Event-Based Revenue Recognition (1IL) Process Flow Overview
The figure demonstrates an overview of the process flow of the Event-Based Revenue Recognition (1IL) scope item.
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Event-based Revenue Recognition calculates and posts real-time revenue and cost adjustment for professional services for fixed price, time and material, and periodic service type projects. Processes that do not write a prima nota do not result in any real-time revenue recognition postings (for example, changes of plan data do not directly result in revenue recognition postings). If necessary, period-end closing postings (periodic revenue recognition) correct the event-based postings. This scope item covers best guess reporting, as figures are only correct after period-end closing.
Key Process Steps
Execute event-based revenue recognition for projects.
Adjust revenue recognition.
Report project actual data.
Report project WIP details (relevant only for time and material projects).
Change the underlying method of revenue recognition significantly (available in SAP S/4HANA).
Adjust for imminent loss, anticipated sales deductions, and unrealized costs.
Run a simulation to view important project KPIs via semantic tags.
Ensure correctness of posted values after period-end closing, with no separate settlement required.