What is Revenue Recognition? It's relevance with SAP SD
module along with it's detailed configuration procedure &
steps?
- 7 Answers
- 37344 Views
- iGate, Maersk Line, Wipro, I also Faced
- E-Mail Answers
Answer Posted / rajiv trivedi
The revenue recognition principle is a cornerstone of
accrual accounting together with Matching Principle. They
both determine accounting period in which revenues &
expenses are recognized. According to the principle revenues
are recognized when they are 1) realized or realizable and
2) earned (Usually when goods are transferred or services
are rendered) no matter when cash i s received in Cash
Accounting---In contrast Revenues are recognized when cash
is received no matter when goods or services are sold. his
is somwhat confusing but true as per accointing & financial
principles
IN SD configuration is at S& D-->Basic
Function-->Act.Assignment-->Revenue Recognitio-->Set at Item
category (Special permission from SAP is required to remove
grey area) Set Blank or A or B Then Maintain Account
Detemination in IMG.
Choosing start date of accrual period either as milestone
billing or periodic billing
In fron end (Sap Easy Access ) use VF44 code & set for
Postin Period when revenue is recognized for related co cde,
Sales Org. VF45 to VF48 is used for Rev Recognition.
This is brief summary so may be difficult to understand
well. But I tried my best way.
Thanks for reading.
| Is This Answer Correct ? | 20 Yes | 3 No |
Post New Answer View All Answers
How many cons. Does u have in your project?
Is anyone familiar with allocation run – Tcode is Arun_ITA?
Define the material taxes in ovk4, which will then be maintain in material master.
What are the various qualifier option or what are the various import options? : transportation management
What is the relevance of 'Weight/Volume Relevant' tab in Credit Memo Request and Debit Memo request as in both, it is checked at item level? As I know, it is being used to re- determine route at delivery level.
Did you work on Transportation,what are the major settings for the transportation ?
Mention what are the techniques available in delivery scheduling?
What is sap posting period?
Can we assign multi distribution channel to a single customer in sap sd sales process. If yes then how?
What is a 'sales order'?
In interviews interviewers asked me "what is your responsibility in your project?". what is the answer for this question. Pls tell me the answer anybody. Thanks in advance.
Wht is bill of return? wht is the implications of creating this on another modules like MM FICO etc in integrated way? expalian steps with transaction code to verify this implications in modules like MMand fico Wht is make to orders? wht is the implications of creating this on another modules like MM FICO etc in integrated way? expalian steps with transaction code to verify this implications in modules like MMand fico Wht is consignment? wht is the implications of creating this on another modules like MM FICO etc in integrated way? expalian steps with transaction code to verify this implications in modules like MMand fico
What is an option by which we can run all the sessions in a batch simultaneously?
Have you know the shipment and shipment cost
Can you split deliveries into several invoices? When would you do that?
