In SAP, Revenue Recognition is the process of recording the income and expenses related to a sale or service in the accounting period in which they occur.
This document provides an overview of revenue recognition concepts and implementation in SAP. It covers revenue recognition principles, methods and their financial statement implications, key differences between US GAAP and IFRS, and business benefits. Steps are provided to activate revenue recognition in SAP including system requirements. Configuration of GL accounts, account determination, and item categories is explained. Examples demonstrate transactional and month-end revenue recognition postings.
- Introduction to revenue and revenue recognition concepts
- Revenue recognition principles and methods with financial statement impacts
- Comparison of revenue recognition between US GAAP and IFRS
- Business benefits of accurate revenue recognition
- Steps to activate revenue recognition in SAP
- Configuration of GL accounts, account determination, item categories
- Transactional and month-end revenue recognition posting examples
- Enhancement options using BTEs