IMG Path - Financial Accounting > Revenue Accounting > Revenue Accounting Contracts > Define Performance Obligation Types
IMG Path - Financial Accounting > Revenue Accounting > Revenue Accounting Contracts > Define Fulfilment Event Types
Items | Qty | SO Rate | SSP | Contractual Price | Total SSP | Allocated Amount | Allocation Effect |
TG10 | 1 | 20,000 | 15,000 | 20,000 | 15,000 | 20,220.59 | 220.59 |
TG12 | 3 | 500 | 340 | 1,500 | 1,020 | 1,375.00 | (125.00) |
SM0001 | 1 | 500 | 300 | 500 | 300 | 404.41 | (95.59) |
Total | 22,000 | 16,320 | 22,000 | 0 |
We start with Value Contract creation with materials & services associated with agreement.
With reference to value contract further Sales Order is created and condition type PPR0, Standalone Sales Price (SSP) will be manually updated at every item level for testing but without SSP system will not save the Sales Order.
Through Tcode FARR_RAI_MON or Fiori App Manage Revenue Accounting Items, all sales order items will be showcase initially as processable RAI’s. Such processable RAI’s are further transferred collectively or individually transfer to RAR. Once RAI’s are processed successfully, in 1st step system will automatically create one Revenue Recognition Contract 1000000200 against one Sales Order and in 2nd step Performance Obligations 2000002000/01/02 for each Sales Order items.
As per IFRS 15 prerequisite, RAR component will automatically perform the allocation amount and allocation effect against each Performance Obligation. This determines transaction price and allocate to the separate POB’s level.
With reference to Sales Order, Outbound Delivery and PGI done for material relevant order items.
In transaction FARR_RAI_MON or Fiori App Manage Revenue Accounting Items, all fulfillment items related to order will be showcase initially as processable RAI’s. Then all such processable RAI’s are transferred using default sender integration component as SD with RAI class as SD02 with source document item type as SDFI to RAR.
Acceptance Date updated in Line item of Sale order manually.
In transaction FARR_RAI_MON or Fiori App Manage Revenue Accounting Items, all fulfillment items related to order will be showcase initially as processable RAI’s. Then all such processable RAI’s are transferred using default sender integration component as SD with RAI class as SD02 with source document item type as SDFI to RAR.
This is the final step to determine for each POB when revenue should be recognized. Revenue is recognized when POB is fulfilled – that is when goods are posted, or acceptance date is updated, or services are eligible for post. The system records costs and recognizes revenue based on allocated amounts. The goods issue posting, or acceptance date update triggers real time creation of the revenue entry recording contract asset based on the allocated revenue.
Customer billing is posted.
In transaction FARR_RAI_MON, All Invoice Items related to billing will be showcase initially as processable RAI’s. Then all such processable RAI’s are transferred using default sender integration component as SD with RAI class as SD03 with source document item type as SDII to RAR.
In transaction FARR_RAI_MON, RAR Contract details will be displayed with all information related to Order Items, Fulfillment Items and Invoice Items.
In October we can see 25% completion of the Service Item
In December we can see 75% completion of the Service ItemService item will be 100% completed by the end of contract period which is 4 months in this case.
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