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SAP Note 777996 - Account settings for revenuerecognition process

Note Language: English Version: 9 Validity: Valid Since 09/14/2009

Summary

SymptomIncorrect settings in FI, in particular in account setting, cause incorrectresults in the process of revenue recognition.

Other termsAccounts, SAKN1, SAKN2, OVUR, VKOA, FS03

Reason and PrerequisitesWith the process of the revenue recognition, revenues are posted separatelyin Financial Accounting (FI) using the revenue recognition run, and notwith the transfer of an SD invoice.Additional accounts are needed for this function and they must be createdin FI. If the settings for these accounts are incorrect, this leads toincorrect balance sheet postings.

SolutionThe following accounts are required to map the revenue recognition process:

o Revenue account (recognized revenues)

o Receivables account (customer account)

o Deferred revenue account (or D/R account)

o Unbilled receivables account (or U/R account)

For the revenue account and receivables account, you can use the accountsthat you used before. The account for the revenues to be deferred (referredto as D/R account below) and the account for the unbilled receivables(referred to as U/R account below) have to be created as new accounts.

Below, we compare the settings of the D/R account and the U/R account withthe revenue account.

1. Account settings in transaction FS03:

o Account for deferred recognized revenues (D/R account):

- Balance sheet account ('Type/Description' tab page)

- Post automatically only ('Create/bank/interest' tab page)

- Set the same tax category as the revenue account

- Select 'Posting without tax allowed' ('Control Data' tab page)

- Do NOT select 'Only balances in local crcy' ('Control Data' tab

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SAP Note 777996 - Account settings for revenuerecognition process

page)

- Select 'Open Item Management' 'Control Data' tab page)

- 'Line item display' ('Control data' tab page)

o Account for unbilled receivables (U/R account):

- Balance sheet account ('Type/Description' tab page)

- Post automatically only ('Create/bank/interest' tab page)

- Set the same tax category as the revenue account

- Select 'Posting without tax allowed' ('Control Data' tab page)

- Do NOT select 'Only balances in local crcy' ('Control Data' tabpage)

- Select 'Open Item Management' 'Control Data' tab page)

- 'Line item display' ('Control Data' tab page)

o Revenue account for realized revenues:

- P&L statement acct

- Select 'Posting without tax allowed' ('Control Data' tab page)

- Do NOT select 'Only balances in local crcy' ('Control Data' tabpage)

2. Account determination in transaction VKOA:

In the SD module, both the revenue account and the account for deferredrevenue amounts must be maintained in revenue account determination. You dothis in Customizing transaction VKOA, as shown in the following example:

App CndTy. ChAc SOrg. ActKy G/L account Provision acc_________________________________________________________________V KOFI INT 0001 ERL Revenue acc D/R accV KOFI INT 0001 ERS Revenue acc D/R accV KOFK INT 0001 ERL Revenue acc D/R accV KOFK INT 0001 ERS Revenue acc D/R accand so on.......

3. Setting in transaction OVUR (maintenance of U/R account):

In Customizing transaction OVUR, you maintain the account for unbilledreceivables (U/R account), depending on the reconciliation account and the

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SAP Note 777996 - Account settings for revenuerecognition process

associated chart of accounts. The reconciliation account is taken from thecustomer master record of the payer.

Example:

App Ch Ac Recon.acct ANonBldRec_______________________________________________________________V INT Reconciliation acct no U/R account no

Comments:

o The U/R account must be different from the D/R account, that is,different account numbers must be used.This ensures that the posting process of the revenue recognitioncan be monitored.

o An account number that is used for the accruals accounts (U/R andD/R account) must never be used as the revenue account.

Header Data

Release Status: Released for CustomerReleased on: 09/14/2009 08:09:53Master Language: GermanPriority: Recommendations/additional infoCategory: ConsultingPrimary Component: SD-BIL-RR Revenue Recognition

Secondary Components:XX-PROJ-IMS-RR IMS Projects Revenue Recognition

Valid Releases

Software Component Release FromRelease

ToRelease

andSubsequent

SAP_APPL 46C 46C 46C

SAP_APPL 470 470 470

SAP_APPL 500 500 500

SAP_APPL 600 600 600

SAP_APPL 602 602 602

SAP_APPL 603 603 603

SAP_APPL 604 604 604 X

Related Notes

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SAP Note 777996 - Account settings for revenuerecognition process

Number Short Text

784827 Missing accounts in VBREVK for new condition

644296 SD reconciliation account determintn for revenue recognition

568227 Account changes cause data inconsistencies