Revenue recognition settings

Hi All,
I had configure the revenue recognition process in sap sd but while trying to configure the setting in item category the revenue recognition field it is not allowing me to update it is showing grey out, even i tried to do from transaction OVEP as well but still unable to do the settings.
Please help me and suggest me where and how i can do the settings.
Regards,
Nitin

Hi,
Please check the suggestion given by Mr.Raghavendra in following thread.
Revenue Recognition
Also check:
Time-based Revenue recognition
Regds,
Abhee

Similar Messages

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.
In VF44 transaction, we find option for VPRS cost being captured against every line item & are available for posting along with revenue line.
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
Thanks
Banu

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

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 in Project System

Hello All,
At my current client, they are using the Project System (i.e. WBS) only for Cost and Revenue collection. POC,RA,Milestone billing,Network, Activities are out of scope. Keeping the above thing in mind, I need to know how I do the Revenue recognition thru WBS.
Mu understanding is that If I assign a WBS element on a Sales Order line item, as an account assignment it should collect the Revenue. The only requiremnt should be that WBS should be a billing element and Cost/Revenue profile should carry SD relevant settings. Once the billing is done and invoicing is done, the Revenue should appear against the WBS on running the report S_ALR_87013563/64/65/66.
Please let me know if this will work or do I need to do some more configuration from PS perspective.
Thanks
Sarang

Hi Sarang,
1. Mark WBS as billing element.
2. Assign the sales order line item to the WBS in point 1 or any WBS below that in the hierarchy.
3. Create a billing plan for the sales order line item.
4. The billing plan amount would appear as planned revenue against the WBS element (provided no credit hold useVKM3 to release).
5. Once the line item has been billed ie. Billing document has been created using VF01 or VF04, the Actual revenue would appear against the WBS element.
In terms of Config:
Creat a planning profile that allows Automatic Revenue planning form Sales Order (tcode: OPSB)
Ensure that the planning profile is attached to your project profile (Controlling tab) (tcode:OPSA).
Please let me know if this helps.
jibat
Edited by: Jibat Sankar De Sarkar on Jan 21, 2009 2:49 PM

Revenue recognition job hangs and needs reboot of servers

We are on SAP BPC v7.0 SP6.1, using Microsoft Office 2007 and Internet Explorer 7. We have two environments - Production and QA. Production so far is running fine; QA is on a smaller environment.
I am an application user and load final production files into QA each month. For the past two months when trying to run the revenue recognition job for April 2010 and again for May 2010, the job just hangs where it would normally take about two minutes to complete. Both times it was the only job running at the time, as no one was using the QA environment. I had to terminate the job (which might leave the job running in the background) and have our Server team reboot our two servers (Application and SQL Server Analysis Services). Then the revenue recognition job completes.
Depending if I terminate and resubmit the revenue recognition job, I might get the following detail log message:
Execute formulasError
Failed to commit transaction
1 errors writing data
Send through SendGovenor failed
Last week, our DBA set the QA databases to Simple instead of Full recovery and shrank the transaction log files. I ran a test revenue recognition for July 2010 and the DBA tried to monitor the environment, but he could not see any job committing or any activity on the database. I ended up rebooting our servers to complete the test.
Has anyone experience similar problems and was able to resolve it. Any ideas would be appreciated. Thanks.
Bucky

Hi Sorin Radulescu,
I load the initial billing file using the Import logic script and select the data file and transformation file. I click on the Merge data values option; click No to run default logic; and click No, do not check work status settings. Once the import completes, I run the revenue recognition logic for the accounts and periods I am working with.
I compared our Production transformation file, default logic script (which I am not running), and revenue recognition logic script to QA and they both match. My problem is when I run the exact same revenue recognition job in QA, the job just sits in running status but should finish in a couple of minutes. I would let it run for a couple of hours in QA, then terminate the job and have our two servers rebooted, then the same revenue recognition job runs to completion within a couple of minutes.
I am just wondering if there could be some other setting that does not let the job submission kick off the actual update to the database. To make sure the database was not hosed from the terminated revenue recognition job, I ran a different but smaller job and it completed. Then I would ask for the reboot and resubmit the revenue recognition job and it completes.
I will let our DBA know about monitoring the dllhost.exe for amount of memory used. But the last time he tried to check for any activity on the database he could not see anything, but I do not know if he was checking dllhost.exe or some other files.
Thanks for your response and suggestions. Since this is our QA environment (which I try to keep current with Production), I am trying to see if I can identify the cause and fix it, in case it carryover to our Production environment.
Regards,
Bucky

Revenue recognition field greyed out

Hi Gurus,
I am unable to set revenue recognition for item categories as the fields are greyed out. Please help me with relevant settings and configuration.
Thanks in advance
Raj

Hi,
In IMG under
Sales and Distribution -> Basic Functions -> Account Assignment/Costing -> Revenue Recognition -> Set Revenue Recognition For Item Categories
and
Sales and Distribution -> Sales -> Sales Document Item -> Define Item Categories
Regards,
Srilatha.

Revenue recognition - deferred revenue

Hi Experts,
We want to recognize some of our revenues other than the billing date.
Some of our sales are by sea and using CIF incoterms, so if the goods was sent during the last days of the accounting period, we can not recognize it in the FI reports till the goods arrived it's destination.
So I want to do the PGI and the billing today and credit the deferred revenue account instead of the revenue account.
I saw the SPRO regards it.
1. What are the specific setting I have to use in "spro, sales and distribution, basic function, account assignment/costing, revenue recognition, set revenue recognition for item category" for this case? (time related/service related/billing related...etc)
2. Can I use regular sales order, delivery, PGI, billing document or do I have to use contract or something else?
3. Can the trigger be the incoterms/destination country instead of the item category?
Thanks
Ifer

Symptom
After you implement Note 1239165, the source code prerequisites for connecting the accruals account determination to the incompletion log in the standard system are met. This note describes the Customizing settings that you have to make to use the functions described in Note 1239165.
Other terms
Standard revenue realization, Customizing, incompletion, KONV, SAKN1, SAKN2, ZZ_RR_TVUVF, RV_INVOICE_ACCOUNT_DETERM, RR_ACCOUNT_MISS_DEF, RR_ACCOUNT_MISS_UNB, TVUVF, SAKUR, TVRRUR
Reason and Prerequisites
The Customizing settings are required to use an error group in revenue realization to specify the incompletion and to prevent the system creating subsequent documents.
Solution
Make the following settings:
1. Create the following procedures in Customizing:
Sales and Distribution -> Basic Functions -> Log of Incomplete Items -> Define Incompleteness Procedures -> Incompletion Group B (Sales - Item) -> Procedures ->
-> RR (text RevRec item). Save your entry.
2. For the accruals account, create the following status group:
Sales and Distribution -> Basic Functions -> Log of Incomplete Items -> Define Status Groups
-> Status grp General Delivery Billing doc. Price Goods movement
   RR        X        X         X             X
Additional information: The revenue accounts are assigned to the status group 00 through the error group "MP". This status group permits subsequent documents to be created.
3. It is not necessary to assign the incompletion procedure RR to the item category that is relevant for revenue recognition. In the case of item categories that are relevant for account determination, by default, the system uses the error group "MP" for the revenue accounts and the error group "RR" for the accruals accounts.
4. Create the report ZZ_RR_TVUVF to execute the entries required to check the fields and to assign the status groups. The report enters the required entries in the tables and in TVUVF. If these already exist, the system issues an error message.
The following check fields and status groups are entered:
Table     Field name Description   Screen Status Warning Rank
KONV SAKN2    accruals account          PKON RR
TVRRUR SAKUR    unbilled receivable account       RR
Attributes
Title: Insert/delete RR incompletion settings in TVUV and TVUVF
Type: 1 (Executable program)
Status: T (Test program)
Application: V (Sales and Distribution)
Package: (Customer-specific package)
Selection texts
P_DELKZ Delete revenue recognition records
P_INSKZ Create revenue recognition records
The source code is provided in the attached correction instructions.
Insert Block
*& Report ZZ_RR_TVUVF                                                 *
report zz_rr_tvuvf.
Tables *
tables: tvuvf.
Work areas *
data: begin of gvt_tvuvf occurs 0.
        include structure tvuvf.
data: end of gvt_tvuvf.
data: lvf_subrc1 like sy-subrc,
      lvf_subrc2 like sy-subrc.
data: gvs_tvuvf like tvuvf.
======================================================================
Definition of the selection screen                                   *
======================================================================
parameters p_inskz radiobutton group act.
parameters p_delkz radiobutton group act.
======================================================================
Initialization                                                       *
======================================================================
initialization.
clear   gvt_tvuvf.
refresh gvt_tvuvf.
======================================================================
Selection of data                                                    *
======================================================================
start-of-selection.
select single * from tvuvf into gvs_tvuvf
                            where fehgr = 'RR'.
                            and tbnam = 'KONV'
                            and fdnam = 'SAKN2'
                            and statg = 'RR'
                            and fcode = 'PKON'.
lvf_subrc1 = sy-subrc.
select single * from tvuvf into gvs_tvuvf
                            where fehgr = 'RR'.
                            and tbnam = 'TVRRUR'
                            and fdnam = 'SAKUR'
                            and statg = 'RR'
                            and fcode = '    '.
lvf_subrc2 = sy-subrc.
Populate fields
gvt_tvuvf-mandt = sy-mandt.
gvt_tvuvf-fehgr = 'RR'.
gvt_tvuvf-tbnam = 'KONV'.
gvt_tvuvf-fdnam = 'SAKN2'.
gvt_tvuvf-statg = 'RR'.
gvt_tvuvf-fcode = 'PKON'.
append gvt_tvuvf.
clear gvt_tvuvf.
gvt_tvuvf-mandt = sy-mandt.
gvt_tvuvf-fehgr = 'RR'.
gvt_tvuvf-tbnam = 'TVRRUR'.
gvt_tvuvf-fdnam = 'SAKUR'.
gvt_tvuvf-statg = 'RR'.
gvt_tvuvf-fcode = '    '.
append gvt_tvuvf.
clear gvt_tvuvf.
insert case
if not p_inskz is initial.
    if not lvf_subrc1 is initial and
       not lvf_subrc2 is initial.
    insert line
      insert tvuvf from table gvt_tvuvf.
      if sy-subrc is initial.
      line already there
        write: 'Line in table TVUVF inserted'.
      else.
      Error when insert
        write: 'Insert not possible'.
      endif.
    else.
    line already there
      write: 'At least one entry already in the table TVUVF'.
    endif.
else.
delete case
    if not p_delkz is initial.
      if lvf_subrc1 is initial
      and lvf_subrc2 is initial.
      delete line
        delete tvuvf from table gvt_tvuvf.
        if sy-subrc is initial.
        line already there
          write: 'Lines in table TVUVF deleted'.
        else.
        error when insert
          write: 'Delete not possible'.
        endif.
      else.
      line not there
        write: 'At least one entry not in the table TVUVF'.
      endif.
    endif.
endif.
See you Monday

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

What is Revenue Recognition

Dear Gurus,
I would like to tell you all that I do not know anything about the term Revenue Recognition except how to spell it.
I dont have commerce background also to understand the terms like provisional account and deferred account. I have to configure and understand the Rev Rec procedure. it was decided and discussed by earlier people that certain business process would be configured with Rev Recg functionality. So you can understand my situation. I want to know the theory and also want to know how it will take place in SAP SD to recognized the revenue in the last of every month?
Please tell me the end to end process, why it is used? what are the examples? where it starts and ends?
If any document other than SAP notes please provide me.
regards,
Sanjay

If any document other than SAP notes please provide me
Have you searched this forum before posting this question ?? Many times this was discussed. Please search and still if you are not able to find any inputs from this forum, let me know based on which, I will provide links.
In fact, I am not sure whether you have gone through SAP Note 1166848 explaining configuration settings for revenue recognition. If not, go through that.
thanks
G. Lakshmipathi

Revenue Recognition Accounting in PS Results Analysis

I am trying to understand certain aspects in the accountng involved for the process of Results Anaysis. In my case, we have configured RA for revenue recognition and all is working well. We have a project that has a billing element and an account assignment element under it. Invoices go to the billing element, costs go to the aa elemet. RA key is entered on the billing element. RA calculates Revenues and COS and the billing element settles them to PA. While calculated, defered and unbilled revenue post to FI using OKG8 configuration settings. All is fine on the mechanics of this.
What I do not understand is the treatment for the actual costs. Are they supposed to be settled to PA as well? If so...then, the costs seem to double up in PA (COS from RA calculated based on the actual costs via the billing element and Actual costs themselves from from the aa element). Are the actual costs supposed to remain in the aa WBS element and not be settled? It seems unbalanced. Can anyone explain?

Hi,
Settlement process involves a sender object and a receiver object. Receiver object is the cost object on which actual cost incurred in the sender object is settled. RA is one of the receiver objects for settlement, but not the only one.
Your scenario seems to be periodic calculation of WIP (result analysis) and final settlement of production orders.
The periodic WIP (RA) postings done in FI are reversed and replaced with COGM when the production order is finally delivered. The entries in FI at this stage is based on the "Standard Price" maintained in the material master (depending on the valuation variant). Then the final settlement of production order takes place and the total actual cost is arrived at. The difference in cost between "actual cost" and standard price" is settled to RA as a separate entry.
The reversal of entries when the production is delivered (as explained above) ensures that cost is not reckoned twice.
Hope this explanation meets your requirement.
If so, you may like to close the thread. Otherwise, please revert.
Muraleedharan.R

Revenue recognition through RA

Hi CO and RA Gurus
Does any one know how to do Revenue Recognition using Result Analysis Keys.
thanks
KT

Hi,
Result Analysis:
Overview:
The objective for calculating Work in Process (WIP) is to determine the value of manufacturing activity in process at the end of a fiscal period, during a fiscal period and to properly reflect this value on the financial statements. WIP calculation is a facet of Results Analysis (RA). RA is a specialized tool within the controlling module that computes and analyzes the value of WIP. The terms WIP calculation and RA are generally interchangeable.
Results analysis is used to:
a. Calculate the inventory value of finished and unfinished products in a non-valuated project stock or non-valuated sales stock environment or
b. You are using a valuated sales order stock or valuated project stock and want to capitalize goods that have been delivered but not yet invoiced.
The difference between SAP and other systems is in the treatment of material consumption for manufacturing. Component issues to production orders, run schedules, WBSs, etc is immediately treated as an expense to the P&L statement. The issue is not treated as a reclassification from raw or semi-finished inventory to WIP inventory. SAP considers WIP to be a snapshot of values that can be computed on demand and passed to the general ledger as required to re-class the values to the balance sheet. This process demands a specific, methodical approach to be used for period-end and mid-period processing. Rules used to calculate the value of WIP and settle WIP to the G/L are defined in multiple RA tables depending upon the requirements of the company. RA is designed to support a variety of calculation techniques and there may and are alternate settings depending on the demands of the company. To support the configuration, scenarios and unit testing need to be thorough. RA needs to be configured towards the middle of the of the implementation with subsequent testing. This will allow for configuration of the data needed to support WIP and RA (chart of accounts, production orders, projects, cost centers, cost elements, etc.)
Configuration Transactions:
OKG1 u2014 Create Results Analysis Key
OKG2 u2014 Results Analysis Version
OKG9 u2014 Results Analysis Version
OKGC u2013 OKGD u2014 Valuation Methods
IMG SPRO u2014 Define Line IDs
OKGB u2014 Define Assignment Mapping by incoming charges by cost element to line IDs
OKG5 u2014 Define Assignment Mapping by incoming charges by cost element to line IDs
OKG4 u2014 Define Update
OKG6 u2014 Define Number Ranges
If your done with RA configuration and posted actual cost,plan cost and plan revenue.
you can calculate revenue recognistion using KKA2 T.code for projects.
Hope this helps you.
Thanks,
Rau

Customization for revenue recognition

Can anyone advise why the customization setting for revenue recognition is greyed out? This is related to the setting against the item category.
Path : SD => Basic Functions => Acct Assignment/Costing => Revenue Recognition => Set revenue recognition for item categories.
Is there some other settings need to be done first or is this customization accessed from other path?
Thanks
Peter

Hi Peter,
It's the correct path you are accessing! No prior settings required.
It's working fine for me peter.
Try once again.Ensure that you are in change mode.
Regards,
Raghav
Edited by: Raghav on Jul 8, 2008 12:55 PM

SD Revenue Recognition-SAP Audit

Hey Experts,
I understand that before we could go live with SAP SD Rev Rec functionality, post UAT, we need to present the system with complex scenarios for SAP Audit.Upon their approval only, it is suggested to move the design to production.
Could some one who have gone through such SAP Audit tell me
-->Min / Max duration for the audit
-->Share experiences like expectation from SAP, any corrections suggested post audit by SAP etc
Awaiting for earliest response
Thanks in Advance
Banu

Hello Banu,
The assessment is a free-of-charge service SAP offers to
ensure that mandantory conditions and customizing settings are met.
The prerequisites are reported in note 782758.
Initially you have to fillup the questionnaire which SAP sends.
Once the Activation key is provided, you have to do the testing of the processes in the TEST/DEV system.
Then the test cases have to be provided to SAP for assessment.
SAP then gives you the approval to use revenue recognition in your
PRODUCTIVE system after SAP has reviewed the testing data you provided
and don´t find an error.
This assessment is necessary in order to get future support by SAP
in terms of the revenue recognition functionality.
Please inform SAP at least four weeks before you go live with the
revenue recognition functionality.
Regards,
Raghavendra YN

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.

HELP: AR Open Invoices Conversion with Revenue Recognition (Daily Revenue)

Hi,
I need some help on Conversion of AR Open Invoices with Accounting Rules in R12, Here the client wanted to use Daily Revenue Schedule rule,
I am developing Functional Specification Document (CV.040); Need to understand the Assumptions, Approach and Which data needs to be extracted from Legacy System.
Appreciate your reply at the earliest
Thanks
Ravi

Anil,
Thanks for your response, Here are the answers to your questions.
1) The invoices that you want to convert - Do they already have revenue recognition on them?
Ans: Yes they have Revenue Recognition On Them.
2) Are you bringing only Open Invoices? What about Invoices that are closed (paid), but still have unrecognized revenue on them? DO you want to bring them
over? If no, how will be mage the recognition of those invoices?
Ans: We want to bring only Open Invoices. i.e the following scenarios want in Data Extraction
a) Invoice is Fully Paid (REC is Zero) and Unearned is Full Invoice Amount, Revenue is 0
b) Invoice is Partially Paid (REC is Partial) and Unearned is Partial, Revenue is partial
c) Invoice is fully Paid (Rec is Zero) and Unearned is Partial and Revenue is Partial
d) We do not want to bring the invoices with Fully Paid and Fully Recognized, Unearned is Zero
3) What about partially paid invoices? How do you want to bring them in?
Ans: See above scenarios.
4) Do you want to bring in all Invoice details,or just bring in a summary line with the outstanding amount?
we assume only Summary, but if the Invoices with Several Lines and Different Accounting Rules, We may have to bring them too
Appreciate your response; Suggest some possibilties?
Thanks
Ravi

Revenue recognition settings

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