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Event-Based Revenue Recognition – Project-Based Services (1IL)

Event-Based Revenue Recognition – Project-Based Services (1IL)

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 Covered

  • Monitor event-based revenue recognition for projects
  • Manage real-time revenue recognition Issues
  • Run revenue recognition for projects in period-end closing
  • Manage revenue recognition issues for projects
  • Report projects actuals
  • Report projects WIP details (relevant only for time and material projects)
  • Inspect revenue recognition postings

Benefits

  • Change the underlying method of revenue recognition significantly (available in SAP S/4HANA)
  • Adjustment 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


Where is Event-Based Revenue Recognition – Project-Based Services(1IL) being used?

This Scope item is used in the following way:

  • As a support function of Accounting and Financial Close within Finance Scope Item Group
  • As a core function of General within Professional Services Scope Item Group

Process flow of Event-Based Revenue Recognition – Project-Based Services (1IL)

Find below the process flow of the scope item Event-Based Revenue Recognition – Project-Based Services as it is defined for release s4hc-2108.

process-flow


Ref: Professional Services of SAP S4HC-2108


Best Practices related to S/4HANA

*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.


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