SAP TM - revenue recognition

[FerdinanLin]

Hi SAP Gurus,

We are in the midst of project to implement SAP TM module for LSP business scenario.

I have request from the business for revenue recognition after invoice is generated. Invoice is generated usually before or when the shipment starts. Normally, there should not be an issue if the shipment or service ended within the same accounting period.

the complication comes when the shipment started and ended in different period. (i.e. shipment starts on 23.05.2023 and ended on 08.06.2023)

the business requirement is the revenue will be recognized pro- rate in this period from 23.05.2023 to 31.05.2023 (8 days) and from 01.06.2023 to 08.06.2023 (8 days)

from the above example 50% of revenue needs to be recognized on the period of may and the remaining will be recognized on the period of June.

How does the standard SAP for the Logistics Shipping Liner industry handle the above scenario for revenue recognition ?

Could be this be achieved by activating revenue accounting and reporting (RAR) ? is there any standard integration SAP TM - SD (ERP) and RAR ?

Thank you,

Regards,

Ferdinan

[aravind_gottiparthy]

Hi Ferdinan,

We have similar requirement. Could you please let me know how did you handle it.

Thanks

Aravind