According to the article “Realize Special Requirements for Revenue Recognition,” “SAP provides certain predefined methods for calculating revenue and cost. However, you may have some specific business needs to meet for determining the revenue recognition based on the principles defined in International Financial Reporting Standards (IFRS). For example, an organization is doing the work for a client for a month, but the billing is done in the next month, so the matching of revenue and cost for the same period is important.”

In some business scenarios, such as enhancing the completed contract method or enhancing the cost-based percentage of completion (POC) method, you need to handle special needs for determining revenue not met by standard SAP functionality. To help you prepare for these types of scenarios and to gain an understanding of how to determine the revenue recognition based on the principles defined in IFRS, I prepared a quiz for you to take. The answers are listed at the end of this article.

D.    Revenue recognition method

10.   Which of the following can be settled to different general ledger (G/L) accounts using line ID functionality in SAP Revenue Recognition?
A.    Actual cost/COS
B.    Planned/Actual revenue
C.    Deferred/accrued revenue
D.    RANI 

Answers