Scope items 1P0 and 33O detail how IFRS and US-GAAP respectively are handled in the system.
Event-based Revenue Recognition also supports revenue calculation and posting based on stand-alone selling prices and allows bundling in the context of IFRS 15. For more information, see SAP Note 2524569
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 projects, using US GAAP Ledger functionality. Revenue recognition is either cost-based or time-based depending on the project type.
Event Based Revenue Recognition supports parallel accounting, the use of multiple ledgers to separate different valuation approaches. By this principle, you can setup different accounting principles or different revenue recognition methods in the different ledgers that will lead to different values.
Relevant EBRR configuration to determine different accounting principles is included in
Event Based Revenue Recognition Configuration
|Maintain Settings for Event-Based Revenue Recognition
|Derivation of Recognition Key for Projects
|Define Replacement Rules for Recognition Keys
Configuration for financial reporting needs to be complete for the accounting standards needed. Configuration for Event Based Revenue Recognition is then referenced to these standards as well (see next lesson for details on configuration).
To fully setup different accounting principles, you may need the support of a finance consultant expert.