Enter Revenue Recognition Basic Data
Explanation
This activity is used to enter basic and default data for the revenue recognition process.
If Ordinary/Year Closing is selected for revenue recognition period type, select the user group allowed to
create revenue recognition vouchers for year end periods by using the List of Values.
Enable the Post Actual and Recognized Revenue Difference option, if you want to create additional
postings for the difference between actual and recognized revenue when creating revenue recognition voucher.
Define rules for revenue recognition, if you want to specify zero percent margin rule based on POC for each
ledger.
Prerequisites
- A user group defined for ordinary periods is required for revenue recognition. If revenue recognition is to
be performed for year-end periods, a user group for the year-end is required.
- At least one voucher type connected to the function group P is required. If revenue recognition is to be
executed independently on Internal Ledger and General Ledger, three voucher types of function group P are
required :
- Voucher type of function group P with ledger selection GL, Affect IL
- Voucher type of function group P with ledger selection GL Only
- Voucher type of function group P with ledger selection IL Only
System Effects
- The values entered in this window will be used as default values when creating vouchers related to revenue
recognition.
- If the Post Actual and Recognized Revenue Difference option is enabled, following additional postings
will be created in the revenue recognition voucher.
- If the recognized revenue - actual revenue become a positive amount, GP22 and GP24 postings
will be created (Note: GP22 posting should be connected to an account of type Asset).
- If the recognized revenue - actual revenue become a negative amount, GP23 and GP25 postings
will be created (Note: GP23 posting should be connected to an account of type
Liability).
- If revenue recognition rule exists, 0% margin will be applied for qualified projects when executing revenue
recognition.