Exploring SAP Fiori Apps for Event-Based Revenue Recognition (1IL)

• Revenue Recognition (Event-Based) - Projects (F2129)

• Manage Real-Time Revenue Recognition Issues (F4101)

• Run Revenue Recognition - Projects (F4277)

• Manage Revenue Recognition Issues - Projects (F4100)

• Projects - Actuals (F1035)

• Project WIP Details (F1757)

With this app, costs and revenues associated with project-based transactions are recognized as they occur. Cost postings are matched to revenues and immediately reported as expenses, while revenues are posted to an income statement account. Recognition and adjustment postings are generated simultaneously with the transactions. The app is fully integrated with G/L. Recognition data is stored in the same location as cost and revenue data, eliminating the need for periodic batch jobs. Costs and revenues always match, reported profit and margins are always up to date. Income statements or cost-of-sales reports can be produced at any time.

• Support for sales projects with Fixed Price, Time and Expense, or Periodic Service
• Full transparency into the revenue recognition process
• Enhanced cost management data through additional reporting attributes such as Customer Group
• Ability to analyze recognition values based on accounting principles
• Ability to analyze individual recognition postings in detail
• Ability to drill down from recognition journal entries to cost or revenue journal entry and source document
• Ability to adjust the recognized revenue and cost of sales
• Ability to enter accruals, such as for anticipated losses or unrealized costs

Note

The standard delivery supports revenue recognition based on IFRS requirements.

Only single-level projects are supported.

If you entered temporary adjustments, or if the planned cost for a fixed-price project has changed, you need to do one of the following:

• recalculate the revenue recognition values for the specific items affected, or

• execute a periodic revenue recognition run.

  You execute a periodic revenue recognition run for projects with the Run Revenue Recognition - Projects app.

The figure displays the Manage Real-Time Revenue Recognition Issues app.

During cost or revenue posting on the cost object, errors that stop real time revenue postings can occur. This app allows you to review these posting entries where no corresponding real time revenue recognition posting exists and make the necessary corrections.

No data found indicates that there are no issues. If issues are shown, review and process corrections.

The figure displays the Run Revenue Recognition - Projects app.

You use this app to execute a periodic revenue recognition run for projects. The run recalculates the revenue recognition values for all WBS elements. In event-based revenue recognition, all costs and revenues associated with project-based transactions are recognized in real time, so there's normally no need for periodic revenue recognition runs. However, there can be cases where a periodic revenue recognition run is necessary. For example, you may have manually adjusted the revenue recognition values with the Event-Based Revenue Recognition - Projects app to change the planned cost or adjust deferrals. In such cases you need to either recalculate the revenue recognition values for the specific WBS elements affected, or execute a periodic revenue recognition run.

The figure displays the Manage Revenue Recognition Issues - Projects app.

You use this app to correct errors that occurred when the Run Revenue Recognition - Projects app was executed.

• Analyze and correct errors in revenue recognition runs for projects
• Reprocess the WBS elements to ensure correct revenue recognition values
• Navigate directly to the Manage Real-Time Revenue Recognition Issues app and the Run Revenue Recognition - Projects app.

The figure displays the Projects - Actuals app.

This CDS view provides the prerequisites for answering the following business questions:

• What are the actual amounts per project, WBS element, and G/L account in the transaction currency?
• What are the actual amounts per project, WBS element, and G/L account in the company code currency?
• What are the actual amounts per project, WBS element, and G/L account in the global currency?

For all three currency types, you can drill down for further relevant characteristics.

This view is based on the CDS Cube I_JournalEntryItemCube.

• You need the following authorizations:
  • Ledger: F_FAGL_LDR (GLRLDNR)
  • Company Code: F_BKPF_BUK (BUKRS)
  • Financial Account Type: F_BKPF_KOA (KOART)
  • Business Area: F_BKPF_GSB (GSBER)
  • Segment: F_FAGL_SEG (SEGMENT)
• You must have specified your default controlling area (GET/SET parameter CAC).

• Business Objects

  This view is build on the following business object: CDS Cube I_JournalEntryItemCube

• Main Input Parameters

  • Ledger Fiscal Year
  • Fiscal Period
  • Company Code
  • Functional Area
  • Segment
  • Profit Center
  • Customer
  • Project Definition
  • GL Account Hierarchy
  • GL Account

• Measures and Attributes

  • Measures
    • Actual Amount in Transaction Currency
    • Actual Amount in Company Code Currency
    • Actual Amount in Global Currency
    • Quantity
  • Attributes
    • Project Definition
    • WBS element (statistical)
    • GL Account
    • Other relevant dimension are available as free characteristics.

The figure displays the Project WIP Details app.

You can use this app to monitor costs for project-based services which you have provided to your clients. The app can help you to reduce your levels of unbilled work and optimize service invoicing. It shows both unbilled costs and unbilled revenues, allowing you to analyze employee profitability at an early stage.

Note

The app shows information on Time and Material (T&M) processes only. It does not show fixed price items. To see fixed price items, look at the project actuals.

• View WIP information for selected WBS elements, periods, employees, and cost elements
• See cost details such as billable costs, costs rejected by the client, and WIP costs
• See information on expected revenues

The data shown in the app is updated with the closing run of event-based revenue recognition. The closing run should be executed with accounting principle LG (Local GAAP). You execute the closing run with the Run Revenue Recognition - Projects app.

Note

This app contains in-app help for key fields and concepts. To display the help while working in the app, press F1 or choose the question mark displayed in the app header.

• SAP Activate Roadmap Viewer

• SAP Best Practices Explorer: SAP Best Practices for SAP S/4HANA Cloud

• SAP Help Portal: SAP S/4HANA Cloud

• SAP Fiori Apps Reference Library

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