Answer / subha

it is the key through which the billing values are posted
form sales to fico based on whcih we do the g/l account
and profit and loss acccount is caluculated

Answer / rajiv trivedi

The revenue recognition principle is a cornerstone of
accrual accounting together with Matching Principle. They
both determine accounting period in which revenues &
expenses are recognized. According to the principle revenues
are recognized when they are 1) realized or realizable and
2) earned (Usually when goods are transferred or services
are rendered) no matter when cash i s received in Cash
Accounting---In contrast Revenues are recognized when cash
is received no matter when goods or services are sold. his
is somwhat confusing but true as per accointing & financial
principles

IN SD configuration is at S& D-->Basic
Function-->Act.Assignment-->Revenue Recognitio-->Set at Item
category (Special permission from SAP is required to remove
grey area) Set Blank or A or B Then Maintain Account
Detemination in IMG.

Choosing start date of accrual period either as milestone
billing or periodic billing

In fron end (Sap Easy Access ) use VF44 code & set for
Postin Period when revenue is recognized for related co cde,
Sales Org. VF45 to VF48 is used for Rev Recognition.

This is brief summary so may be difficult to understand
well. But I tried my best way.

Thanks for reading.

Answer / rajiv trivedi

Hi Kishore,

When you use VF44 Revenue will be posted in G/L accounts
monthwise/datewise. e.g. If revenue is received in May,
July & today is end of July then these revenue are
recognized. So it will update profit & loss accouont And
Balance Sheet.

Pl check on the system & see all tabs what it contains. So
you will get all idea.

Trust this clarify.

rajiv2856@yahoo.ca

Answer / chandrabhan patil

Hello everyone,
RR is run to ecognize the revenue in particular
period.Revenue is recognized as cash received or on accrual
basis.To show the correct picture of profit and loss
account we have recognized the revenue in particular period
though the goods are in transit.Generally we use T Code-
VF44 to recognize the revenue on monthmise or datewise as
we are incurring expenses. If we not recognize revenue or P
&Loss accounts shows negative picture.And we feel that this
bussiness incurring losses to us.So, we might take wrong
decisions on that financial picture.
- Chandrabhan Patil

Answer / kishore

Hi subha & Rajiv,

I had the same question asked in an interview, as a fi guy
vkoa is where we configure sd fi integration for correct GL
posting. I want to know exactly when the cash received for
the sales of goods is used as revenue recognition or accrual
principle (sale of goods or delivery of goods) for
recognition. can u give the scenarious where we use VF44.
what is the use of it in real time.

Answer / subha

Hi kISHORE

VF44 stands for revenue report . That is IN OTHER TERMS IT
TELL YOU THE DATE FROM WHICH REVENUE accoutn is generated
to the date till which it is generated.

Yes from the FI point of view when oyu do the actual
costing of the material or for custoemr once you have
posted the biloling into the final accoiunts . You need to
define as to wether the givne trasaction or the cstomer has
prived to be profiutble during that particaulr period or
noe i.e financila year or not and for that you need to
rasie the report of revenu . ( erl; ers; BC3M; etc ) and it
alos tell us if any discounts or specila rebates were given
to that custoemr in that particular period and agist what
amount of business generated in that year

sECONDLY YOU HAVE REVENUS ACCOUNT AT CASH revenue account
too where you need to caluculates the cash trasacation done
. the path is same excpet for that in revenu account you
take ; application ; accout key; condtion type; accout
assignment of customer ; account assignment of materila ;
chart of account; sales orgianisation and gl accouNT bUT
DONT CALUCULATE DIVISION WISE OR DISTRIBUTION CHANNLE
sO IN CASH ACCOUNT YOU CALUCULATE ALL THE Parameters and
alos take into account the sales area insted of sales
organisation
I.e item levle calucaultaion is done
YOU also have reconsilation account into picture when you
take into accunt the export sale

However the condtion type in each varies ie. fpr cash
account it is kondfi

Thus as rajiv told it is a vast subject and lot of
confusions are there

Answer / subha

Once you ar done with the billing and the posting is done
in the fb03 you do the revenue recognisation as told
earlier this s done for the posting of the finncial
documents for the purpose of preparing the account statement

what is custmer account group

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