If yes, could you share with me how you solved it
Thanks a lot for your help and best regards
Bernard Dauby on Behalf of François; [email protected] (+32 478 47 20 52)

Re: Revenue Recognition billing based

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