What is Revenue Recognition? It's relevance with SAP SD
module along with it's detailed configuration procedure &
steps?
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Answer Posted / 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.
| Is This Answer Correct ? | 20 Yes | 3 No |
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