Introducing Event-Based Revenue Recognition (1IL)

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Introduce Event-Based Revenue Recognition (1IL)

Introduction: Event-Based Revenue Recognition - Project-Based Services (1IL)

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.

To access scope item process flows, perform the following steps:
  1. Access SAP Best Practices for SAP S/4HANA Cloud‎.

  2. Select a country from the Version dropdown list.

  3. Select the Accelerators tab.

  4. Select the SAP Best Practices content library.

  5. Use the checkboxes to filter information and locate scope item test scripts and process flows.

    Ignore the BPMN2 version of process flows.


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.

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