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Event-Based Revenue Recognition – Project-Based Services – IFRS (1P0)

Event-Based Revenue Recognition – Project-Based Services – IFRS (1P0)

Event-based Revenue Recognition calculates and posts real-time revenue and cost adjustment for professional service for fixed price, time and material, and periodic service projects using parallel ledger functionality. Revenue recognition is either cost-based or time-based depending on the project type.

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.

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.

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 project actuals
  • Report project WIP details (relevant only for time & material projects)
  • Allocate the revenue (relevant for bundled projects only)
  • Inspect revenue recognition postings

Benefits

  • Calculate and post real-time revenue and cost adjustments for fixed price, time and material, and periodic service projects
  • Correct event-based postings with period-end postings. After period-end closing, the posted values are correct and no further separate settlement is required


Where is Event-Based Revenue Recognition – Project-Based Services – IFRS(1P0) 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 – IFRS (1P0)

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

process-flow


Ref: Professional Services of SAP S4HC-2108


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