Contract-Based Revenue Recognition - IFRS (3KK)

Contract-Based Revenue Recognition - IFRS (3KK)

The scope item enables you to manage revenue recognition according to IFRS 15 following the five-step model.

Revenue contracts are created automatically for the corresponding provider contracts created in Contract Accounting and Invoicing.

You can identify the performance obligations included in each revenue contract based on the items in the provider contract.

You can determine the total price and then allocating the total price among the performance obligations based on the standalone selling price.

The revenue for performance obligations is recognized as they are fulfilled over time.

You calculate contract liability and contract asset values and make postings to the general ledger to reflect revenue-related recognition transactions.

Key Process Steps Covered

  • Manage revenue contracts
  • Process revenue contracts
  • Perform periodic activities including transfer revenue, calculate contract liabilities and contract assets, and post revenue to general ledger
  • Shift revenue contracts to next period

Benefits

  • Eliminate the need for manual processes through process automation and integration
  • Support compliance to revenue accounting standard IFRS 15
  • Provide reconcilable contract management for revenue recognition

Additional Information

  • This scope item is excluded from the default activation

This scope item supports revenue recognition according to IFRS 15 for contract accounting and invoicing. To use this scope item, you must have a license for the contract accounting and invoicing solution, which is separately priced.


Where is Contract-Based Revenue Recognition - IFRS(3KK) 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

Process flow of Contract-Based Revenue Recognition - IFRS (3KK)

Find below the process flow of the scope item Contract-Based Revenue Recognition - IFRS as it is defined for release s4hc-2111.


Download Process Flow of Best Practice scenario Contract-Based Revenue Recognition - IFRS (3KK) - S/4HANA Cloud
Ref: Finance of SAP S4HC-2111
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.
Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered:
Place comment