Purpose of Deffered Revenue posting

[Expert]

We are currently implementing S4 HANA Cloud for one of our customer having a Service Business process with PS module as the driving factor.

Could you please let us know what is the purpose of the differed revenue posting during invoicing and how to deactivate it in SAP S4 HANA Cloud.

Currently there is an additional accounting document getting generated along with the revenue posting.

[Expert · Accepted solution]

Revenue recognition is an essential aspect of project accounting to accomplish GAAP principles and IFRS15 / ASC606 regulations. See this blog about

https://blogs.sap.com/2017/12/19/revenue-recognition-in-context-of-ifrs-15-with-sap-s4hana-cloud-mad....

https://blogs.sap.com/2022/10/13/revenue-recognition-key-documentation-the-key-to-understanding-the-...

If you need to deactivate for certain flows, you can use SSCUI 102517 Derivation of Recognition Key for Projects

See also this link.

https://answers.sap.com/questions/13926642/how-to-enable-and-use-event-based-revenue-recognit.html

2820579 - Deactivate Event-base Revenue Recognition postings - SAP for Me