Revenue Recognition Methods (cirrc0110m000)

Field Information

Financial Company

The financial company for which the revenue recognition method is created or maintained.

Note: The Company Type must be Both or Financial.

Description

The description or name of the code.

Revenue Recognition Method

The method used to handle the revenue recognition of the document.

Description

The description or name of the code.

Use Revenue Contracts

If this check box is selected, the revenue contracts are used for the revenue recognition.

Note: This field is applicable only if the Revenue Contracts Implemented check box is selected in the Revenue Recognition Parameters (cirrc0100m000) session.

Revenue Recognition Rate Based On

Indicates the exchange rate based on which the revenue recognition is calculated in case of a different currency.

Note: 

• By default, this field is set to Recognition Date.
• The option Not Applicable is not allowed when Use Point in Time Revenue Recognition is selected in the Revenue Recognition Method (cirrc0610m000) session.

Allowed values

Document Line

Indicates that the exchange rate of the revenue recognition method is calculated based on the document line. In this option, the rate date, rate and rate factor are dependent on the rate determiner on the revenue document line. Following possibilities exist

• Rate determiner is Fixed Local, Fixed Hard, Fixed Local and Hard, Fixed or Manually Entered: rate date, rate and rate factor are taken over from the revenue document line and cannot be changed
• Rate determiner is Delivery Date or Receipt Date: this works the same way as Delivery Date as described below
• Rate determiner is Document Date: this works the same way as Invoice Date as described below
• Rate determiner is Expected Cash Date: this works as Expected Cash Date currently works in Invoicing.

Note: For the above scenario, when recognition is already completed, but for instance the invoice date or the expected cash date are not known yet. In that case, recognition date is taken. As soon as the invoice date is known (so also the expected cash date), correction postings must be created if the rates between recognition date and the rates coming from invoicing are different.

Manual

Indicates that the exchange rate of the revenue recognition method is calculated manually. Rate date, rate and rate factor are defaulted from the revenue document line (so from the original sales order, service order), but can be changed manually.

Delivery Date

Indicates that the exchange rate of the revenue recognition method is calculated based on the delivery date. Rate date is the delivery date, rate and rate factor are retrieved on delivery date

Not Applicable

Invoice Date

Indicates that the exchange rate of the revenue recognition method is calculated based on the invoice date.

Rate date is the invoice date, rate and rate factor are retrieved on invoice date. In case of a revenue line with origin Invoice Currency Rates Difference, Advance Currency Rates Difference, the revenue recognition rate based on is always Invoice date. Rate date, rate and rate factor are updated by invoicing in this case and cannot be changed.

Recognition Date

Indicates that the exchange rate of the revenue recognition method is calculated based on the date when the document is recognised. Rate date is the recognition date, rate and rate factor are retrieved on recognition date

Revenue Recognition Level

The level based on which the revenue is recognized in case of bundling. When the revenue contracts are not used, only the levels for Revenue Line and Revenue Document Line can be used.

Note: 

• By default, this field is set to Not Applicable.
• The option Not Applicable is not allowed when Use Point in Time Revenue Recognition is selected in the Revenue Recognition Method (cirrc0610m000) session.
• The options Revenue Contract, Rev. Contract / Original Business Object or Rev. Contract / Document Business Object is only allowed when Use Revenue Contracts is selected in the Revenue Recognition Methods (cirrc0110m000) session.

Allowed values

Revenue Line

Indicates that every Revenue Line (for instance: sales delivery line) can be recognized separately.

Revenue Document Line

Indicates that all Revenue Lines within a Revenue Document Line must be recognized at the same time. For instance, revenue recognition date based on is defined as delivery date + 10 days. For a sales order line, there are two deliveries: one on 05/01 and one on 10/1. Hence, for both deliveries the planned recognition date will be 20/01.

Not Applicable

Revenue Contract

Indicates that all Revenue Lines within all Revenue Document Lines within the same contract must be recognized at the same time. For example, revenue recognition date based on is delivery date + 10 days. A contract exists of a sales order with two lines: one line with two deliveries: one on 05/01 and one on 10/01 and one line with one delivery on 15/01, furthermore a sales return order linked to this sales order with one line and one receipt on 20/01 and furthermore a service installation with a delivery of 15/02. This means, the planned recognition date will be 25/02, for all revenue lines.

Rev. Contract / Document Business Object

Indicates the same as option Revenue Contract, but now by Business Object. In the example above: the sales order with two lines and 3 deliveries in total will get planned recognition date of 25/01, the sales return order 30/01 and the service order 25/02.

Rev. Contract / Original Business Object

Indicates the same as option Revenue Contract / Business Object, but now by Original Business Object instead of Business Object. In the example above, this means the sales order and the sales return order are taken together with planned recognition date 30/01. The service order gets planned recognition date 25/02.

Number Group Revenue Contract

Indicates the number group used for the revenue contracts

Note: 

• This field is mandatory if Revenue Contracts Implemented is selected.
• This field is applicable only if the Use Revenue Contracts is selected in the Revenue Recognition Methods (cirrc0110m000) session.

Series Revenue Contract

Indicates the series used for the revenue contract.