
Predictive Accounting for Service Contract Management (4V7)
This scope item provides a more comprehensive overview of all service contracts including future postings for recognized, deferred, and accrued revenues resulting from the billing plan and regardless of their billing status. When a service contract is created, revenue postings reflecting the billing plan of a service contract are created in extension ledger 0E.
The Display Line Items - Margin Analysis app displays prediction journal entries along with actuals and allows users to analyze the expected results at period/quarter end.
Key Process Steps Covered
- Manage service contracts
- Display line items - margin analysis
- Run revenue recognition – service documents
- Display line items - margin analysis
- Monitor predictive accounting - predictive quality
Benefits
- Forecast revenues from service contracts in future periods
- Integrate predictive accounting with service management and revenue recognition
Additional Information
- This scope item is excluded from the default activation
This scope item is excluded from the standard activation as this functionality may create high amounts of data volume and impact the performance, depending on the customer's specific business. This scope item should be activated only if the customer wants to implement service contract reporting in predictive accounting.
Where is Predictive Accounting for Service Contract Management(4V7) 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