Enter Revenue Recognition Basic Data

Explanation

This activity is used to enter basic and default data for the revenue recognition process.

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 check box is selected, 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.

Window

Revenue Recognition Information

Related Window Descriptions

Revenue Recognition Information

Procedure

1. Open the Revenue Recognition Information window. The window is automatically populated when it is opened.
2. Select whether revenue recognition should be performed only for ordinary periods or for both ordinary and year end periods.
3. Select the user group allowed to create revenue recognition vouchers for the ordinary periods by using the List of Values.
4. 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.
5. Select the Post Actual and Recognized Revenue Difference check box, if you want to create additional postings for the difference between actual and recognized revenue when creating revenue recognition voucher.
6. Select the default voucher type for each ledger by using the List of Values.
7. Define revenue recognition rule if you want to apply 0% margin in revenue recognition process based on the level of estimated revenue and level of percentage of completion of the project.
8. Save the changes.  

Complete the following additional steps if revenue recognition in to be executed independently in Internal Ledger and General Ledger.

1. Select the default voucher type for General Ledger by using the List of Values, where all the voucher types connected to the function group P with ledger selection GL Only are displayed.
2. Select the default voucher type for Internal Ledger by using the List of Values, where all the voucher types connected to the function group P with ledger selection IL Only are displayed.
3. Save the changes.

Use the following procedure to define rule for revenue recognition.

1. Select the operator in the Project Revenue Operator field.
2. Enter the level of estimated revenue in the Project Revenue field.
3. Enter the POC limit until which 0% margin should be applied in the the Zero Margin till POC (%) field.
4. Save the changes.