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

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