Event-Based Revenue Recognition - Sell from Stock - IFRS (33M)

Event-based Revenue Recognition calculates and posts real-time revenue and cost adjustment for sales orders, using parallel ledger functionality. When a goods issue is posted for sale from stock, revenue is calculated based on quantity, accrued revenue is posted, and costs are matched to revenues.

Processes that do not write a source document do not result in real-time revenue recognition postings. For example, changes of plan data do not directly result in revenue recognition postings. Period-end closing postings (periodic revenue recognition) correct the event-based postings. After period-end closing, the posted values are fully correct and separate settlement is no longer required.

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 sales order
• Manage real-time revenue recognition issues
• Run revenue recognition for sales orders in period-end closing
• Manage revenue recognition issues for sales orders
• Report sales order actuals
• Allocate the revenue (relevant for bundled sales orders only)

Benefits

• Change the underlying method of revenue recognition significantly (available in SAP S/4HANA)
• Adjust for imminent loss, anticipated sales deductions, and unrealized costs
• Run a simulation to view important sales order KPIs via semantic tags
• Get correct posted values after period-end closing with no separate settlement required

Additional Information

• This scope item is excluded from the default activation

The scope item is marked as non-standard scope because the sell from stock scenario has a large amount of data and is not required by all businesses. Customers should make choices based on business needs and a comprehensive understanding of the solution provided in the scope item.

Where is Event-Based Revenue Recognition - Sell from Stock - IFRS(33M) 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 Event-Based Revenue Recognition - Sell from Stock - IFRS (33M)

• Best Practices of SAP S/4HANA On Premise *1
• Best Practices of SAP S/4HANA Cloud *2
• Best Practices of SAP Analytics Cloud *2
• Best Practices of Robotics Process Automation(RPA) with SAP Leonardo *2

• RISE with SAP
• SAP S/4HANA Cloud
• SAP on Azure
• Business Process Management