Event-Based Revenue Recognition - Subscription Billing - IFRS (5DR)

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

Process flow of Event-Based Revenue Recognition - Subscription Billing - IFRS (5DR)

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


Download Process Flow of Best Practice scenario Event-Based Revenue Recognition - Subscription Billing - IFRS (5DR) - 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:
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