Understanding FI-GL Integration

The customer invoice for the first month shows 40 currency units, which is the sum of 20 currency units for the service in the first month and the 20 currency units for the mobile phone. The revenue is posted in credit and with the receivable account in debit.

As Revenue Accounting and Reporting calculates revenues differently, it posts the same amount on revenue adjustment in debit and receivable adjustment in credit.

When the fulfillment is complete, the revenue is posted on the revenue adjustment account in credit and the receivable adjustment in debit. It is split between the original revenue and the revenue coming from allocation. In this way, you can assign a separate account to the revenue, which is caused by allocations.

This program is used to calculate and transfer revenue of time-based performance obligations in a batch basis. It also transfers events such as fulfillment but is not used for real posting. Users can select a single company code or multiple company codes, and an accounting principle, which are all mandatory fields. The current fiscal year and period display as default. The program also checks if the revenue accounting period is open or in-closing in the background.

This program is used to calculate and transfer contract liability/asset of revenue contracts in a batch basis. It can calculate deferred revenue or unbilled receivable, or no revenue dependent on the settings on your accounting principle. The value date is used as a calculation base such as a value date of December 23, 2020. It does not include an invoice due at December 31, 2020 for the contract liability. If a contract liability/contract asset of any revenue contract has been calculated by the program in the last run, then a new fulfillment or invoice is created for that contract for the same period, then the program re-calculates the contract liability/ contract asset of this contract.

This program does real posting, transferring data from the revenue accounting sub-ledger (table FARR_D_Posting) to the general ledger. The account assignments determine which CO documents are created. CO-PA is updated if there is a profitability segment. The cost object is updated in case of a make-to-order or project account assignment. If users decide to close the selected revenue accounting period after posting this time, the system checks related prerequisites before closing the revenue accounting period. The following list outlines the background process of the posting run: 

• Users trigger the actual posting in a batch process.
• Posting dates should be entered.
• Users can decide when to post, immediately, or later.
• If a customer uses New G/L, all postings are done specifically by the ledger group. The accounting principle determines the ledger group.
• The posting amount is aggregated according to account assignments.

The Revenue Posting ran can be executed in simulation mode. You can select different views by account. You can also test or simulate the posting before performing the actual posting run. The following points apply in simulation mode:

• Users can select multiple company codes, and group of contracts.
• Users can check the result, especially account determination, account assignments, debit/credit sign, and amount, for POBs, and related condition types, and the results include transaction currency and local currency.
• The posting category is used to distinguish different kinds of posting types, such as revenue, cost, contract liability/assets, and unbilled receivable/deferred revenue postings.
• Contract liability/assets amounts only need to be distributed to revenue contracts. The following points apply in test mode:
  • Users can run posting run in test mode to detect posting errors.
  • Users can display errors in the job monitor.
  • In job monitor, the system informs users of error contract number and error reason.