Event-Based Revenue Recognition - Project-Based Services - IFRS (1P0)

S/4HANA Cloud Professional Services Scope Items

Event-based Revenue Recognition calculates and posts real-time revenue and cost adjustment for professional service for fixed price, time and material, and periodic service projects using parallel ledger functionality. Revenue recognition is either cost-based or time-based depending on the project type.

Processes that do not write a prima nota do not result in any real-time revenue recognition postings (for example, changes of plan data do not directly result in revenue recognition postings). If necessary, period-end closing postings (periodic revenue recognition) correct the event-based postings. This scope item covers best guess reporting, as figures are only correct after period-end closing.

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 projects
Manage real-time revenue recognition issues
Run revenue recognition for projects in period-end closing
Manage revenue recognition Issues for projects
Report project actuals
Report project WIP details (relevant only for time & material projects)
Allocate the revenue (relevant for bundled projects only)
Inspect revenue recognition postings

Benefits

Calculate and post real-time revenue and cost adjustments for fixed price, time and material, and periodic service projects
Correct event-based postings with period-end postings. After period-end closing, the posted values are correct and no further separate settlement is required

Where is Event-Based Revenue Recognition - Project-Based Services - IFRS(1P0) 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
As a core function of General within Professional Services Scope Item Group

Process flow of Event-Based Revenue Recognition - Project-Based Services - IFRS (1P0)

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

Download Process Flow of Best Practice scenario Event-Based Revenue Recognition - Project-Based Services - IFRS (1P0) - S/4HANA Cloud

Ref: Professional Services of SAP S4HC-2111

Best Practices related to S/4HANA

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

*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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