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Purpose

Period-based accrual calculation of revenues, revenue must be realized in the posting period in which the service was rendered rather than in the posting period in which the billing document was created.  Therefore fulfillment this requirement by separating revenue recognition from the billing process. Revenue recognition controls how much revenue is to be reported in which posting period.
Revenue recognition allows you to post revenue to the financial accounting components in SAP ECC independent of billing documents, which are posted to revenue accounts.
In this way, revenues can be posted before, during, or after the actual billing. The automatic transfer of data from business transactions in SAP CRM Service into an SAP ECC internal order makes it possible for you to use results analysis in SAP ECC
Revenue recognition in SAP CRM is used in service contracts in SAP CRM and is not technically related to revenue recognition in the SAP ECC sales component (SD). Technically, the results analysis in the SAP ECC component CO-PC is used.

 

Overview

There are 3 types of Revenue Recognition:

  • Standard Revenue recognition
  • Service-Related Revenue Recognition (Value Contract / Quantity contracts with a target quantity)) 
  • Time-Based Revenue Recognition

Standard revenue recognition

means that the billing documents are posted directly to a revenue account. No results analysis takes place.

Service-Related Revenue Recognition

The following values are determined in CRM and transferred to ECC:

●  Target value from the service contract items

●  Contract start date and contract end date

●  Release values from service orders or service confirmation

The following values are calculated in ECC:

●  Accrual quantity per posting period in percent (degree of revenue recognition) = Release value per posting period / target value * 100

●  Realized revenue per period = Accrual quantity per posting period in percent * Planned revenue

The planned revenue is equal to the target value.

 

Revenues can be realized based on service for services contracts in CRM with the target value and target amount, meaning that the Percentage of Completion (PoC) is calculated as a

ratio of the call value from the service contract to the target value, or a ratio of the call amount to the target amount. The call date is used as the delimitation date. More details are avaialbe in SAP Note  1017533.

Time-Based Revenue Recognition


The following values are determined in  CRM and transferred to ERP:

●  Contract start date and contract end date

●  Sum of billing request items

The following values are calculated in ERP:

●  Accrual quantity per posting period in percent (degree of revenue recognition) = 100 / Number of posting periods

●  Realized revenue per period = Accrual quantity per posting period in percent * Planned revenue

The planned revenue is equal to the sum of the billing request items.


Related Content

Related Documents

Consider Explanation in the SAP Help :

Revenue Recognition for Service Contracts with SAP ERP Integration

Customizing for Revenue Recognition with SAP ERP Integration

Revenue Recognition 


Related SAP Notes

In case you had different length of  periods - please consider SAP Note

2185589 Revenue recognition selection in ERP for CRM Service

2146492 Revenue Recognition based on days

1017533 - CRM revenue realiztn with service confirmtn

 


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