Revenue Recognition (AR Closed for future month in error)

Need help with revenue recognition. In the month of June in AR July was opened in error, so it was put in to close pending. Since July was closed the last 3 days worth of June invoices did not have any revenue recognition for July. Instead July's revenue was posted in to August since August was showing as a future period, and July was closed. Is there any fix to change the revenue recognition without doing a credit and rebill of 3 days worth of invoicing? If we reopen June, and run revenue recognition again, will that help? Thanks in advance for any help.

Well there are a few ways you can go ahead and fix this, but it depends on lot of factors.
Lets say you have 1 invoice for which the revenue has been recognized in August and not July, now you can query up that invoice in the transaction's workbench and incomplete it. After incompleting all the revenue recognized distributions would be deleted(applicable 11.5.10 onwards) and when you complete the invoice again & run the RR program the revenue would be recognized in July(provided it's in an open status). Please note though that you can incomplete a transaction only if it doesn't have any activity against it!
Now coming to the real world it's possible that the number of transaction's you have could be quite large and doing this manually through the screen might not be feasible. So you could possibly write a small pl/sql script to loop through those invoice's and incomplete them by calling the complete/incomplete group transaction's api. And then again complete them and re-run RR program to complete the fix.
Please note though that you can incomplete a transaction only if it doesn't have any activity against it!
With posted transaction's or transaction's having other activity, it's possible to fix them too but that would be taking things too far and Oracle Support/Development would be best equipped to provide you the fix in that scenario.
HTH,
Jasmeet.

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SD Revenue Recognition-Account settings for deferring COGS

Hi Experts
In the current process, COGS, cost of goods sold is getting posted into the COGS G/L account, while creation of billing document.
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In that case, if we have to defer the COGS while creating the billing document & would recogonize it while running VF44 alone with the revenue lines, could you suggest me the account setting to be done for the same?
Anticipating earliest responses
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hi
820417 - Implementation Guide for Revenue Recognition
779365 - Best Practice document for revenue recognition
REVENUE RECOGNITION
In revenue recog. you can create your billing documents and they will be passed to accountings.But in this case your customer account would be debited and deferred accounts would be credited.
The purpose of revenue recognition is that you can post all the revenues from a deferred account to sales revenue account for a particular period together for all the docs. through transaction VF44.
if you can se your sales docs no. in VF44,then your revenue recognition is successful.Press on collective processing inside VF44 for posting the revenues from deffered acc to sales revenue account.
Configuration part includes the setting of revenue recog. in item category by following the path sd-basic functionsaccount assnmnt/costingrevenue recog.
Then you have to assign G/L accounts.In the first column of assigning g/l accounts ,enter your sales revenue account and in the second column enter deferred revenue accounts.Deferred revenue account is a spcl g/l account.
Don't forget to enter reconcilliation account in your customer master as well.
It may happen that in revenue recog item categories fields may greyed out but you have to get authorization for your id from a basis guy.
:The point at which revenue (income) is credited to a revenue account in General Ledger. There are three possible types
Time-based : Revenue is recognized in equal proportions between specific start and end dates based on the number of posting periods defined at the company level. Revenue recognition for time-based documents can occur before, during, or after the invoice process.
Performance-based : Revenue is recognized based on the occurrence of certain events such as goods issue or the performance of a service. Revenue recognition for performance-based documents can occur before, during, or after the invoice process.
Standard : Revenue is recognized at time of invoice:
The specified item was not found.
Re: Revenue Recognition
CONTRACTS
Lets take standard CQ contract type:
First maintain customer - material info record in VD51 T-code
Secondly maintain pricing for customer / material or only material combination in VK31 / VK11 T-code
Then use VA41 T-code to create a contract
VA42 to change contract
VA43 to display / view contract
In VA41, enter the document type CQ, followed by the sales area details,
Enter Sold to party.
Enter PO number
Enter PO Date
Enter Validitiy from Date
Enter Validity to Date
Enter Material
Enter Quantity say 999,999,999 or any other higher quantity as it is referred again and agaain
Hit Enter.
Save.
regards
balajia

Revenue recognition for sub-item

I have a product called Term license, when i enter this line item in sales order, automatically i should get a sub-item warranty under it (which is only for internal purposes).
And suppose the price of the product is $1000/-, 10% of the cost of this product (i.e. $100/-)will be considered as the cost for warranty for 12 months.(The warranty is not billed separately to customer, but internally the 10% of the cost is considered as cost towards providing warranty support.)
The customer gets billed only for Term Licence and the warranty piece does not show up in the invoice. The revenue for licence part gets recognized based on the milestones completions 10/70/20%. So $900 is recognized for the term licence.
Then warranty period starts once the milestone of 70% is confirmed. And from that time the revenue $100 is split for 12 months and then this revenue is recognized monthly based on billing.
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Regards,
Ajay

Hi Ajay,
As far as I understood that you want to realise the warranty amount of 100$ from the customer once your 70% milestone is completed.
I think you can start realising this amount along with the license cost with each milestone.But keep your money in the deffered account.Once your 70% milestone is reached then you can start running the transaction VF44 one by one for each line item.
In this case your revenue account will only get hit once the 70% milestone is reached.
Reward points if it helps.
Regards
Karan

Revenue recognition and error message" Missing data: Provision account Message no. VU019

Hi,
I have configured revenue recognition type "B" for my item categories and I am using BOMs where pricing is set at item level. The issue is that when I have more than one components in my BOM then I get an error message (Missing data: Provision account Message no. VU019) at the time of saving sales order though I have configured the provision account. However If I enter the same component/material in the sales order without BOM which will have same pricing data then it does not through the above error message. Please help what could be the potential issue.
Best Regards
Javed

Have you checked the Analysis from condition tab once you created a BOM? If so, what is the message you could see for pricing.
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Error while running Deferral for August month in RERX module

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Can any body help me as I am getting error while running Deferral run for August month. Error Description is
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Hi Shailendra,
please check the SAP note 1263230 and the mentioned report Z_REFX_CORRECT_ACEHEADER.
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Batch FI postings for Deferred Revenue recognition

Hi All,
The deferred revenue postings for the mantainence contranct is done through the Batch job at the month end in my project. We work on 4.6C.
Now when the contract date is 30/09/2007 to 29/09/2008 the entry for Advances form customer (Dr.) to Deferred revenue (Cr.) is made from 30/09/2007 itself.There on the entries made are on 31/10,30/11,31/12 and so on till 30/09/2008.Thus total entries are 13 (instead of 12).
However if my contract date is 1/10/2007 to 30/09/2008 the entry is made on 31/10/2007.Therefore the total entries made are 12.
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Deferred revenue (Dr.)
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Thereby at month end ( till the contract end date)
Advances from Customer (Dr.)
To Deferred Revenue (Cr.)
( Being revenue Deferred over the period )
Kindly tell me the solution so that the postings are 12 in each case.

Moderator Message:
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Discussion locked.
Thanks.

User exit for revenue recognition VF44

Subject changed by moderator. Please use informative subject in future
I am trying to find a user exit for revenue recognition tcode : VF44. Can anybody help me in finding one. I have a program to find user exits. But it couldnt list any userexit or badi.
Can anybody shed light on this.
Best Regards.
Edited by: Matt on Jan 16, 2009 11:31 AM

Hi,
check following link
http://****************/Tutorials/ExitsBADIs/ExitsMain.htm
Regards,
Madhu

Price Change for Revenue Recognition

Dear experts,
I am using Revenue Recognition of type B with Revenue Recognition before invoicing.
I have an issue/question about the way price changes are treated in the functionality.
The below example is used to describe the issue for your understanding:
1.Pricing master data: $100/EA
2.Price of item in sales order: $100/EA
3.Qty in sales order: 10 EA
4.Delivery & Goods issue: 10 EA
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Accounting Entry:
DR Unbilled Accounts Receivable $1000
CR Revenue $1000
6.Change in pricing master data: $120/EA
7.Partial Invoice for: 2 EA @ $120/EA
Accounting Entry:
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CR Unbilled Accounts Receivable $240
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Accounting Entry:
DR Customer $960
CR Unbilled Accounts Receivable $760
CR Deferred revenue $200
9.Subsequent Revenue Recognition (VF44)
Accounting Entry:
DR Deferred revenue $200
CR Revenue $200
As you can see in the example above, the amount of the price difference is not credited to sales in step 7. From what I have seen so far the additional amount due to price difference gets credited to sales only after the total invoice value for the item exceeds the revenue recognized.
Is there any option to set the system so that the price difference is taken into account for revenue recognition during each invoicing (even
when the invoicing is partial) ?
Thanks in advance for your help.

The price difference will not go to Sales in Step 7. The reason being Revenue Recognition works on the item rather than the amount. Since you have run F-44, the system finds the same in Unbilled Receivables and posts to that account.
For updating the price changes, you have to run VF46 to cancel the original RR entries. In this case, it will just clear of the RR lines if realization has not happened and post a reversal if realization has happened. This txn will also create a new RR line for VF44 which you can process.
Refer Note 820417 Implementation guide for RR. Download the attachments and look into Part2 doc page 13. This explains how to deal with price changes in sales document.
Hope this helps.
Ravi.

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".
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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

How Revenue Recognition value calculate in VF45 for an item

Hello Experts,
I want to know how system calculates Revenue Recognition for any item in VF45. I know the configuration part of Revenue Recognition but want to know the calculation part, how calculation going to find out the vale of the Revenue recognition.
Item net price is 3139255.45 and system calculate Revenue recognition for this item is 3139020.94.
I want to know how calculation going for Revenue recognition.
Can any body help me out ? any link /document related to Revenue Recognition Calculation (not configuration) please share with me.
Thanks,

Hello Prasanth,
For example :- Maintaining an annual Price ZPRC - 1200 and Billing plan is Annual
So, while recognising SAP takes 1200 / 365(Number of days) = 3.287 per day
For jan - 31 days - 31*3.287 =101.91
For feb - 28 days - 28*3.287 = 92.05
Thank you for your time.

Revenue Recognition: Fiscal/Period updated as 0000/00 for a Rev rec document created after creation of a Contract.

Hi All,
We have created a Contract/Subscription and the corresponding Rev Rec document that got posted is with fiscal/period as 0000/00.
Revenue Recognition: Fiscal/Period updated as 0000/00 for a Rev rec document created after creation of a Contract.
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What amay be the reasons and how can we proceed further on this ?
Thanks,
M.Shiva Kumar

Dear Amrish,
Problem of this you did not maintain the provision account in your revenue account determination. Please go to vkoa transaction and maintatin this provisional account any account number.
eg; application: v. condition type: kofk, chart of account: int, sales org: 0001, revenue account: 89999, provisional account 788888 (something)
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Thanks & regards

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Lakshmi,
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thks

Revenue Recognition for existing orders

Hi friends,
I have a requiremnt to Migrate the old and valid contracts which has not been activated Revenue recognition has to be activated with revenue rcognition.The total number of contracts/orders would be 5 lakh recordes.For the same orders part of the billing plans are billed.
Hence forth which all are going to be billed should pick the revenue recognition.
The above changes should be updated in Production environment
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Thanks in Advance
Narendra
Message was edited by:
narendrababu dabbara

Dear Dayananda
I think if you see Document number in VF44 It means That document is successfully Posted

IMPORTANT! ZXRSAU01 for 0FI_GL_40-Select closed period-last month on BUDAT

Hello Everybody,
I want to use Exit: ZXRSAU01 for 0FI_GL_40 : I need to Select data on closed period (last month) in ECC for BI7, with field BUDAT.
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data: lc_tabix type sytabix.
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.... here you have to determine low and high date for your period you want to select...
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Br
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Revenue Recognition (AR Closed for future month in error)

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