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Revenue Recognition SAP
Revenue Recognition SAP
March 25, 2018 | Author: daeyong | Category:
Invoice
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Revenue
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Business Process
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Debits And Credits
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International Financial Reporting Standards
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SAP R/3 SD REVENUE RECOGNITION BEST PRACTICEKnowledge Document Version 1.4 SAP R/3 SD REVENUE RECOGNITION BEST PRACTICE © SAP AG 07/2005. All rights reserved. KNOWLEDGE DOCUMENT (Based on R/3 Release 4.7) Release: Version 1.4 from of July 2005 Issued by: SAP AG Neurottstraße 16 69190 Walldorf SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 2 Of: 91 Revenue Recognition - Best Practice Knowledge Document 1 2 Table of Contents GENERAL RECOMMENDATIONS .........................................................................6 DESCRIPTION OF BUSINESS AREA.....................................................................8 2.1 2.2 2.3 2.4 The available methods include:............................................................................................................... 8 The trigger and impact of the methods are: .......................................................................................... 8 Typical Core Business Processes using the methods are: ..................................................................... 8 Business Process Specific Information ................................................................................................... 9 3 IMPLEMENTING REVENUE RECOGNITION ....................................................... 10 3.1 Getting started R/3 SD Revenue Recognition...................................................................................... 10 Required releases and support packages........................................................................................................... 10 Supported processes in revenue recognition...................................................................................................... 10 Starting with customizing.................................................................................................................................. 12 3.1.1.1 Global informations ................................................................................................................... 12 3.1.1.2 Presteps...................................................................................................................................... 12 Customizing FI accounts and their settings ....................................................................................................... 14 3.1.1.3 Unbilled receivable account and deferred revenue account....................................................... 14 3.1.1.4 Revenue account........................................................................................................................ 18 SD-Customizing ................................................................................................................................................ 20 3.1.1.5 SD item-categories and their settings ........................................................................................ 20 3.1.1.6 Customizing revenue recognition type on item category level .................................................. 22 3.1.1.7 Customizing revenue recognition accrual start date .................................................................. 24 3.1.1.8 Account determination............................................................................................................... 25 © SAP AG 07/2005. All rights reserved. 4 DESCRIPTION OF CORE BUSINESS PROCESSES ........................................... 27 4.1 Standard Revenue Recognition at time of billing................................................................................ 27 General Information .......................................................................................................................................... 27 Business steps overview and process description.............................................................................................. 28 Critical functions ............................................................................................................................................... 28 Variations of the process ................................................................................................................................... 28 Additional important information...................................................................................................................... 28 4.2 Time based revenue recognition (‘A’) .................................................................................................. 29 General Information .......................................................................................................................................... 29 Business steps overview and process description.............................................................................................. 29 4.2.1.1 Process 2 – time based with VF44 as first ................................................................................. 29 4.2.1.2 Process 3 – time based with invoice as first .............................................................................. 30 Critical functions ............................................................................................................................................... 31 Variations of the process ................................................................................................................................... 31 Additional important information...................................................................................................................... 31 4.3 Service based revenue recognition (‘B’)............................................................................................... 33 General Information .......................................................................................................................................... 33 Business steps overview and process description.............................................................................................. 33 4.3.1.1 Process 4 – service based with VF44 as first............................................................................. 33 4.3.1.2 Process 5 – service based with invoice as first .......................................................................... 34 Critical functions ............................................................................................................................................... 35 Variations of the process ................................................................................................................................... 35 Additional important information...................................................................................................................... 36 4.4 Service based revenue recognition (‘B’) contract with call off........................................................... 37 File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 3 Of: 91 SAP AG ....... 49 4.................................................................................. 41 Critical functions ...................................................................1................................................................................................................................9..................... 49 Additional important information............ 46 Additional important information........................................................................................................doc Page: 4 Of: 91 SAP AG ........................ 49 Variations of the process ..................................................................................... 60 MONITORING OF THE REVENUE RECOGNITION DATA........................................................7 Credit/debit memo revenue recognition with reference to preceding document (‘F’)........... 37 4..4..............................................2 Process 10 – time based with invoice as first. 58 Additional important information.............................................................................................. 61 File: RR_Best_Practice_Knowledge_Document_V1..............................................................................................................................................................................1................ 58 Variations of the process ................... 42 4..................................................................................................1.....................................................6....................................................................8 Time based or service based revenue recognition recognition in credit/debit memo processing without a credit/debit memo request (‘A’ or ‘B’).......................................................................................................... 51 Critical functions ...... 39 Variations of the process .......................................... 59 © SAP AG 07/2005............................................................... 43 Business steps overview and process description................................6 Time based revenue recognition in credit/debit memo processing with a credit/debit memo request 43 (‘A’) General Information ..................................................................................................................... 56 Additional important information..........................................1 Process 13 – service based return processing with reference to an order with VF44 as first..................1..........................................................................................................................4............................... 56 4.......... 51 Additional important information......10 Service based revenue recognition in return processing with reference to a contract and call off order (‘B’) ..................................................... 53 4............................................................................................... 42 Additional important information...................................................................................................................................................................Best Practice Knowledge Document Table of Contents General Information .................................................................................................................................................................................................................. 57 Business steps overview and process description....................................................................................................2 Process 14 – service based return processing with reference to an order with invoice as first........................... 39 Additional important information............................................................. 40 4.........1 Process 9 – time based with VF44 as first .................................... 45 Critical functions .......................................................................................................... 57 Critical functions ......................... 42 Variations of the process ........................................................................... 56 Variations of the process .................................................................Revenue Recognition ................................................................ 50 Business steps overview and process description.........................................1.............9 Service based revenue recognition in return processing with reference to an order (‘B’) .................................................................................................................................................................... 48 Critical functions ........................................................................................................................6............................................ 53 Business steps overview and process description.......... 43 4.....................................................1 Process 6 – service based with VF44 as first................................................................................................................................................................................. 41 Business steps overview and process description..................................................................................... 47 Business steps overview and process description...................................................................................................................... 46 4.................................................................................. 52 4........................................................................................................................................................................... 44 4......................................... 55 Critical functions ..... 38 Critical functions ...................................................................................................................................................... 47 General Information ............................................................................................................................................. 37 4.................. 5 6 PROCESSES CURRENTLY NOT SUPPORTED .................................. 57 General Information .......5 Time based and billing related revenue recognition (‘D’) .............................2 Process 7 – service based with invoice as first ....................................................................................................................................................... 54 4......................................................................................................................... All rights reserved...............................................................9..... 41 General Information ............................................................................................................................................. 37 Business steps overview and process description.................................... 51 Variations of the process .....................................................................................................................................1........... 50 General Information .......................... 46 Variations of the process ................................................................................. 53 General Information ........................ .....4......................................3 Additional function............................................................................ 85 Cost restrictions ..............................7 Assignment problem..................................................................... 75 6.............................................1 8..........5........ 89 Translation of foreign currencies ....3 Incorrect values / balances.......................1... 62 Reconcile FI and SD Values................................................................................................................................................................................................... 81 6.......................................................................................................................................................... All rights reserved........................................................4 status problem.............................. 89 10 11 IMPORTANT TO DO´S... 89 9............................................. 7 8 FUNCTIONAL ENHANCEMENTS ...........................................................................................................................................................................................................................5 Currency problem ............................................................ 85 Adjustment restrictions ............................................................................................................................................1..... 67 VF45 Overview ..........................................................Balances .1......................................................................................2 Inconsistencies between VBREVK / VBREVE/ VBREVR .............................5 General restrictions .........................................................3 SD-Monitoring with VF45................................................ 78 Results of VF48........... 75 6........................................................................1 Upper part of the screen ............................................ 83 RESTRICTIONS FROM SD SIDE ...doc Page: 5 Of: 91 .............................................. 78 6...............................................................................................................................4......................................................... 62 Check Account Balances .....................5 SD Monitoring with VF48 ..... 76 6.......4............5.............................................1........................................................................................4........................................................................................................................................................................ 68 6............................................................... 91 SAP AG File: RR_Best_Practice_Knowledge_Document_V1............... 78 VF48 selection parameter...... 70 VF47 Error categories ...............................................................................................1...................................VBREVx rows (SD tables).............................1 9...................................................................... 80 6......5.................................Revenue Recognition ............................ 76 6...... 75 6................................................2 8...........................4..... 85 Account restrictions ............1 Account determination errors: .....2 FI-Monitoring....4......................................................................................................4 8.......................................................................................................................................................................... 75 6.......................................1............... 64 Automatic Clearing of Accrual Accounts..........1..........2 REVREC and NON-REVREC Postings .........1............................................................................................................................................................................. 75 6................................ 76 6..6 Lock problem.....1...................................................... 90 IMPORTANT NOTES ......................................................................Best Practice Knowledge Document 6............................................... 65 6.................................................... 70 VF47 selection criteria ......................................1................................................................................. 86 Restrictions for specific processes........................................................................2 Lower part of the screen ..............................1 Table of Contents Monitoring aspects........ 70 VF47 Overview ....................................................................................................... 67 Selection criterias of VF45 .............4................................................. 85 8........................................................................................................................................................ 61 6......................................................................................................................................... 78 VF48 Overview ........................................................................................4 SD-Monitoring with VF47......................... 88 9 OTHER RESTRICTIONS ...........................3 8................................ 82 © SAP AG 07/2005............................... To make sure that compliance with the latest requirements is possible. like Generally Accepted Accounting Principles (US-GAAP). which provides a more technical view. Program modifications in a revenue recognition relevant process are discouraged because they may have unexpected effects and may result in an incorrect data stream for FI. Furthermore. as well as the Sarbanes-Oxley Act.and FIConsultants. This assessment is completely free of charge. the implementation must be subject to a pre go-live assessment to avoid a negative impact on the financial statement. the entire revenue recognition process should be approved by the responsible Head of Accounting and. In the whole document revenue recognition is set for SAP R/3 SD revenue recognition. In other words. if necessary. Also.Revenue Recognition . which is chargeable. For this request SAP offers consulting. FI consultants with experience in the area of Balance Sheet and P&L customizing have to setup the account assignment using SAP Best Practices and need to review the processes that are customized in the SD area. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. SAP provides some general recommendations and best practices for customers using SAP R/3 revenue recognition in the Sales and Distribution component (SD). it is necessary to monitor continuously (at a minimum monthly) the results by using the transaction VF45 and VF48. Any modifications made must be very closely monitored to prevent any negative impacts to the revenue recognition process. © SAP AG 07/2005. To implement revenue recognition in already existing processes (transfers of old data) a detailed concept creation is necessary. reviewed by the external auditor of the company. If customers want to use the revenue recognition functionality in their productive environment. International Accounting Standards (IAS) / Financial Reporting Standards (FRS). which delivers a process view of SD and FI and also by using transaction VF47. always implement the latest versions of the SD module. Additionally modifications have to be reviewed whether they are still in line with legal finance guidelines and regulations.doc Page: 6 Of: 91 . All rights reserved. the setup of the function is not only an SD task. Revenue recognition needs to be implemented by SAP-certified SD. the customer will have to ask explicit permission from SAP in order to use this functionality (detail information provided by note 768561 and 779366). SAP always recommends the application of the latest support package. Because of the nature of the revenue recognition function.Best Practice Knowledge Document 1 General recommendations 1 General recommendations In order to comply with the latest bookkeeping principles and current regulations. As revenue recognition provides a data stream into the financial system. especially the latest notes on revenue recognition. Always get the latest version of the Revenue Recognition Best Practices Guide. The comments in these documents are binding for all customers using the SAP R/3 revenue recognition functionality and the outlined recommendations have to be implemented.doc Page: 7 Of: 91 . All rights reserved. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. a deactivation has to be declined due to the direct impact to the accounting and the danger of data inconsistencies.Best Practice Knowledge Document 1 General recommendations If the revenue recognition functionality is activated once in the productive system landscape. The link can be found in note 779365. As IS-media solution is used. © SAP AG 07/2005. there is a Revenue Recognition Best Practices Guide available for this industry solution.Revenue Recognition . 2 The trigger and impact of the methods are: Revenue recognition is set up and initialized by the Sales and Distribution (SD) processes and therefore the revenue recognition method is assigned to the item category in the customizing of the SD module.doc Page: 8 Of: 91 . The accounts are: deferred revenue account and unbilled receivable account. 2. The available methods include: Revenue recognition at the point of billing (standard method) Time-related revenue recognition (the revenues are realized between specific set dates in equal proportions) Service-related revenue recognition (the revenues are realized on the basis of a specific event.Revenue Recognition .g. a sales order is delivered in a totally another time period than the invoice is created and released. This means for example. in which the service was carried out. a service contract with a related call off order. and not in the posting period.g.Best Practice Knowledge Document 2 Description of Business Area 2 Description of Business Area Many companies require that revenues are posted according to a time period. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. Service based revenue recognition e. The revenue recognition function in the SAP R/3 system helps you to fulfil these requirements and separates the revenue recognition process from the billing process. 2. Detailed information are provided by note 777996. Revenue recognition impacts the Financial Accounting by the account postings and therefore two additional accounts (balance sheet accounts) have to be created in the FI module. for rental contracts valid for a long time with a periodic billing plan.g.3 Typical Core Business Processes using the methods are: Time based revenue recognition e. The R/3 system offers a flexible solution to companies using various methods of revenue recognition. billing related (only for IS-M solution) 2.g. where services are included and a partial billing plan is assigned. that the revenues must be realized in the posting period. the goods issue for a delivery) Credit/Debit memo request with reference to preceding document Service based revenue recognition. Service based revenue recognition e. All rights reserved.1 © SAP AG 07/2005. e. in which the billing document was set up. e. The revenue recognition cancellation is not a real cancellation in the sense of a reverse posting. the invoicing has to be done before revenues may be realized. but not yet taken into account in the invoice.g. The balances on the accounts at the creation date of the cancellation are used as a basis. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. (valid for < 46C HP 49 and 470 < HP 23) With the cancellation of the revenue recognition (VF46) the revenue recognition posting can be reversed.g. 2. For a background run of VF44 report ZZVF44HN (note 377318) is available.Best Practice Knowledge Document 2 Description of Business Area Time based and billing related revenue recognition e. if revenues have been realized in error. This document mainly deals with the non-standard revenue recognition since only for these the special revenue recognition functionality is relevant. This is possible after the process is initialized (depending on the revenue recognition method). Further in this document the term ‘revenue recognition’ refers to the use of a revenue recognition method other than the standard revenue recognition. Revenues aren’t posted to the G/L account when releasing the invoice to accounting. All rights reserved.4 Business Process Specific Information The revenue recognition process is included in standard SD processes and is used in most cases with the billing plan functionality.doc Page: 9 Of: 91 . © SAP AG 07/2005. With the revenue recognition run (VF44) FI documents are created and the revenues will be realized. which are: o o unbilled receivables account (U/R account) deferred revenues account (D/R account) You can see in these accounts whether revenue has been realized. A function of revenue recognition is the grouping and monitoring of revenues in two additional general ledger accounts. or have been taken into account in the invoice.Revenue Recognition . but not yet realized. This document contains detailed information about: Necessary Customizing settings Supported processes and scenarios Limitations and restrictions placed on the solutions offered Recommendations for monitoring the revenue recognition process A guide for implementation You will find a link to the latest version of this document in SAP-note 779365. additional notes from note 813850 SP23.Revenue Recognition .Best Practice Knowledge Document 3 Implementing Revenue Recognition 3 3. when you don’t have the latest support package for your SAP-release. Recommended releases and support packages are (as for May 2005): 46C 470 SP49. © SAP AG 07/2005. The supported processes and functions are described in the document “Best Practice for Revenue Recognition”. which processes are supported by SAP-functionality. look at your system-status! Don’t start implementing or customizing revenue recognition. Also look at the “prerequisits for revenue recognition” mentioned in SAP-note 782758. the very first step to do is. All rights reserved. it is essential to know. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.1 Implementing Revenue Recognition Getting started R/3 SD Revenue Recognition Required releases and support packages When you want to start with revenue recognition. additional notes from note 813850 Supported processes in revenue recognition Before starting with the implementation of revenue recognition functionality.doc Page: 10 Of: 91 . It is necessary to monitor the Revenue Recognition function monthly.Revenue Recognition . © SAP AG 07/2005. the results by using the transactions VF47 which provides a more technical view as VF45 which delivers a transaction view of SD and FI.Best Practice Knowledge Document 3 Implementing Revenue Recognition In order to comply with the latest accounting principles and current financial regulations. as well as the 'SarbanesOxley Act'. Program modifications in a revenue recognition relevant process are discouraged because they may have unexpected effects and may result in an incorrect data stream for FI. 'International Accounting Standards' (IAS) / 'Financial Reporting Standards' (FRS). but also a FI task Revenue Recognition needs to be implemented by SAP-certified SD-and FI consultants. at a minimum.doc Page: 11 Of: 91 . like 'Generally Accepted Accounting Principles' (US-GAAP). SAP provides some general recommendations for customers using Revenue Recognition in the Sales and Distribution component (SD). Some information from this note: the setup of the function is not only an SD task. All rights reserved. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. doc Page: 12 Of: 91 . we want to ensure that customers who intend to use this function are aware of and agree to the necessary determining factors and prerequisites.1.1.Best Practice Knowledge Document 3 Implementing Revenue Recognition Starting with customizing 3. customers are still responsible for setting up. Only this way the posting process of the revenue recognition can be monitored. © SAP AG 07/2005. According to SAP-note 820417 the path on IMG Sales and Distribution -> Basic Functions -> Account Assignment/Costing -> Revenue Recognition -> Set Revenue Recognition For Item Categories is not open for any entering or changing of customizing data. Despite this special release process. you will find. Usage of R/3 SD Revenue Recognition functionality is under a special activation by SAP (see also SAP-notes 779366 and 605665). 3. that customizing item for revenue recognition cannot be entered or changed. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. All rights reserved.1. i. different account numbers must be used.1. using and operating the R/3 SD Revenue Recognition function.1 Global informations When you try to start customizing revenue recognition. The U/R account must be different from the D/R account.2 Presteps For the setup of revenue recognition processes you have to customize 1) FI accounts and their settings 2) SD item-categories and their settings 3) revenue recognition type on item category level 4) account determination The following accounts are needed for the representation of the revenue re-cognition process: Revenue account (recognized revenues) Receivables account (customer account) Revenues to be deferred (deferred revenue account or D/R account) Unbilled receivables (unbilled receivables account or U/R account) For the revenue account and receivables account you can use the accounts that you used before in the other standard processes.e.Revenue Recognition . By releasing the SD Revenue Recognition function separately. The account of the revenues to be deferred (in the following called D/R account) and the account of the unbilled receivables (in the following called U/R account) have to be created as new accounts. Best Practice Knowledge Document 3 Implementing Revenue Recognition An account number is never a revenue account that is used for the accruals accounts (U/R and D/R account). SAP AG File: RR_Best_Practice_Knowledge_Document_V1. All rights reserved.Revenue Recognition .doc Page: 13 Of: 91 . © SAP AG 07/2005. doc Page: 14 Of: 91 . Unbilled receivable and deferred revenue account have to be balance sheet accounts. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.1. because only these accounts and their balances are carried forward at fiscal year-end.Best Practice Knowledge Document 3 Implementing Revenue Recognition Customizing FI accounts and their settings 3. All rights reserved.1.Revenue Recognition .3 Unbilled receivable account and deferred revenue account For the unbilled receivable account and for the deferred revenue account the following settings in FI must be maintained: Transaction : Path: FS00 Financial Accounting -> General Ledger Accounting -> G/L Accounts -> Master Records -> G/L Account Creation and Processing -> Edit G/L Account (Individual Processing) -> Edit G/L Account Centrally © SAP AG 07/2005. On Tab “Type/Description” field “Balance sheet account” (SKA1-XBILK) must be set to YES. This indicates that the G/L account is managed as a balance sheet account. doc Page: 15 Of: 91 .Revenue Recognition . All rights reserved.Best Practice Knowledge Document 3 Implementing Revenue Recognition On Tab “Control data” the following fields have to be fill out: © SAP AG 07/2005. Field “Only balances in local currency” (SKB1-XSALH) to no *1) Field “Tax category” (SKB1-MWSKZ) with + (Only output tax allowed) or * (All tax types allowed) *2) Field “Posting without tax allowed” (SKB1-XMVNO) to yes Field “Open item management” (SKB1-XOPVM) to yes Field “Line item display” (SKB1-XKRES) to yes *5) *4) *3) SAP AG File: RR_Best_Practice_Knowledge_Document_V1. Best Practice Knowledge Document *1) 3 Implementing Revenue Recognition With “no” it Indicates that balances are updated not only in local currency when users post items to this account. this separate tax code cannot be used since jurisdiction codes cannot be specified for foreign customers. For example. even if a tax code has not been entered. because in this case you cannot use document summarization! Userexit xxxxxxxxx must be used to set the assignment in the SD invoices. Set up accounts with open item management if offsetting entries are to be assigned to the postings made to these accounts. *4) *5) With “yes” here it indicates that line item display is possible in this account. you would usually set up a separate tax code for the non-taxable transactions. The balance of these accounts is always equal to the balance of the open items. For line item display. © SAP AG 07/2005. you allow users to post items without tax codes in the corresponding expense and revenue accounts. however. With “yes” it determines that open items are managed for this account. Items posted to accounts managed on an open item basis are marked as open or cleared. Postings to these accounts represent incomplete processes or process-steps. In this case. When taxes are entered using jurisdiction codes. Be careful when using open item management. So the revenue recognition processes are able to post in different currencies. In revenue recognition it should be possible to post both.doc Page: 16 Of: 91 . taxable and non-taxable items.Revenue Recognition . the system stores an entry per line item in an index table which contains the link between line item and account. All rights reserved. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. to an account. *3) With “yes” it indicates that the account can still be posted. Possible entries: *2) Here just “+” or “*” are used. because manual posting will never change the revenue recognition tables.Revenue Recognition .Best Practice Knowledge Document 3 Implementing Revenue Recognition On Tab “Create/bank/interest” there is one entry necessary: © SAP AG 07/2005. Field “Post automatically” (SKB1-INTB) with yes This mark indicates that this account can only be posted to by the system using account determination tables. All rights reserved.doc Page: 17 Of: 91 . No manual posting is allowed. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. All rights reserved.Revenue Recognition .1.Best Practice Knowledge Document 3. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 18 Of: 91 .4 Revenue account 3 Implementing Revenue Recognition For the revenue account the following settings must be maintained: On Tab “Type/description” © SAP AG 07/2005. Set field “P&L statement acct” (SKA1-XPLACCT) to yes.1. For revenue accounts you need accounts with type P&L. Best Practice Knowledge Document 3 Implementing Revenue Recognition On Tab “Control data” maintain the following fields: © SAP AG 07/2005. Field “Posting without tax allowed” (SKB1-XMVNO) to yes Do not select field “Only balances in local crcy” (SKB1-XSALH).Revenue Recognition . Always NO SAP AG File: RR_Best_Practice_Knowledge_Document_V1. All rights reserved.doc Page: 19 Of: 91 . No additional customizing is necessary for revenue recognition.5 SD item-categories and their settings Normally when you are working with revenue recognition.doc Page: 20 Of: 91 .1. deliveries and invoices. you have to customize this in your item categories. when using revenue recognition. On sales item level.Revenue Recognition . All rights reserved.Best Practice Knowledge Document 3 Implementing Revenue Recognition SD-Customizing 3.1. you have to do some customizing. So you have to customize these documents. When you want to use a billing plan. you are working with SD contracts or customer orders. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. On sales document header level you have to do just the normal customizing for the sales document types. Path: Sales and Distribution -> Sales -> Sales Documents -> Sales Document Item -> Define Item Categories © SAP AG 07/2005. You can create your own billing plan type in customizing via path Sales and Distribution -> Billing -> Billing Plan -> Define SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 21 Of: 91 . for billing”: © SAP AG 07/2005. All rights reserved.Best Practice Knowledge Document 3 Implementing Revenue Recognition Field “relev. choose one of the above types or create your own billing plan type and the use this one for the item categories. Field “billing plan type”: For a billing plan type. Use “I” for the document item category you want to use with a billing plan.Revenue Recognition . doc Page: 22 Of: 91 .1. the usage of this category is explained. Possible entries for the field “Rev.Best Practice Knowledge Document 3 Implementing Revenue Recognition Billing Plan Types or transaction OVBI for periodic billing or transaction OVBO for milestone billing. Set Revenue Recognition For Item Categories © SAP AG 07/2005. 3. where the processes are described. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.Revenue Recognition . recognition” are: How to use this revenue recognition category? Referring to chapter 3 in this document.1. All rights reserved.6 Customizing revenue recognition type on item category level You will find this part of customizing via the following path: Sales and Distribution -> Basic Functions -> Account assignment / Costing -> Revenue Recognition Or via transaction: OVEP. 6 used with credit/debit memo timebased revenue recognition with memo request see chapter 4.2 recognition 3 Implementing Revenue Recognition used with standard revenue recognition used with timebased revenue see chapter 4.5 used with timebased and billing related revenue recognition is relevant for customers who use the ‘Industry Solution Media’. Details are described in the ‘Best Practice IS-M’ see chapter 4.7 used with credit/debit memo revenue recognition with reference to a preceding document SAP AG File: RR_Best_Practice_Knowledge_Document_V1.10 used with servicebased revenue recognition in return process with reference to a contract and calloff-order Category ‘D’: Category ‘E’: Category ‘F’: see chapter 4.8 used with credit/debit memo timebased revenue recognition without memo request see chapter 4.3 recognition used with servicebased revenue revenue see chapter 4.doc Page: 23 Of: 91 . see chapter 4.Best Practice Knowledge Document Here a short summary: Category blank ‘ ‘: Category ‘A’: see chapter 4.9 used with servicebased revenue recognition in return process with reference to an order see chapter 4.Revenue Recognition . All rights reserved.1 at time of billing see chapter 4.4 used with servicebased recognition in contracts with calloffs © SAP AG 07/2005.8 used with credit/debit memo timebased revenue recognition without memo request Category ‘B’: see chapter 4. the earlier of the following dates: Billing plan start date Start date of first settlement period SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 24 Of: 91 . the billing date of the first milestone In a periodic billing plan.Best Practice Knowledge Document 3. The accrual start date determines the start of the period in which revenues should be recognized.7 3 Implementing Revenue Recognition Customizing revenue recognition accrual start date Selects the start date for the accrual period and is relevant for the revenue recognition type A.1. © SAP AG 07/2005.1. All rights reserved. You have the following options: Proposal based on contract start date Revenue recognition proposes the start date of the sales contract for the item as the accrual start date.Revenue Recognition . Proposal based on billing plan start date Revenue recognition proposes one of the following dates as the accrual start date: • • In a milestone billing plan. doc Page: 25 Of: 91 . (SAKN2) revenue account D/R account SAP AG File: RR_Best_Practice_Knowledge_Document_V1. You will find this item via path Sales and Distribution -> Basic Functions -> Account Assignment/Costing -> Revenue Recognition -> Maintain Account Determination or transaction VKOA. both the revenue account and the account for deferred revenue amounts must be maintained in the revenue account determination. In the SD module. This occurs in customizing transaction according the following example: © SAP AG 07/2005. Assign G/L accounts for revenues and deferred revenues: G/L account no.1. All rights reserved. (SAKN1) Provision acc.Best Practice Knowledge Document 3.8 Account determination 3 Implementing Revenue Recognition Next customizing step is the account determination.Revenue Recognition .1. If this is the case. the system performs a reconciliation account determination within the revenue recognition and uses the so determined reconciliation account.doc Page: 26 Of: 91 . (note : 644296) © SAP AG 07/2005. Maintain NonBldRec. All rights reserved. U/R account SAP AG File: RR_Best_Practice_Knowledge_Document_V1.Revenue Recognition . the account for unbilled receivables (U/R account) is maintained depending on the reconciliation account and the associated chart of accounts.Best Practice Knowledge Document Assign account for unbilled receivables: 3 Implementing Revenue Recognition In customizing transaction OVUR. the system checks whether the reconciliation account determination is active. There are two possibilities for the determination of the reconciliation account: 1) The reconciliation account is taken from the customer master record of the payer. 2) For the billing type assigned to the sales document. Companies use standard revenue recognition. if they want to post revenues in Financial Accounting. For each core business processes using a chosen revenue recognition method two processes are described to display the different account postings depending on the sequence. partial invoicing of partial revenue recognition included. No special revenue recognition functionality is used.1 Standard Revenue Recognition at time of billing General Information Process 1 is the R/3 standard method for revenue recognition consisting of revenue recognition at the time of billing. The description is simplified and the process flow productive landscapes are much more complex. Within the process flow the separate steps can be done in reverse order. as soon as an invoice is released to accounting. especially the chronological order of the creation/releasing of the invoice and the posting of the revenues is variable.Revenue Recognition .Best Practice Knowledge Document 4 Description of Core Business Processes 4 Description of Core Business Processes The illustration of typical core business processes show an overview of the suggestive process flow based on the selected revenue recognition method. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. 4. There is no relation to values done and there is no partial delivery. Revenue recognition method = ‘ ‘ (blank). All rights reserved. © SAP AG 07/2005.doc Page: 27 Of: 91 . Revenue Recognition .Best Practice Knowledge Document 4 Description of Core Business Processes Business steps overview and process description © SAP AG 07/2005. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 28 Of: 91 . Will not be discussed further as this process is the standard billing process with the standard revenue recognition at the time of billing. Variations of the process Nothing. Additional important information Nothing. All rights reserved. Critical functions Nothing. Best Practice Knowledge Document 4 Description of Core Business Processes 4.Revenue Recognition . 4. it is possible to carry out recognition over a specific period of time.2 Time based revenue recognition (‘A’) General Information Using time-related revenue recognition.1 Process 2 – time based with VF44 as first As a first step in the process the sales contract is created. which can contain a billing plan. Business steps overview and process description © SAP AG 07/2005. An example of this is revenue recognition for the length of a service or rental contract. with periodic billing plans and with milestone billing plans. which have to be billed as well as SAP AG File: RR_Best_Practice_Knowledge_Document_V1.1. Time-related revenue recognition can be used for single billing document items without billing plan functionality. Revenue recognition method = ‘A’. All rights reserved. The proportions for the periods are equal.doc Page: 29 Of: 91 . Process 3 demonstrates the process when the invoice is posted before transaction VF44. This sales document contains the line items.2. Process 2 characterizes that transaction VF44 is used before invoice. containing information of the invoice. Since the revenue recognition is now initialized. which posts on the reconciliation account ‘unbilled revenues’ and on the revenue account. When the invoice is created and released for accounting. In such cases another revenue account (deferred account) can be posted. The revenue recognition tables are also updated by this step.2 Process 3 – time based with invoice as first © SAP AG 07/2005. The start and end dates are determined on item level in the sales document. If only a partial billing took place or was realized. This triggers the update of the control lines with the realized value and the new balance and the update of the revenue lines.doc Page: 30 Of: 91 .Best Practice Knowledge Document 4 Description of Core Business Processes the relevant conditions. The number of periods between these dates is determined using the financial calendar for the company code assigned to the document. Here the billing plan dates or the contract data dates will be used.1. All rights reserved. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. A new reference line is created. The saving of this document triggers the creation of control lines (VBREVK) and the revenue lines (VBREVE) for each period.Revenue Recognition .2. According to the number of periods and the amount to be billed. which balances (or reduces) the reconciliation account and posts on the receivables account. With time-related revenue recognition the recognition is carried out between a specific start and end date in equal parts. and the control lines are updated as well. 4. the steps following the order creation may be repeated for further periods until the sales document is completed. the revenue lines are calculated. another accounting document is created. it is possible to realize the revenue using transaction VF44. In FI an accounting document is automatically created. In such cases another revenue account (unbilled receivable account) can be posted. Critical functions A contract will be used without contract data and without billing plan. This sales document contains the line items. The start and end dates are determined on item level in the sales document. which have to be billed as well as the relevant conditions. and the new condition is using separate accounts. The number of periods between these dates is determined using the financial calendar for the company code assigned to the document. an accounting document is automatically created. as there is no start and no end date. In this case a billing plan has to be used. When the invoice is first created and released to accounting. It posts to a different reconciliation account called ‘deferred revenues’ and to the receivables account. Also in FI. the steps following the order creation may be repeated for further periods until the sales document is completed. This triggers the update of the control lines and the update of the revenue lines. As a consequence no VBREVE can be created. Note 496721 explain the solution: the added condition has to be classified in a way that it is not relevant for revenue recognition. which then replaces the contract. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. This triggers the same follow on steps. an accounting document is created. With time-related revenue recognition the recognition is carried out between a specific start and end date in equal parts. Additional important information Nothing. Instead of a contract. According to the number of periods and the amount to be billed. The saving of this document triggers the creation of control lines (VBREVK) and the revenue lines (VBREVE) for each period. The invoice cannot be released to accounting. not in the contract/order. All rights reserved. which posts on the reconciliation account ‘deferred revenues’ and on the revenue account. This event also triggers the update of the control lines with the realized value and the new balance and creates the reference lines. Now transaction VF44 runs.Best Practice Knowledge Document 4 Description of Core Business Processes As a first step in the process the sales contract is created. which can contain a billing plan. a sales order can be used as sales document in this process. Variations of the process Nothing.Revenue Recognition . As a consequence the posted values from VF44 would differ from the values posted by the billing document. © SAP AG 07/2005.doc Page: 31 Of: 91 . Additional steps of the process can include the delivery of items and posting goods issue which do not affect the revenue recognition process. the error message F5 702 would appear. If only a partial billing took place or was realized. A condition is added manually in the invoice. Here the billing plan dates or the contract data dates will be used. the revenue lines are calculated. if the sales order contains no contract data. Revenue Recognition . All rights reserved. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 32 Of: 91 .Best Practice Knowledge Document 4 Description of Core Business Processes © SAP AG 07/2005. Revenue Recognition . Process 4 demonstrates the process. All rights reserved. Revenue recognition method = ‘B’. Business steps overview and process description 4. you can carry out recognition on the basis of a specific event. © SAP AG 07/2005.Best Practice Knowledge Document 4 Description of Core Business Processes 4.doc Page: 33 Of: 91 .1. where services are included.3.3 Service based revenue recognition (‘B’) General Information Using service-related revenue recognition.1 Process 4 – service based with VF44 as first SAP AG File: RR_Best_Practice_Knowledge_Document_V1. when the invoice is posted before transaction VF44. Process 5 demonstrates the process. when transaction VF44 is run before invoicing. An example of this is revenue recognition for a service contract. 4.2 Process 5 – service based with invoice as first © SAP AG 07/2005. which have to be billed. When the invoice is created and released to accounting. A new reference line is created containing information from the invoice.doc Page: 34 Of: 91 . which have to be billed as well as the relevant conditions. The saving of this document triggers the creation of the control lines (VBREVK) only.Revenue Recognition . In FI an accounting document is automatically created which posts to the reconciliation account ‘unbilled receivables’ and to the revenue account.Best Practice Knowledge Document 4 Description of Core Business Processes As a first step in the process the sales order or sales contract is created.3. a new balance. This sales document contains the line items. This sales document contains the line items. No revenue lines are created at this stage. goods issue is posted.1. The revenue recognition tables are also updated by this step. the line items are copied into this document. When the goods have left the company stock. the control lines will also be updated. another accounting document is created which balances (or reduces) the reconciliation account and posts to the receivables account. and the update of the revenue lines. This triggers the update of the control lines with the realized value. The next process step consists of the creation of the delivery with reference to the order/contract. This triggers the creation of the revenue lines (VBREVE) in service based revenue recognition according to the document data. It is now possible to realize the revenue using transaction VF44. The goods are picked either with lean warehouse management or with full warehouse management including transfer orders. All rights reserved. As a first step in the process the sales order or sales contract is created. as well as the relevant SAP AG File: RR_Best_Practice_Knowledge_Document_V1. A new reference line is created containing information from the invoice. All rights reserved. The goods are picked either with lean warehouse management or with full warehouse management including transfer orders. The revenue recognition tables are updated by this step. In FI an accounting document is automatically created. When the goods have left the company stock. The adjustments in case of under/over delivery. the line items are copied into this document. An accounting document is created. an adjustment is necessary for the revenues. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. Critical functions If the order item is relevant for ‘delivery-related-invoicing’ (FKREL = A) and there is a under/over delivery (there is more ordered than delivered/ there is more delivered than ordered) the value. The revenue lines have to be updated. are not possible for contracts using performance based revenue recognition. It is necessary to adjust the quantity of the order according to the delivery quantity. The adjustment process for contracts is not supported for < 46C HP 48 and 470 < HP 22) Variations of the process Nothing. If the order item is relevant for ‘order-related-invoicing’ (FKREL = B or I) and there is a under/over delivery (there is more invoiced than delivered/ there is more delivered than invoiced) the value. which is delivered and invoiced. This triggers the update of the control lines and the update of the revenue lines. Now the invoice is created and released to accounting. This triggers the creation of the revenue lines (VBREVE) in service based revenue recognition according to the document data. This is done by the system as soon as a reason for rejection is set. has to be considered as revenues. The next process step consists of the creation of the delivery with reference to the order/contract. price or time changes as described in order processing. which is ordered and invoiced.Revenue Recognition . It is necessary to adjust the revenues and to complete the order process. © SAP AG 07/2005. If there are changes of condition values or time data in the sales order. which posts to the reconciliation account ‘deferred revenue’ and to the revenue account. The saving of this document triggers the creation of the control lines (VBREVK) only.doc Page: 35 Of: 91 . The adjustment is only done. goods issue is posted. the control lines will also be updated.Best Practice Knowledge Document 4 Description of Core Business Processes conditions. No revenue lines are created at this stage. which posts to the reconciliation account ‘deferred revenue’ and to the receivables account. if there wasn’t an invoice created and if there was a complete delivery (vbup-lfsta = C). After this step transaction VF44 is used. has to be considered as revenues. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. All rights reserved.Revenue Recognition .Best Practice Knowledge Document Additional important information Nothing. 4 Description of Core Business Processes © SAP AG 07/2005.doc Page: 36 Of: 91 . All rights reserved. In the SAP AG File: RR_Best_Practice_Knowledge_Document_V1.4 Service based revenue recognition (‘B’) contract with call off General Information Using service-related revenue recognition you can carry out recognition on the basis of a specific event. Business steps overview and process description 4.doc Page: 37 Of: 91 . Process 6 demonstrates the process. An example of this is revenue recognition for a contract with a call off order while the contract item is invoiced and the linked call off order item is delivered.1 Process 6 – service based with VF44 as first The first step in this process is the creation of the sales contract. which may contain a billing plan. © SAP AG 07/2005. when transaction VF44 is run before invoicing.Best Practice Knowledge Document 4 Description of Core Business Processes 4. Process 7 demonstrates the process. This contract creation generates control lines in table VBREVK. Revenue recognition method = ‘B’ for the contract and call off order.Revenue Recognition . when the invoice is posted before transaction VF44.4.1. The created FI document posts to the unbilled account.Revenue Recognition . 4.2 © SAP AG 07/2005. When the SAP AG File: RR_Best_Practice_Knowledge_Document_V1. When the goods have left the company stock. After the invoice is created with reference to the contract and released to accounting. In the subsequent step. Process 7 – service based with invoice as first The first step in this process is the creation of the sales contract. goods issue will be posted.4. when transaction VF44 is run. The next process step is that the goods are picked either with lean warehouse management or with full warehouse management including transfer orders. This triggers the creation of the revenue lines (VBREVE).Best Practice Knowledge Document 4 Description of Core Business Processes second step a call off order is generated with reference to the contract and a delivery may have been created with reference to the call off order. All rights reserved. which posts to the unbilled account.1. The next process step is that the goods are picked either with lean warehouse management or with full warehouse management including transfer orders. This contract creation generates control lines in table VBREVK.doc Page: 38 Of: 91 . In a second step a call off order is generated with reference to the contract and a delivery may have been created with reference to the call off order. an update of the control and revenue lines is generated. the reference lines will be created and the control lines will be updated. which may contain a billing plan. Additionally an accounting document is automatically created in FI. While transaction VF44 runs in the next step. an update of the control and revenue lines is generated. the process should be completed. The difference between billed and recognized value has to be posted by a credit memo. If there is an over/under delivery of the call-off order items. Changes of the revenue recognition accounts (D/R account / U/R account) are not supported.Revenue Recognition . Critical functions If terms are added manually in the call-off order. In case of changes of condition values or time data in the contract / call-off order an adjustment for the revenue is only possible. Variations of the process In accordance with the above described process. © SAP AG 07/2005. which posts to the deferred account. Before an invoice is created. which posts to the deferred account. In the subsequent step an invoice is created and released to accounting. Important remark: The invoice has to be created in reference to the call off order (order-related invoicing) and NOT in reference to the delivery (delivery-related invoicing). revenue lines (VBREVE) are created. control lines are created in table VBREVK and during saving of the call off order revenue lines are generated in table VBREVE. This triggers the creation of the revenue lines (VBREVE). Additionally an accounting document is automatically created in FI. the price and time changes have to be done correspondingly in the contract item and the related call-off order item. The contract will be invoiced and the call off order will not be delivered: While the contract is created. reference lines (VBREVR) will be created and control lines (VBREVK) will be updated. the saving of the call off order creates control lines (VBREVK).Best Practice Knowledge Document 4 Description of Core Business Processes goods have left the company stock. The creation of a credit memo in reference to a credit memo request doesn’t lead to the clearing of the balance and therefore the credit memo must be created in reference to the billing document.doc Page: 39 Of: 91 . where the invoice is related to the contract and the call off order is to be delivered. goods issue is posted. two other scenarios exist: The call off order will be invoiced and delivered: When the call off order is created with reference to the contract. All rights reserved. After the related delivery has posted the goods issue. There is no clearing of the balance on the clearing account. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. Additionally an accounting document is automatically created in FI. if there is no invoice created. there must be a link to a contract item otherwise the call-off order items are handled separately. The call of order will be invoiced and delivered: The item category of the contract should be customized with revenue recognition relevance ‘ ‘. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. All rights reserved.doc Page: 40 Of: 91 . the following customizing settings must be configured in the sales document types: The contract will be invoiced and the call off order will be delivered: The billing relevance of the contract item category should be ‘B’ or ‘I’. while the billing relevance of the call off order item category should be ‘ ‘. © SAP AG 07/2005. The revenue recognition relevance of the contract and the call off order item categories should be set to ‘B’. The contract will be invoiced and the call off order will not be delivered: The billing relevance of the contract item category should be ‘B’ or ‘I’. the item category of the call off order with ‘B’.Revenue Recognition . The billing relevance of the contract item category should be ‘ ‘. The revenue recognition relevance of the contract and the call off order item categories should be set to ‘B’. while the billing relevance of the call off order item category should be ‘B’. while the billing relevance of the call off order item category should be ‘ ‘.Best Practice Knowledge Document Additional important information 4 Description of Core Business Processes In order to implement the three scenarios. Afterwards transaction VF44 is run. The contract or the sales order will be created.doc Page: 41 Of: 91 . you can carry out recognition on the basis of an invoice over a specific period of time.5 Time based and billing related revenue recognition (‘D’) General Information Using time based and billing related revenue recognition. Process 8 will be initialized at the point in time when the billing document is released to accounting. Business steps overview and process description © SAP AG 07/2005. An example of this is revenue recognition for the length of a service or rental contract after the invoice is created and released.Best Practice Knowledge Document 4 Description of Core Business Processes 4. After the invoice was released to accounting all the Revenue Recognition tables are SAP AG File: RR_Best_Practice_Knowledge_Document_V1. The proportions for the periods are equal.Revenue Recognition . Then the invoice will be created. All rights reserved. Revenue recognition method = ‘D’. This triggers the update of the control lines with the realized value.doc Page: 42 Of: 91 . Critical functions Nothing. the new balance and the update of the revenue lines. All rights reserved. The releasing of the invoice cancellation document triggers the creation of separate control. an accounting document is automatically created which posts to the reconciliation account ‘deferred revenues’ and on the revenue account. It is now possible to realize the revenue using transaction VF44. which do not affect the revenue recognition process.Best Practice Knowledge Document 4 Description of Core Business Processes filled.Revenue Recognition . Variations of the process Additional steps of the process can include the delivery of items and post goods issue. The revenue recognition cancellation process has no reference to the original revenue recognition process. revenue and reference lines. Additional important information The cancellation of the invoice using transaction VF11 is starting its own revenue recognition process. the control lines and the revenue lines are now available for the Revenue Recognition Process. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. In FI. The reference lines. © SAP AG 07/2005. The invoice posts to the deferred account and to the receivable account. The credit memo process has the opposite posting logic to the billing. whether a balance exists on the deferred revenue (D/R) account. when posting to the reconciliation accounts. When creating and transferring a credit memo to accounting. it is possible to carry out recognition over a specific period of time. Business steps overview and process description SAP AG File: RR_Best_Practice_Knowledge_Document_V1. An example of this is revenue recognition for the length of a credit/debit memo request. the system checks.6 Time based revenue recognition in credit/debit processing with a credit/debit memo request (‘A’) memo General Information Using time-related revenue recognition in a credit/debit memo processing. The proportions for the periods are equal. Revenue recognition method = ‘A’. when the credit memo is posted before transaction VF44 is ran. The credit/debit memo request is created in reference to a contract. order or invoice.Revenue Recognition . Process 10 demonstrates the credit memo processing. otherwise the posting is made to the unbilled receivables (U/R) account. The debit memo process has the same posting logic to the billing.Best Practice Knowledge Document 4 Description of Core Business Processes 4.doc Page: 43 Of: 91 . The credit/debit memo process with a credit/debit memo request sets up its own revenue recognition tables. when transaction VF44 is ran before creation of the credit memo. Process 9 demonstrates the credit memo processing. All rights reserved. © SAP AG 07/2005. The number of periods between these dates is determined using the financial calendar for the company code assigned to the document. an accounting document is automatically created.Revenue Recognition . In case of the credit memo process.Best Practice Knowledge Document 4. The revenue lines are calculated based on the number of periods and the amount to be billed. The revenue recognition tables are also updated by this step. which have to be billed as well as the relevant conditions.1. the new balance and the update of the revenue lines.6. This triggers the update of the control lines with the realized value. which may contain a billing plan.doc Page: 44 Of: 91 . it is possible to realize the revenue using transaction VF44. In case of the debit memo process. The start and end dates are determined on item level in the sales document.1 4 Description of Core Business Processes Process 9 – time based with VF44 as first © SAP AG 07/2005. This sales document contains the line items. which posts to the accruals account ‘deferred revenues’ and to the revenue account. A SAP AG File: RR_Best_Practice_Knowledge_Document_V1. When the invoice is created and released to accounting. an accounting document is automatically created. which balances (or reduces) the accruals account and posts to the receivables account. Here the billing plan dates or the contract data dates will be used. another accounting document is created. Since the revenue recognition is now initialized. which posts to the accruals account ‘unbilled receivables’ and to the revenue account. As a first step in the process the credit/debit memo request is created. All rights reserved. With time-related revenue recognition the recognition is carried out between a specific start and end date in equal parts. The saving of this document triggers the creation of control lines (VBREVK) and the revenue lines (VBREVE) for each period. doc Page: 45 Of: 91 . As a result. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. which have to be billed as well as the relevant conditions. The number of periods between these dates is determined using the financial calendar for the company code assigned to the document. 4. This sales document contains the line items. The saving of this document triggers the creation of control lines (VBREVK) and the revenue lines (VBREVE) for each period.Best Practice Knowledge Document 4 Description of Core Business Processes new reference line is created.Revenue Recognition . which can contain a billing plan.6.2 Process 10 – time based with invoice as first © SAP AG 07/2005. All rights reserved. Here the billing plan dates or the contract data dates will be used. When the invoice is created and released to accounting a different accruals account is posted together with the receivables account in the accounting documents. According to the number of periods and the amount to be billed. the revenue lines are calculated. containing information from the invoice and the control lines are also updated. The start and end dates are determined on item level in the sales document. the opposite accruals accounts will be used for the credit memo process than are used for the debit memo process (invoices and debit memos have the same posting logic in accounting). As a first step in the process the credit/debit memo request is created.1. With time-related revenue recognition the recognition is carried out between a specific start and end date in equal parts. In case of the credit memo process the accruals account is called ‘unbilled receivables’ account. As a result the opposite accruals accounts will be used for the credit memo process than for the debit memo process (invoices and debit memos have the same posting logic in accounting).doc Page: 46 Of: 91 . This triggers the update of the control lines with the realized value and the new balance and updates the revenue lines as well. Additional important information Nothing. It triggers the same steps as described previously.Revenue Recognition . Critical functions Nothing. Then transaction VF44 runs. Variations of the process The credit/debit memo processing with a credit/debit memo request can also be used as standalone process. © SAP AG 07/2005. All rights reserved.Best Practice Knowledge Document 4 Description of Core Business Processes In case of the debit memo process the accruals account is called ‘deferred revenues’ account. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. The revenue recognition method = ‘F’. it is possible to carry out revenue recognition over a specific period of time equal to the original process.7 Credit/debit memo revenue recognition with reference to preceding document (‘F’) General Information Using credit/debit memo revenue recognition with reference to a preceding document. The proportions for the periods are equal.doc Page: 47 Of: 91 . SAPKH46C28). order or invoice. The credit/debit memo process updates the revenue recognition tables of the preceding sales process. SAPKH46B38. All rights reserved. An example of this is revenue recognition for the length of a credit/debit memo request. The credit/debit memo request is created request in reference to a contract. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. © SAP AG 07/2005.based revenue recognition type ‘A’ For preceding sales documents with type ‘B’ the note 839596 is relevant Process 11 consider only type ‘A’ and will be initialized at the point in time. No new revenue recognition tables will be created. Afterwards transaction VF44 is ran. when the credit memo is released to accounting. It is implemented with note 447513 (SAPKH45B50.Best Practice Knowledge Document 4 Description of Core Business Processes 4.Revenue Recognition . The posting to the accounts depends on whether there is a balance on the D/R or the U/R account (revenue recognition run is done and/or invoice is released to accounting in the original process). SAP AG File: RR_Best_Practice_Knowledge_Document_V1. In this case the subsequent credit/debit memo generates reference lines (VBREVR) corresponding to the reference document. the system checks whether the reference document is relevant for 'time-related revenue recognition' (method 'A'). It is now possible to realize the corrected revenue using transaction VF44.doc Page: 48 Of: 91 .Best Practice Knowledge Document 4 Description of Core Business Processes Business steps overview and process description © SAP AG 07/2005. The credit/debit memo process will be created with reference to a preceding sales document. This triggers the update of the control lines and the update of the revenue lines. All rights reserved.Revenue Recognition . In FI an accounting document is automatically created which posts to the accruals account of either the D/R or U/R and to the revenue account. When this type is set for the credit/debit memo request. and with revenue recognition type ‘F’ it updates the revenue recognition tables of the preceding sales process. In detail: In the VBREVK the field ACC_VALUE and in VBREVE the field WRBTR have to be updated.Revenue Recognition . Additional important information Valid for 46C < SP49 and 470 < SP22: © SAP AG 07/2005. If revenues have already been posted. This update will not be executed automatically.Best Practice Knowledge Document Critical functions 4 Description of Core Business Processes Variations of the process Nothing. the system must enable a correction posting (adjustment line). All rights reserved. it is necessary to do a manual update using VA02/VA42 or to run report ZZ_SALES_DOC_CHANGE from note 385149. For updating the revenue recognition tables (VBREVK and VBREVE) of the preceding sales process (after the credit/debit memo was created). Valid for 46C > SP 49 and 470 > SP22: For the update you can use the VF42 and report SDRRAV54 (description see note 780993) SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 49 Of: 91 . Revenue Recognition - Best Practice Knowledge Document 4 Description of Core Business Processes 4.8 Time based or service based revenue recognition recognition in credit/debit memo processing without a credit/debit memo request (‘A’ or ‘B’) General Information Using time-related revenue recognition in a credit/debit memo processing, it is possible to carry out recognition over a specific period of time equal to the original process. Using service-related revenue recognition in a credit/debit memo processing, it is possible to carry out recognition on the basis of a specific event equal to the original process. The credit/debit memo is created in reference to an invoice and there is no credit/debit memo request. No new revenue recognition tables will be created. The credit/debit memo process updates the revenue recognition tables of the preceding sales process. © SAP AG 07/2005. All rights reserved. The revenue recognition relevance is transferred from the previous document. Revenue recognition method = ‘A’ or ’B’. Process 12 will be initialized at the point in time when the credit memo is released to accounting. Afterwards transaction VF44 is ran. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 50 Of: 91 Revenue Recognition - Best Practice Knowledge Document 4 Description of Core Business Processes Business steps overview and process description © SAP AG 07/2005. All rights reserved. If a credit memo/debit memo is created and the reference document is the billing document, the credit memo/debit memo updates the revenue recognition tables of the preceding sales process. Therefore the posting to the accounts depends on whether there is a balance on the D/R or the U/R account (revenue recognition run is run and/or invoice is released to accounting). Critical functions Using revenue recognition method ‘B’ in a credit/debit memo created with reference to the preceding invoice in a contract process is not supported. This does not apply to order processes. Variations of the process SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 51 Of: 91 Revenue Recognition - Best Practice Knowledge Document 4 Description of Core Business Processes When using Revenue recognition method = ‘D’, the credit memo/debit memo doesn’t update the existing revenue recognition tables of the preceding sales process. The credit memo/debit memo is starting its own revenue recognition process. The release of the credit memo/debit memo document triggers the creation of separate control, revenue and reference lines. Additional important information For updating the revenue recognition tables (VBREVK and VBREVE) of the preceding order process (after the credit/debit memo was created) it is necessary to do a manual update using va02/va42 OR to run report ZZ_SALES_DOC_CHANGE from note 385149. This update will not be executed automatically. In detail: In the VBREVK the field ACC_VALUE and in the VBREVE the field WRBTR have to be updated. If revenues have already been posted, the system must enable a correction posting (adjustment line). © SAP AG 07/2005. All rights reserved. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 52 Of: 91 The return order is created in reference to an order after the order was delivered. No new revenue recognition tables will be created. Process 13 demonstrates the process when transaction VF44 is ran before creation of the credit memo.Best Practice Knowledge Document 4 Description of Core Business Processes 4. The return process updates the revenue recognition tables of the preceding sales process. Business steps overview and process description SAP AG File: RR_Best_Practice_Knowledge_Document_V1.Revenue Recognition . © SAP AG 07/2005.doc Page: 53 Of: 91 . Process 14 demonstrates the process when the credit memo is posted before transaction VF44 is run. Revenue recognition method = ‘B’.9 Service based revenue recognition in return processing with reference to an order (‘B’) General Information Using service-related revenue recognition in a return processing can carry out recognition on the basis of a specific event equal to the original process. All rights reserved. The return order is invoiced with a credit memo. Revenue Recognition - Best Practice Knowledge Document 4.9.1.1 4 Description of Core Business Processes Process 13 – service based return processing with reference to an order with VF44 as first © SAP AG 07/2005. All rights reserved. The return process will be created with reference to a preceding sales document and with revenue recognition type ‘B’. It updates the revenue recognition tables of the preceding sales process. As a first step the return sales order is created with reference to the sales order. This sales document contains the line items, which have to be credit as well as the relevant conditions. The saving of this document triggers not the update of the control lines (VBREVK). No revenue lines are created at this stage. The next process step consists of the creation of the delivery with reference to the return order; the line items are copied into this document. The goods receipt is posted. This triggers the creation of the revenue lines (VBREVE) in service based revenue recognition according to the document data. It is now possible to realize the revenue using transaction VF44. This triggers the update of the control lines with the realized value, a new balance, and the update of the revenue lines. In FI an accounting document is automatically created, which posts to the reconciliation account D/R or U/R and to the revenue account. The posting to the accounts depends on whether there is a balance on the D/R or the U/R account (revenue recognition run is done and/or invoice is released to accounting in the original process). SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 54 Of: 91 Revenue Recognition - Best Practice Knowledge Document 4 Description of Core Business Processes When credit memo is created and released to accounting, another accounting document is created, which balances (or reduces) the reconciliation account and posts to the receivables account. The revenue recognition tables are also updated by this step. A new reference line is created containing information from the credit memo, the control lines will also be updated. 4.9.1.2 Process 14 – service based return processing with reference to an order with invoice as first © SAP AG 07/2005. All rights reserved. The return process will be created with reference to a preceding sales document and with revenue recognition type ‘B’. It updates the revenue recognition tables of the preceding sales process. As a first step the return sales order is created with reference to the sales order. This sales document contains the line items, which have to be credit as well as the relevant conditions. The saving of this document triggers not the update of the control lines (VBREVK). No revenue lines are created at this stage The next process step consists of the creation of the delivery with reference to the return order; the line items are copied into this document. The goods receipt is posted. This triggers the creation of the revenue lines (VBREVE) in service based revenue recognition according to the document data. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 55 Of: 91 Revenue Recognition - Best Practice Knowledge Document 4 Description of Core Business Processes In the subsequent step a credit memo is created with reference to the return sales order and released to accounting, reference lines (VBREVR) will be created and control lines (VBREVK) will be updated. Additionally, an accounting document is automatically created in FI, which posts to the D/R or U/R account Therefore the posting to the accounts depends on whether there is a balance on the D/R or the U/R account (revenue recognition is run and/or invoice is released to accounting). While transaction VF44 runs in the next step, an update of the control and revenue lines is generated. Additionally an accounting document is automatically created in FI. Critical functions Variations of the process Additional important information © SAP AG 07/2005. All rights reserved. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 56 Of: 91 © SAP AG 07/2005. Revenue recognition method = ‘B’. The return process updates the revenue recognition tables of the preceding sales process. The return order is created in reference to the call off order after the call off order was delivered. No new revenue recognition tables will be created. Afterwards transaction VF44 is run. Business steps overview and process description SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 57 Of: 91 . There won’t be a credit memo for the return process due to the call off order isn’t billing relevant. All rights reserved.Revenue Recognition . In the original process the contract item is invoiced and the linked call off order item is delivered.Best Practice Knowledge Document 4 Description of Core Business Processes 4. Process 15 will be initialized at the point in time when the goods issue posting is done for the return order.10 Service based revenue recognition in return processing with reference to a contract and call off order (‘B’) General Information Using service-related revenue recognition in a return processing with reference to a contract / call off order can carry out recognition on the basis of a specific event equal to the original process. the line items are copied into this document.Revenue Recognition . The goods receipt is posted. Afterwards it is possible to run transaction VF44. Critical functions Nothing Variations of the process In accordance with the above process. The saving of this document triggers not the update of the control lines (VBREVK). This triggers the creation of the revenue lines (VBREVE) in service based revenue recognition according to the document data. © SAP AG 07/2005. Also the return delivery and the return credit memo create their entries with the number of the return order. the saving of the call off order creates control lines (VBREVK). It updates the revenue recognition tables of the preceding sales process. In this process the sales contract is relevant for billing. This sales document contains the line items. where the invoice is related to the contract and the call off order is to be delivered. There is NO link between the call of order and the return process. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. The saving of the return order creates control lines (VBREVK) with the document number of the return order. an update of the control and revenue lines from the contract is generated. All rights reserved. The next process step consists of the creation of the delivery with reference to the return order. which posts to the D/R or U/R account Therefore the posting to the accounts depends on whether there is a balance on the D/R or the U/R account (revenue recognition is run and/or invoice is released to accounting). which have not to be credit.Best Practice Knowledge Document 4 Description of Core Business Processes The return process will be created with reference to a preceding sales document and with revenue recognition type ‘B’. After the related delivery has posted the goods issue. revenue lines (VBREVE) are created. No revenue lines are created at this stage. Important remark: The invoice has to be created in reference to the call off order (order-related invoicing) and NOT in reference to the delivery (deliveryrelated invoicing). another scenario exists: The call off order will be invoiced and delivered: When the call off order is created with reference to the contract. Additionally an accounting document is automatically created in FI. As a first step the return sales order is created with reference to the call off order. In the following return order processing the return order will be create with reference to the call off order.doc Page: 58 Of: 91 . the following customizing settings must be configured in the sales document types: The contract will be invoiced and the call off order will be delivered: The billing relevance of the contract item category should be ‘B’ or ‘I’. The call of order will be invoiced and delivered: The item category of the contract should be customized with revenue recognition relevance ‘ ‘. © SAP AG 07/2005. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. the item category of the call off order and the return order with ‘B’. All rights reserved. The revenue recognition relevance of the contract / call off order / return order item categories should be set to ‘B’.doc Page: 59 Of: 91 . while the billing relevance of the call off order and return order item category should be ‘ ‘. The billing relevance of the contract item category should be ‘ ‘. while the billing relevance of the call off order and the return order item category should be ‘B’.Best Practice Knowledge Document Additional important information 4 Description of Core Business Processes In order to implement the two scenarios.Revenue Recognition . © SAP AG 07/2005. CRM with revenue recognition. Revenue recognition in Scheduling Agreements. Changing of document currency in the order/contract after invoicing/revenue recognition. Revenue recognition for Third Party Processing.Best Practice Knowledge Document 5 Processes currently not supported 5 Processes currently not supported Revenue recognition for the internal billing in case of Cross Company processing. Revenue recognition in proof of delivery (POD) process. Revenue recognition in combination with treasury hedging functionality.doc Page: 60 Of: 91 . Revenue recognition for Taxes. IS-OIL processes with revenue recognition. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. All rights reserved. Standard process for migration of revenue recognition data from a former system to SAP R/3. Revenue recognition in Down Payments. Every migration is individual for every customer. Changing of revenue recognition accounts before note 568227 was implemented (important: restrictions in note 568227 have to be considered).Revenue Recognition . 1 Monitoring of the revenue recognition data Monitoring aspects When monitoring the revenue recognition data.doc Page: 61 Of: 91 . why is an accurate monitoring that important? It‘s the first time that SAP provides a functionality. The next question is. there are two parts of technically monitor this data and documents: • • FI-monitoring SD-monitoring © SAP AG 07/2005.Revenue Recognition . there is a decoupling of billing document and revenues posting in FI concerning both. All rights reserved.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data 6 6. which doesn‘t post the revenues directly with the billing document. that despite the mentioned decoupling finally those revenues are realised. An accurate monitoring ensures. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. That means. the time dimension as well as possible split of the revenue amounts. which are billed to the customer. but distributes the realisation of revenues over a certain range of periods. doc Page: 62 Of: 91 . All rights reserved.2 FI-Monitoring Check Account Balances In order to monitor the revenue recognition process.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data 6. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.Revenue Recognition . the first step is to check whether there are balances on the accrual accounts or not. © SAP AG 07/2005. To display balances on accounts use transaction FS10N. Revenue Recognition . © SAP AG 07/2005.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data If detailed information is required. All rights reserved. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. a drill-down to line item display is possible.doc Page: 63 Of: 91 . the document flow can be used first. The reconciliation can be done for a certain range of periods. A more value-oriented view is provided by the transaction VF45 from the sales perspective and FBL3N from the FI perspective. VF45 displays the deferred revenues. You can use transaction VF48 to compare the FI and SD values created by the billing process as well as by the revenue recognition run.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data Alternatively transaction FBL3N can be used in order to show the line items of an accrual account directly If open item management is used only the line items respectively the sales documents can be displayed which cause the balance on the account © SAP AG 07/2005.doc Page: 64 Of: 91 . SAP AG File: RR_Best_Practice_Knowledge_Document_V1.Revenue Recognition . In order to get an overview what happened in total with a sales document. they can be reconciled with the revenue recognition data in SD on an aggregated level. Reconcile FI and SD Values If balances are determined on the accrual accounts. Use to VA02/VA42 or VA03/VA43 to view the documentflow. All rights reserved. doc Page: 65 Of: 91 .Revenue Recognition . All rights reserved. it is recommended to use the automatic clearing process in FI with transaction F. already in use account.13. (1) Activate open item management in the master data of the accrual accounts (see customizing in chapter 9). Automatic Clearing of Accrual Accounts In order to monitor the accrual accounts effectively. The results of both views should fit together. create new accounts and do not change the open item management flag for an existing.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data the unbilled receivables. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. the billed and the realized amounts on the level of a sales document item. (2) As a basis for the automatic clearing of the open items the field ‚Assignment‘ has to be maintained in the customizing transaction ‚Prepare Automatic Clearing‘. Please note: If you haven‘t yet activated open item management. Prerequisites are: © SAP AG 07/2005. FBL3N can be used to show the relevant FI postings related to a revenue recognition sales document using the assignment field as a selection parameter. doc Page: 66 Of: 91 . All rights reserved. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. Therefore an SD user exit has to be implemented (SAP enhancement SDVFX004) © SAP AG 07/2005.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data (3) The standard revenue recognition fills the assignment field in the FI document in dependence from the revenue recognition type : revenue recognition type ‘A’: BSEG-ZUONR sales number and item number revenue recognition type ‘B’: BSEG-ZUONR sales number and item number revenue recognition type ‘D' BSEG-ZUONR invoice number and item number To enable an automatic clearing.Revenue Recognition . the billing run has to fill this field in the same matter. display or hide additional fields • transaction VF45 shows for SD documents. a balance on the account for not invoiced receivables and also on the account for deferred revenue amounts. both.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data 6. for which a revenue cancellation was posted via VF46. This display is incorrect.3 SD-Monitoring with VF45 VF45 Overview The transaction VF45 is a more value-oriented view from the sales perspective. The transaction displays the deferred revenues. All rights reserved. the unbilled receivables. the posting are correct.Revenue Recognition . The report created by this transaction contains detailed information at SD document item level: • • • © SAP AG 07/2005. subtotal. because the older versions o do not display the costs (VPRS) o have no direct link to the SD and FI documents involved o don’t have sort. posted revenues invoiced values balances on unbilled/deferred accounts Status of the process All related follow-on documents • • There are some restrictions when using transaction VF45. the billed and the realized amounts on the level of a sales document item. • always use the revised version of VF45 as distributed in note 787174. See note 777118 for explanation SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 67 Of: 91 . filter. The other fields can be used to increase the number of document to be analysed. • • • • Company code Sales document type Sales document item Sold-to party SAP AG File: RR_Best_Practice_Knowledge_Document_V1.Revenue Recognition . the field “sales document”. All rights reserved.Best Practice Knowledge Document Selection criterias of VF45 6 Monitoring of the revenue recognition data © SAP AG 07/2005. There is just one mandatory field in VF45.doc Page: 68 Of: 91 . All rights reserved.Revenue Recognition . From this report you can reach the follow-on document by double-click. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.doc Page: 69 Of: 91 .Best Practice Knowledge Document As a result you will get the following report: 6 Monitoring of the revenue recognition data © SAP AG 07/2005. various errors may occur during the processing of items. company code sales document type sales document number item number SAP AG mandatory entry. you have to fill out a full screen of selection criteria. All rights reserved.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data 6. Sales-. Nethertheless VF47 is a rather technical view on the revenue recognition tables.and FI-documents can be taken into account to search for inconsistencies beyond the revenue tables. billing. If a sales document contains items relevant for revenue recognition. Run VF47 every week.doc Page: 70 Of: 91 .Revenue Recognition . you want to analyse. VF47 should be scheduled as a frequent batch process. VBREVE and VBREVR and the appropriate sales documents. Enter the sales documents. For an analysis this report should not run in update mode (check box „Test Run Without Update“ has to be on) © SAP AG 07/2005. at least once in a month to be sure that there are no problems or errors in your revenue recognition data. In the following text the fields will be described. item numbers of the sales document File: RR_Best_Practice_Knowledge_Document_V1. VF47 selection criteria When starting VF47.4 SD-Monitoring with VF47 VF47 Overview The transaction VF47 is a central point in the early stage of analysis the Revenue Recognition on a customer’s system. The report of VF47 shows inconsistencies between the revenue recognition tables VBREVK. Incl. FI: If this flag is set. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. When you enter a date here. number of control lines Check types: © SAP AG 07/2005. the system ignores all billing documents that were created before this time. For example. the system attempts in addition to read the FI documents of the billing documents in order to simulate non-existing reference lines (VBREVR) and to include them in the calculation of the control lines.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data General Data. Only check current Documents: The systems only checks lines that have not been completed yet. All rights reserved. Technically. Thus this analysis program can determine control lines from the detail lines even if reference lines are missing and then compare them with the control lines of the database. This means that only those control lines are checked that do not have status ‘C’ (VBREVKRRSTA) Check Reference Lines: If this flag is set. Packaging Number of lines within a package accessing database on package level max. the system reconciles the document flow with the reference table Docs From: It is possible that not all billing documents may be used for a check after a migration. this can occur if current contracts were copied from a preceding system. the system checks whether all items relevant for revenue recognition from the relevant billing documents have an entry in the reference table (VBREVR).Revenue Recognition .doc Page: 71 Of: 91 . The relevant FI documents are identified via the assignment number ‘Incl. The system therefore attempts to link the billing document with the generated FI document. you can carry out the revenue recognition (VF44) on collective processing level as File: RR_Best_Practice_Knowledge_Document_V1. the reference lines cannot be simulated here either.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data Compr. the system also reads the sales document types (if it has not done so yet) in order to compare the net item value (VBAP-NETWR) with the total accrued value of the control lines (VBREVK-ACC_VALUE). Read Revenue Lines SD: If you set this flag. the system is forced to always use the revenues from the FI documents when determining the simulated control lines. However. balances and posted revenues of the 'new' control lines are based on the data updated in SD. If both accounts are involved. This is necessary because both the reason for rejection on item level and the billing block on header and item level affect the control line status. This flag is not set by default. the system is forced to always use the revenue lines from the revenue table (VBREVE) when determining the simulated control lines. This is because the individual posting items can be summarized (compressed) in financial accounting. It ensures that the system also reads the sales document data in order to check whether the status of the control lines is correct. Collective Run No:’ o Generally. For this case. the system determines the status on the basis of the detail lines and then compares it with the status of the respective control lines. balances and posted revenues of the 'new' control lines are based on the data updated in FI.doc Page: 72 Of: 91 SAP AG . Check Total Amount : If you set this flag. this flag must be set. If this is not the case. However.Revenue Recognition . This flag is set by default. Thus. : If also the FI documents for the billing documents are read. The data required for simulating the missing reference lines is copied from the billing document. this only occurs if the billing document was posted to 'deferred revenues' or' non-billed receivables' only. With this information. The system assumes that the billing items have generated posting items in chronological order. remember that the billing document and the FI document do not have to match completely. Thus. Check Control Line Status: © SAP AG 07/2005. the reference lines cannot be simulated. Read Revenue Lines FI: If you set this flag. All rights reserved. the FI documents are generated on sales document level (BKPF-AWKEY) during the revenue recognition (VF44). the FI document does not get the sales document number as a reference number. In addition. you must select at least one of these selection options. Only docs with error messages: Sales documents that do not have any errors are indicated with a green checkmark in the log. you must set this flag in order to find these FI documents. if you want to carry out a correction. In this case. the system does execute all checks selected.Revenue Recognition . That is. but the log is output on the basis of the sales document level. If you set this flag. This may cause a slight performance loss. level: © SAP AG 07/2005. the system overwrites the control lines that can be corrected. if the FI documents are generated on collective processing level. but only the incorrect ones with their corresponding error messages. but the collective number. The scope of these corrections is defined by the following selection options.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data well.doc Page: 73 Of: 91 . the system no longer displays these correct sales document numbers in the log. Also for Currency change SD/FI: SAP AG File: RR_Best_Practice_Knowledge_Document_V1. you must deselect the 'Test Run without Update' flag Change control lines: If you set this flag. The system issues error messages only once per document although the errors may occur more often. This means that the control lines (VBREVK) were redetermined via the revenue lines (VBREVE) and the reference lines (VBREVR). All rights reserved. That is. If you set this flag. Message at doc. The report is able to make changes on the database. you can specify a period here. © SAP AG 07/2005. Delete control lines: If you set this flag. This posting period is always the first posting period (descending sort order) of a sales document that no longer contains revenues to be recognized. all revenue lines of this sales document that concern the determined posting period have status 'C' (VBREVE-RRSTA ='C'). the system overwrites the control lines although there are different currencies in the control lines and existing revenue documents.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data o If you set this flag. the system deletes those control lines from the database that have neither revenue lines nor reference lines.doc Page: 74 Of: 91 . Create reference lines: If you set this flag. Create revenue lines: If you set this flag. the system determines a posting period for the new revenue lines to be created. All rights reserved. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. This must be done in the 'YYYYPPP' format where 'Y' represents the year and 'P' the period. the report attempts to regenerate missing reference lines (VBREVR). the second gets status 'C' (recognized). the report generates revenue lines (VBREVE) if it detects balances on both clearing accounts (E16). the report always generates two revenue lines. that is. Both lines have the same revenue value (VBREVEWRBTR) with one value being positive and the other one being negative. if you want to create revenue lines for a certain posting period. The basis for this is either the respective billing document or the FI document generated from the billing document. In this case.Revenue Recognition . The first line gets status (VBREVE-RRSTA) 'A' (to be recognized). However. ‘Posting period:’ Generally. 1.Revenue Recognition .1.4. E12 Differences in Recognised Revenues: RVAMT. E14 No Detail Lines Available.4. E18 Total Amount Difference for Control Lines and Sales Document Item: E24 Total amount difference for control lines and billing item: 6. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. 6.3 Incorrect values / balances E10 Differences in Total Accrual/Deferral Amount: E11 Differences in Balance: WRBTR. E16 Detail Lines have Determined Balance for 'Restricted Revenues' and for 'Non-billed Requests'. All rights reserved. © SAP AG 07/2005.4.doc Page: 75 Of: 91 .1 Account determination errors: E01 Missing Account for 'Restricted Revenues' in Control Lines: SAKRR.1. 6.2 Inconsistencies between VBREVK / VBREVE/ VBREVR E04 No Control Lines Found. although Time-Related Revenue Recognition E17 No Reference Lines Available for Billing Document in Table VBREVR.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data VF47 Error categories 6. E09 Missing Account for 'Non-Billed Requests' in Reference Lines: SAKRRK.4.1. E15 Control Lines with Balance for 'Restricted Revenues' and for 'Non-Billed Requests'. E05 Missing Revenue Account in Revenue Lines: SAKRV E06 Missing Account for 'Restricted Revenues' in Revenue Lines: SAKDR E07 Missing Account for 'Non-Billed Requests' in Revenue Lines: SAKUR E08 Missing Account for 'Restricted Revenues' in Reference Lines: SAKRR. E02 Missing Account for 'Non-Billed Requests' in Control Lines: SAKRRK E03 No Accounts Available in Control Lines.4 status problem E13 Different Status found: RRSTA. Revenues not posted!' The complete explanations find in the note 399777 and 542161.1.6 Lock problem E21 Document in Processing.4. 6. Schedule VF47 on a weekly basis and review errors. 6. see below.4.7 Assignment problem E25 Error during determination of posted values on account: Revenues not posted! © SAP AG 07/2005.1.5 Currency problem E19 Currency Differs in Control Lines and Revenue Lines.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data 6. E23 System Error: Document Could Not Be Blocked. Important precondition for running VF47 is the implementation of all notes for the VF47. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.1. E26 'No FI documents found. E20 Currency Differs in Control Lines and Reference Lines.4.Revenue Recognition . If errors occurs please contact SAP support.doc Page: 76 Of: 91 . All rights reserved. E22 Currency Differs in Accounting Document and Control Lines. doc Page: 77 Of: 91 . 536984 527301 (rrrel=D) Incorrect messages with category "D" in VF47 769103 (rrrel= D) 399777 VF47: Error E17 in case of several documents Report: consistency check of revenue tables (VF47) SAP AG File: RR_Best_Practice_Knowledge_Document_V1.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data 385149 739495 717473 706955 (optional) 660742 656013 (optional) 600334 590143 578840 542161 Report for saving sales documents without changes VF47: Incorrect listing of E17 errors VF47: No error code flag with mixed types VF47: Package processing via control lines Incorrect error message E25 in VF47 Authorization check of update function VF47 Incorrect status determination (header) in VF47 Minor subsequent corrections from Note 542161 (VF47) Activation: reference procedure VBRR in VF47 Error corrections in transaction VF47 Extension of syntax warnings in VF47 © SAP AG 07/2005.Revenue Recognition . All rights reserved. G/L account ( required entry field) Enter the accruals account to be checked. Its primary aim is to trace balances and not to trace possible inconsistencies between SD and FI. You must/can start the selection with the following selection parameters : 1. Company code (required entry field) Enter the company code of the accruals account to be checked. only actions with incomplete revenue recognitions (revenue postings and billing document postings) are taken into account. to trace the balance. the indicator must not be set. 3.5 SD Monitoring with VF48 VF48 Overview This compare report serves to explain the balance of an accruals account used in the Revenue Recognition. Indicator: Only Not Cleared Documents (optional entry field) If you set this indicator. All rights reserved. 2. 4. or to check whether this balance corresponds to the SD data (VBREVx tables). However. it may be necessary for the system to also display completed (cleared) revenue recognition processes.doc Page: 78 Of: 91 . In this case. VF48 selection parameter © SAP AG 07/2005.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data 6. Transaction VF47 (Inconsistency Check in Revenue Tables) is available for this purpose. Posting period from/ to (required entry field) Enter the period to be checked in posting periods. Results of VF48 SAP AG File: RR_Best_Practice_Knowledge_Document_V1.Revenue Recognition . because only these postings are necessary for an explanation of the balance. a split screen appears.doc Page: 79 Of: 91 .Best Practice Knowledge Document 6 Monitoring of the revenue recognition data If the necessary selection parameters were set and the report is started. All rights reserved.Revenue Recognition . SAP AG File: RR_Best_Practice_Knowledge_Document_V1. © SAP AG 07/2005. then these values are not known in SD (VBREVx tables). then the result should reflect the total balance in FI.1 Upper part of the screen . SAP AG File: RR_Best_Practice_Knowledge_Document_V1. b) Balance from billing documents This balance is determined from the posted. If you now take the balance of revenue recognitions. minus the balance of billing documents and minus the balance of other postings.Best Practice Knowledge Document 6 Monitoring of the revenue recognition data 6. All rights reserved. Here per currency different balances are displayed. this result must be analyzed further. Transactions VF47 and VF45 (among others) are available for further analysis. c) Balance from other postings If not only the revenue recognition process (VF44/VF46/VF01/VF02/VFX3) but also other FI transactions such as FB01 posted to the selected accruals account. but there really is no inconsistency at all. The calculation consists of the following: a) Balance from revenue recognitions This balance is determined from the posted revenue lines in the VBREVE table. These are the revenue amounts that were deferred in the selected period according to SD. billing items in the VBREVR table that are relevant for revenue recognition.Revenue Recognition . These are the revenue amounts that were recognized in the selected period according to SD. since there is an inconsistency between FI and SD.doc Page: 80 Of: 91 . For each currency in the form of a calculation. d) Total balance This is the balance of the accruals account for the selected period that was determined in FI. If this is not the case.5.1. This appears to result in an inconsistency between SD and FI.Balances © SAP AG 07/2005. doc Page: 81 Of: 91 .2 6 Monitoring of the revenue recognition data Lower part of the screen .5. (The total in the 'Balance' column must equal the total balance in FI).Revenue Recognition . the revenue billed in the selected period is displayed.Best Practice Knowledge Document 6. If the totals are different. Data is retrieved using the revenue line table (VBREVE). The following values are displayed for the items: a) Billed revenues For the relevant document item. the revenue recognized in the selected period is displayed. based on the VBREVE table (this is the revenue that was posted to the selected accruals account).1. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. Data is retrieved using the control row table (VBREVK) in which the relevant accrued total value is updated. c) Accrued total value This is the revenue amount of the document item to be recognized at accruals account level. All rights reserved.VBREVx rows (SD tables) This is where SD detail data (VBREVx tables) concerning the selection at sales and distribution document item level is listed. there are inconsistencies between FI and SD © SAP AG 07/2005. Data is retrieved using the reference line table (VBREVR). based on the billing items relevant for revenue recognition (this is the revenue that was posted to the selected accruals account). b) Recognized revenues For the relevant document item. 5.doc Page: 82 Of: 91 .' For more information. All rights reserved. the accounting documents which resulted in these balances are displayed here. 6. This is done in Transaction VF45 .'Revenue Recognition: Overview. c) Overview (F7) This is where the revenue recognition data that is relevant for the selected document item is listed. see Note 787174. © SAP AG 07/2005. you can also receive more detailed information a) Billing documents (F5) This is where the billing items that are relevant for the selected document item are displayed. b) Other FI documents (F6) If balances exist from other postings. A jump to the respective billing document is also possible.Revenue Recognition . A jump to the respective accounting document is also possible.3 Additional function In addition to the screen described above.1.Best Practice Knowledge Document d) Balance 6 Monitoring of the revenue recognition data This balance at document item level is calculated by subtracting the recognized revenues from the billed revenues. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. Previously. contracts can be closed or completed. Updating revenue recognition data on sales document In some cases. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. that the sales document also must be changed to reflect the new data. 2. Now. © SAP AG 07/2005. revenue recognition data has to be redetermined. After they are posted. 1. the data had to be updated using report ZZ_SALES_DOC_CHANGE (manually or as a job).doc Page: 83 Of: 91 . when goods are issued or invoices are created. additional notes from note 813850 Because of their size and complexity. All rights reserved. 46C 470 SP49. Using this field. This means. 3. there was no definition in the system to state. Modification of locking logic in VF44/VF46 The processing logic in transactions VF44 and VF46 has been changed to enable running VF44/VF46 in parallel with invoicing. The functions of each extension are described in detail in the composite SAP Note 800983. the up-to-date values are displayed on screen. when invoices are created and the issue of goods is posted. A revenue recognition correction row for contracts can still be created with it. a new DDIC field was set up in tables VBUP/VBUK (MANEK = manual end of contract). additional notes from note 813850 SP23. Flagging documents. The user interface has also been improved. these modifications cannot be performed manually or by using the SAP Note Assistant. To deal with this. Users receive detailed information about which revenues are to be posted. report ZZ_SALES_DOC_CHANGE has been replaced by transaction VF42 and report SDRRAV54. (Manually) completing contracts / correction rows for contracts For contracts. when a process was finished. There are now two available options: Immediate update of sales documents.Revenue Recognition . that are to be updated and updating them at a later time by calling transaction VF42.Best Practice Knowledge Document 7 Functional enhancements 7 Functional enhancements Following is an overview of the technical extensions and new additions contained in the special Support Package . transaction VF48 will not work with the documents. but for which no accruals account was specified in customizing. The control rows are displayed and VBREVE can be displayed. 7. 6. 9. that is relevant to revenue recognition.doc Page: 84 Of: 91 . Only when all conditions have been processed.Best Practice Knowledge Document 7 Functional enhancements 4. VF44 also writes an entry in table VBREVC. The overall status is then set by program SDRRAV54 (see point 1). If you do not use these notes. 5. Archiving is now independent from the order or invoicing. the balance of an accruals account can be analyzed across periods. This is necessary to display cancellation rows in the process and data control functions more clearly. Extension of transaction VF45 The report was set to ALV GRID. With this field. and links to the associated SD and fixed documents are possible. © SAP AG 07/2005. Status determination VF44 sets the status in VBUP. source and cancellation lines can be updated separately. They create the necessary data model.Revenue Recognition . You must use notes 798033 and 780126 to be able to run this report. the system returns the incomplete notification. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. is entered. VPRS is still incorporated into the display. It does not take place until the source objects have been archived. All rights reserved. Report for reconciliation/reproduce-ability of accruals accounts With a new report (transaction VF48). Changing the cancellation update VF46 The field REVFIX was added to table VBREVE. 8. Error handling in account determination Account determination is not interrupted. Archiving for the revenue recognition tables A new archive object (SD_VBREV) is available. if a condition. (valid only for systems before Rel 46C. Note 568227 has to be implemented. The document type for the revenue recognition document is 'RV'. With the revenue recognition functionality costs will be passed to CO-PA during the revenue recognition run.Revenue Recognition .Best Practice Knowledge Document 8 Restrictions from SD side 8 8. A current processing packet consists of a maximum of 999 control lines. If in the CO document the value of each condition has to be listed. The G/L account must be different from the deferred revenue account and from the unbilled receivables account. Third account for the unbilled receivables must be maintained in customizing. transaction OVUR (see note 777996). Relevant account assignment objects are: AUFNR. File: RR_Best_Practice_Knowledge_Document_V1. if the following preconditions are met: o o VPRS condition has to be statistical and KNTYP has to be ‘G’ The item must not have an account assignment object associated with it. This assignment is hard coded and an internal number range is mandatory. the system triggers command ROLLBACK WORK and thus the creation of the accounting documents is prevented for the entire packet and an error log is written. 8. there must be different accounts for each condition. When using report ZZVF44HN (VF44 in the background) and an error occurs during the posting of FI documents. PS_PST_PNR. transaction VKOA (see note 777996). Otherwise no ‘real’ revenue recognition can take place. Sp 49 or Rel 470 Sp 23) © SAP AG 07/2005. if you are using time related revenue recognition (A or D). VBELV / POSNV.3 Cost restrictions In the customizing of CO-PA the costing based profitability analysis has to be active (see transaction KE4I).doc Page: 85 Of: 91 SAP AG . All rights reserved.1 Restrictions from SD side General restrictions The order/contract has to include a billing plan or at least contract data.2 Account restrictions Separate accounts for G/L account and deferred revenue account have to be maintained in customizing. There must be no change of the revenue recognition accounts in case of contracts with call-off orders using revenue recognition relevance ‘B’. 8. doc Page: 86 Of: 91 Time adjustments can be: o o o o Price adjustments can be: o o o SAP AG . which will affect revenue recognition data: o o time adjustments price adjustments changes of the contract data changes of the billing plan data: end date (FPLA-ENDAT) dates from (FPLA-LODAT). neither during the billing nor during the actual revenue recognition the cost is considered. When using performance based revenue recognition the total cost amount for the event is posted in the period the event occurs. To post a VPRS condition by the revenue recognition and not by billing. the revenue per period is calculated: © SAP AG 07/2005. dates to (FPLA-TNDAT). add settlement periods manually delete settlement periods manually change of a condition value in the sales document change of a condition value in the billing document add a condition in the sales document File: RR_Best_Practice_Knowledge_Document_V1. A single statistical VPRS condition without a revenue condition cannot be processed.Best Practice Knowledge Document 8 Restrictions from SD side This means that posting of VPRS condition for items relevant for revenue recognition depend on the non-existence of an account assignment object.If the valuation is done at item level in a batch material the costs are determined from the sales order item. If the VPRS condition is set as accrual-relevant cost condition (XKOMV-KRUEK = ‘X’). VPRS will be ignored during the revenue recognition run and the costs are posted with releasing of the invoice. o o When using a periodic billing plan the value of the VPRS condition is considered in each period.4 Adjustment restrictions There are different changes possible. An accrual of the costs in the revenue recognition does not occur. If the item has an account assignment object. In this case revenues and costs are posted at different times. All rights reserved. the system requires a relevant pricing condition. the cost (VPRS) is posted directly as an accrual in the financial accounting. . 8. that is. Exceptions: .If the goods issue posting is non-valuated the costs are determined from the sales order item. When using partial billing plan the value of the VPRS condition is split.Revenue Recognition . When using time based revenue recognition the cost amount per period is calculated from the total cost amount in the same way. so that a correction settlement period is created within the billing plan and then the VBREV* tables are updated according to the change. In the customizing of the used data category. and the new condition is using separate accounts. the billing plan data has to be updated after the changes. the related conditions have to be classified in a way that they are no longer relevant for revenue recognition. which has to be recognized according to the new net value. o © SAP AG 07/2005. if the condition is only valid for one settlement period. If a condition is added manually in the sales document and also a time adjustment is done. separate revenue lines are created. that the system considers the new situation in whole and checks. The value of those conditions will be posted directly to a revenue account and not to a clearing account. This issue applies when using revenue recognition method ‘A’ or ‘B’. which correction is necessary by comparing the old and the new amount for each period. Preconditions: o The Corr field (FPLA-AUTKORR) has to be set. Then the billing value will be redetermined and the VBREV* tables are updated (except for the settlement periods that are invoiced). All rights reserved. not in the contract/order.Revenue Recognition .Best Practice Knowledge Document o add a condition in the billing document 8 Restrictions from SD side If a billing plan is used. o o If the new condition has its own G/L account. If a condition is added manually in the invoice. Please have look to note 496721.doc Page: 87 Of: 91 . the pricing type must not be set to ‘B’. If the order item is relevant for ‘delivery-related-invoicing’ (FKREL = A). For the new periods the amount. the system must enable a correction posting for the difference amount. which is assigned to the billing plan type. If the net value to be recognized in the item relevant for revenue recognition will be changed and if revenues have already been posted. e. the value of the new condition is populated in revenue lines for the entire validity period and not only for the new settlement period. the existing revenue lines are updated and. otherwise there is no VBREV* update. If for the new condition the same G/L account is determined as for the other conditions. it is necessary to adjust the quantity of the order according the delivery quantity. This is standard functionality due to the fact. This means. adjustment lines are created. will be set. that pricing occurs at item level and not at the level of the settlement periods. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. in case of already recognized revenues. a new settlement period is added. which will be invoiced has to be considered as revenue and posted to the G/L account. If a sales order is relevant for performance based revenue recognition and adjustments are necessary in case of under/over the value.g. The total difference is added to the value of the first open period (where VBREVE-RRSTA = 'A'). No check is done to see. doc Page: 88 Of: 91 . assortment functionality). o o o o SAP AG File: RR_Best_Practice_Knowledge_Document_V1. There must be no over/under delivery of the call-off order items. The creation of a credit memo with reference to a credit memo request doesn’t lead to the clearing of the balance and therefore a credit memo has to be created with reference to the billing document. if there was no invoice created and if the delivery was completed.g.Revenue Recognition . This is done by the system as soon as a reason for rejection is set. which are not done in the corresponding contract items. © SAP AG 07/2005. 8. There must be no changes of the revenue recognition accounts (D/R account / U/R account). After invoicing. If there is a difference between billed and recognized value. there must be no changing of condition values and/or time adjustments in contract and/or call-off-order. the adjustment is only done.Best Practice Knowledge Document 8 Restrictions from SD side If the order item is relevant for ‘order-related-invoicing’ (FKREL = B or I). there must be no changes to the condition values and/or time adjustments in the call-off order items.5 Restrictions for specific processes Contracts with call-off orders using revenue recognition relevance ‘B’: o The call-off order items have to be linked to a contract item (e. it has to be posted by a credit memo. Manually added items in call-off orders without link to a contract item are handled separately. All rights reserved. Before invoicing. If a sales order is relevant for performance based revenue recognition and adjustments are necessary in case of a pricing change in the sales order. it is necessary to adjust the revenues and to complete the order process. 9. For manually posted accruals or other adjustments.doc Page: 89 Of: 91 .2 Translation of foreign currencies The translation of foreign currencies cannot be accomplished in logistics. © SAP AG 07/2005. the account has to be set as ‘open item management’ otherwise the balances can only be updated in foreign currency. The P&L accounts are to be translated using the rates at the dates the transactions were recognized. balance sheet accounts are generally translated using the current closing exchange rate. When the open items on the D/R or the U/R account are cleared at the end of the process (i. All rights reserved. Because this is maybe impractical.Revenue Recognition . that revenue recognition relevant invoice positions always post either to the D/R or the U/R account. Non-revenue recognition relevant invoice positions in the same invoice always post to the revenues account.and deferred-accounts are not revaluated. all invoices are created and all revenues are recognized).Best Practice Knowledge Document 9 Other restrictions 9 9. For D/R and U/R accounts only revenue recognition relevant postings are allowed. currency differences should be posted to a currency differences account (P&L account) affecting net income. To translate on a line item level. To distinguish revenue recognition postings from other postings without revenue recognition-relevance on the revenues account the revenue recognition-values can be determined via header field BKPF-AWTYP (VBRR or former VBAK). According to IAS.e. reconciliation becomes difficult or impossible. These rules apply in case the local currency is the functional currency of the respective subsidiary (which is usually the case). These rules for translation of foreign currency statements are similar to USGAAP rules.1 Other restrictions REVREC and NON-REVREC Postings Please keep in mind. The translation of foreign currencies is possible on line item or on balances. Otherwise. Non-monetary items should be reported using the historical exchange rate (the exchange rate at the date the transaction was recognized). but never to the D/R or the U/R account. separate accounts shall be used. SAP AG File: RR_Best_Practice_Knowledge_Document_V1. According to this unbilled. appropriately weighted average exchange rates can be used. but never to the revenues account. This means that only postings from invoices (with revenue recognitionrelevance) and postings from revenue recognition (VF44 / VF46) are allowed. As transfer of old data into the revenue recognition processes is required.Revenue Recognition . © SAP AG 07/2005. Avoid program modifications. Monitor continuously the results of the revenue recognition processes . Make sure that the functional enhancements are implemented . Don’t deactivate revenue recognition in the productive system landscape. review it by the external auditor of the company . Consider the latest version of the SAP R/3 Revenue Recognition Best Practices Guide. All rights reserved. when your system is not on the latest support package for your release.Never run invoicing in parallel mode with the VF44 of the revenue recognition process.see chapter 7 and 11. Important remarks to consider in the job planning: . Do not run VF44 and VF01 in parallel. Implement the latest support package.see chapter 6. Important precondition for running report ZZ_SALES_DOC_CHANGE is the implementation of note 568227. Set up revenue recognition functionality by SAP certified SD and FI consultants and approve it by the responsible Head of Accounting and.Best Practice Knowledge Document 10 Important to do´s 10 Important to do´s Use go-live assessment offering in the implementation phase.Schedule report ZZ_SALES_DOC_CHANGE / SDRRAV54. especially the latest notes on revenue recognition. consider SAPs consulting offering.doc Page: 90 Of: 91 . before 46C HP 49 or 470 HP 23 . The link can be found in note 779365. SAP AG File: RR_Best_Practice_Knowledge_Document_V1.see chapter 5. on a regular basis to update the revenue recognition data in case of adjustments. if necessary. doc Page: 91 Of: 91 . VF44 List of the FI/CO documents contains too many No currency translation for billing documents Account changes causes data inconsistencies Incorrect correction lines for condition change Incorrect balance in VBREVK for billing item value Incorrect correction items with category B Incorrect FI documents for accrual periods with Incorrect adjustment line for type 'B' with call-off No cumulation in billing documents with posting No writing of control lines without detail lines © SAP AG 07/2005.Revenue Recognition . All rights reserved. 628020 681790 696466 731869 734577 SAP AG File: RR_Best_Practice_Knowledge_Document_V1. VA42.Best Practice Knowledge Document 11 Important notes 11 Important notes 412660 508305 521671 568227 598997 618110 Incorrect status in VBREVK after VA02.
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