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
- Open the Revenue Recognition Information window. The window is automatically populated when it is opened.
- Select whether revenue recognition should be
performed only for ordinary periods or for both ordinary and year end
periods.
- Select the user group allowed
to create revenue recognition vouchers for the ordinary periods by using the List of Values.
-
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.
-
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.
-
Select
the default voucher type for each ledger by using the List of Values.
-
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.
- Save the changes.
Complete the following additional steps if revenue
recognition in to be executed independently in Internal Ledger and General
Ledger.
- 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.
- 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.
- Save the changes.
Use the following procedure to define rule for revenue recognition.
- Select the operator in the Project Revenue Operator field.
- Enter the level of estimated revenue in the Project Revenue
field.
- Enter the POC limit until which 0% margin should be applied in the the
Zero Margin till POC (%) field.
- Save the changes.