Service based revenue recognition (u0091Bu0092) contract with call off

I am trying to understand Revenue Recognition. I have come across the above term." Contract with call off"
Can anyone tell me what exactly this means.

Dear sap
The contract consists of items defining the individual materials, material groups, or services with prices and in many cases quantities.
An item is assigned to an item category, which defines the type of procurement (e.g. item category K for consignment, or L for subcontracting).
An item of the procurement type "external service" contains a set of service specifications. Such specifications may be hierarchically structured. The summary view of such a hierarchical structure is termed an "outline", and the individual levels of the hierarchy are referred to as "outline levels". Quantities are specified in service lines. Services can be released (<i>ordered, or called off against the contract</i>) at item level or at the level of the service line.
Thanks
G. Lakshmipathi

Similar Messages

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

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

Service-related revenue recognition

Hi Experts,
When post VF44 for a contract with Service-related revenue recognition (revenue recognition category B) get the message below. No RR FI document posted too.
<<Document for SD reference number u2018delivery orderu2019 does not exist
Message no. JHE019
DiagnosisDocument for SD reference number &1 does not exist. If accounting documents for revenue recognition have been created at collective processing level, you cannot navigate in the original document.>>
Any advise.
Cheers.

hi,
please check in scribd these is a link related to RR.
or
please check in forums on the same.
regards,
balaia

Help with contract or call off orders.

Hi,
At current we are very light users of SAP on the purchasing side. We use purchase requisitions with a bespoke workflow which are then transferred into purchase orders and emailed out.
We are looking at implementing contract or call off orders for services we purchase, eg support that gets invoiced once a month. We can then enter the invoice against one of these orders.
Can anyone point me in the right direction of what the best solution to use would be and how to go about setting them up.
Thanks

Hi,
You can use a framework order to execute that process, as long as you know how you want to spend in a financial year and there will be no need to created goods receipt , framework orders only work with Framework Order and Invoices for payment.
Thanks
Silas

Contracts and Call off's

Hi,
A customer can create a contract or a bulk order in the system.
This can be referenced by call off orders.
One system can have multiple contracts and call off's.
1 - Are there standard system settings that are considered when a call off is referencing a contract order?
As in, what are the critera that a call off order will check in order to reference contract A or B.
2 - Say call off order B is created by referencing contract A.
I dont want the pricing in contract A to copy to call off order.
How can this be facilitated?
Thanks in advance!

Hi,
1 - Are there standard system settings that are considered when a call off is referencing a contract order?
As in, what are the critera that a call off order will check in order to reference contract A or B.
Yes when your Call off order is referenced with contract then it will appear in tab ACCOUNT ASSIGNMENT at item level
after save of call order it will appear in document flow
When system referring contract then there are various criteria check by system that you can check in COPY CONTROL SALES DOCUMENT TO SALES DOCUMENT by t-code VTAA check at header level and item level what routine are set
If you set outline agreement massage indicator in call of order by VOV8 under transaction flow tab, then even you not reference contract and individually creating call of order and once you put sold to party system will check is any contract available with this party.
2 - Say call off order B is created by referencing contract A.
I don't want the pricing in contract A to copy to call off order.
How can this be facilitated?
For this if you want to keep PRICE PROCEDURE same for contract and call of order but only want new price values in call of order then in copy control VTAA at item level set PRICING TYPE - B carry out new pricing
If you want to assign two diffrent price procedure then differentiate by DOCUMENT PRICE PROCEDURE
set two different document price procedures in Sales document by VOV8
and determine two different pricing procedure by OVKK in both documents
Kapil

Service line item History for Contracts with item cat - D and Acc Assg P

Hello Gurus,
We have a situation where we create contract with item category D (Service) and account assignment category P (Projects). And for the line items of the PO we have difference services (without a service master) and each service line item has the price and quantity and other required fields. Now it is required to change the price or the quantity or both for this service line time and again (business requirement).
The task is to to track the price changes and the quantity changes that have happened to the serive line item from the original and we require the report to diplay the original price and the present price on the service line.
The question is: Is there a standard report in SAP to handle this? Or which are the tables where a service line items history is stored so that it can lead to a development.
Regards - SS

Hi Pankaj,
We are using a Percentage based case (Prorata case)
For Eg : For Eg for 65% (65KAI )material Price 1000 Rs
If the Purity percentage varies payment will be done as per the same. For eg : for 70% (70KAI ) Price 1200 Rs. (approx)
In this case unit of measurement is KAI (kilo active ingredient) .
Actually we are dealing with dealer price where duties are entered Inclusive of the total price and entered at the time of making GR. and the payment is made as per the same;
we have one po for 5000 MT. where we received material at first time Qty being 1993 MT.The duties manuallyentered are as follows :BED :24,167.00
AED : 7,076.00
ECS : 483.00
SECES : 242.00
These duties are flowing correctly in MIRO
and the MIRO has been Posted and payment is also made.
But while the balance quantity 2982 kg we received next time and those duties are as flowing as follws:
BED : 36160
AED : 10587
ECS : 723
SECS : 362
But here at the MIRO the following duties are flowing instead of above
BED : 36,526.08
AED : 10,694.18
ECS : 730.32
SECS : 365.66
What might be the error at this stage.
waiting for solution at the earliest .
Regards,
Girish.C.M.
09377077122

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

Problem with call-offs between APO and R/3 system

Hi, gurus.
We have following problem:
APO system receives DELINS idocs. They are processed correctly (status 53). But sometimes the call-offs in R/3 system are not updated. I do not know much about the underlaying process but how can I check where the problem is?
I suppose it can be caused by blocking of particular material or order or whatever in R/3 system when the call-off is being processed. But then the system should give some warning. I need to know where it could be found.
The only workaround at the moment we do is to create copies of DELINS in APO system and let them be processed.by APO and consequently by R/3 system.
Thank you.
Stano Letko

Hi Stano,
When ever IDOC fail you can trigger a workflow to the respective person through Partner profile and message type setting .(we20) as Post processing permitted agent .
Get in touch with techincal person who have idea of IDOC configuration.
Message type : DELINS
Partner number : XXX
Workflow tcode : PPOSE
Manish

Service entry sheet create for contracts with unplanned services

Hi,
I am creating SES using BAPI_ENTRYSHEET_CREATE. I have a scenario in which i need to create SES based on the PO no, PO Item , Quantity, Headertext, Contract No, Contract Item, Contract_Item_Line. While creating manual SES using ML81N we use Contract button to provide contract no, item and service(service with master, without master). When i am creating SES it is creating SES but the service is getting posted as unplanned not contract checkbox. In ML81N screen there are four checkboxes for any service line. 1)Plannes 2) Unplanned 3)Contract 4) Dele. Indicator
In my case it should flag the contract button but when there is an unplanned service for any contract no, it is flagging the Unplanned checkbox not contract checkbox.
Please suggest
Thanks
Randhir

you can get the PackNo details of entry sheet from ESSR and of PO from EKPO. from the packno find the subpack no in ESLL. put the subpack no again in ESLL as pack number and you get the services for entry sheet and PO. you may try a logic to link both

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

What is the Revenue recognition process ?

Hello Experts,
Could you explain the concept of "Revenue recognition" and what is the use of this process.
Thanks and Regards

Hi
Revenue recognition controls the posting period in which revenues are entered and their value.
Revenue recognition means that revenues can be posted in FI independently from the billing document (which normally posts to revenue accounts). This means that revenues can be posted before, during or after billing or a value that has already been billed can be distributed between various periods.
Revenues can be posted periodically or on the basis of specific events:
Standard revenue recognition means that the billing document posts directly to a revenue account. This posting is made without involving the Accrual Engine, i.e. without a revenue recognition process.
Periodic (time-related) revenue recognition means that the revenue from a sale is distributed and posted equally across the entire contract validity period. Billing posts to an accruals account here and revenues are first transfer posted to the revenue accounts in a second step.
Service-related revenue recognition means that the revenue is recognized as the result of an event such as a confirmation or a delivery. Billing also posts to an accruals account here and revenues are first transfer posted to the revenue accounts in a second step.
to know the integration with ECC click on this
http://help.sap.com/saphelp_crm60/helpdata/en/45/f004d98b8f3481e10000000a1553f6/frameset.htm
Reward if helps
Regards
Manohar

SAP Revenue recognition Credit Memo Accounting document

Hi,
One of our client uses SAP Revenue recognition to post revenue. They have implemented the Service related revenue recognition (revenue recognition category B) and also process credit/debit memo with reference to preceding docuemnt
"F". Each month a debit memo is issued ot the customer for the services performed. Eventually we create credit memos when the customer disputes a particular debit memo invoice. Debit memo and credit memo documents
are created with DP96.
The issue they have currently is with the credit memo account document postings. Client credit memo accounting documents are making postings to unbilled revenue accounts. The postings remain as debit postings in unbilled revenue accounts even after revenue is recognized for an order. According to them accounting rules do not fulfil with the credit memo postings to the unbilled revenue account. Hence we need your expert advice/opinoins.
Please reply as soon as possible because its very high priority issue.
Thanks & Regards
K.R.

Hi,
Please check the reason for value not flowing to the header data of the billing document.Once you get the value of the document tin the header , there will be no issue in creating an accounting document.
Check the item category of the credit memo.
Regards,
Phani Prasad

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

SD Time/Sevice related Revenue Recognition

Hi
Has anyone switched to a time/service related revenue recognition method from the standrd billing method? we are looking at switching and I wanted to know of anyones experience and problems you came across during your change, did you create new item categories or just update the existing categories(this is what we are thinking of doing). How did you handle open Sales orders which are using the standard method etc...
thanks
Joe

Dear Joe
Please go through the OSS NOte
779365 - Best Practice document for revenue recognition
Or Seach Google below
1- Search Revenue Recognition Processing (474)
2- SAP R/3 SD REVENUE RECOGNITION -
BEST PRACTICE
Knowledge Document
Version 1.4
You will find it on Google easily
Thanks and Regards
Asad

Service based revenue recognition (u0091Bu0092) contract with call off

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