
Event-Based Revenue Recognition - Subscription Billing - IFRS (5DR)
Subscriptions created in SAP Subscription Billing are stored as provider contract items in SAP S/4HANA Cloud. Event-Based Revenue Recognition lets you manage revenue recognition for provider contracts using group ledger IFRS functionality. For a provider contract item, revenue is recognized over time, based on the billing plan associated with the provider contract item. Revenue posted because of the invoicing document in Sales Billing is deferred. Manual adjustments to revenue are possible. If necessary, period-end closing corrects real-time revenue recognition postings.
Key Process Steps Covered
- Monitor revenue recognition for provider contracts
- Manage real-time revenue recognition issues
- Run revenue recognition for provider contracts in period-end closing
- Manage revenue recognition issues for provider contracts
- Review product and service margins
Benefits
- Support time-based revenue recognition for provider contracts based on the referenced billing plan
- Ensure correctness of posted values after period-end closing with no separate settlement required
- Automate recognition activities and reduce manual effort during the period and at period-end closing
- Run a simulation to view expected amounts to be posted for a period
- Avoid the need for additional reconciliation
Additional Information
- This scope item is excluded from the default activation
The scope item is non-standard because not all businesses require revenue adjustments for subscription billing. 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 - Subscription Billing - IFRS(5DR) 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