Event-Based Revenue Recognition - Sell from Stock - US GAAP (33J)

Event-based Revenue Recognition calculates and posts real-time revenue and cost adjustment for sales orders, using US GAAP 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 with 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 revenue postings. After period-end closing, the posted values are fully correct and separate settlement is no longer required.

Event-based Revenue Recognition also supports bundling, revenue calculation, and posting in the context of ASC 606. 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

Choose from different revenue recognition methods (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

All starter, demo, and trial systems are by default setup with group ledger IFRS. This scope item is therefore excluded. Customers can decide to use this scope items in the Q- and P-system based on the selected scope bundle.

Where is Event-Based Revenue Recognition - Sell from Stock - US GAAP(33J) 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 - US GAAP (33J)

Find below the process flow of the scope item Event-Based Revenue Recognition - Sell from Stock - US GAAP as it is defined for release s4hc-2111.

Download Process Flow of Best Practice scenario Event-Based Revenue Recognition - Sell from Stock - US GAAP (33J) - S/4HANA Cloud

Ref: Finance of SAP S4HC-2111

Best Practices related to S/4HANA

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*1) Yearly Updates are released per September of each year
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Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered:

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