Deferred Revenue Recognition Configuration

Task list for SF5 & production environments

Created Sponored Billings Deferred Revenue G/L Liability Account

Created liability Account 201106 with reference using 201104 (see dual entry accounting explanation)

IMG - Delete milestone item category & create deferred periodic item category

IMG -> Sales and Distribution -> Sales -> Sales Documents -> Sales Document Item -> Define Item Categories

Deleted ZCN1, Milestone item category. Copied ZCN2 to ZCN3.

DO NOT DELETE ZCN1 - It means they would never be able to view old billing plans!

When I saved this came up. I'd like to get rid of the ZLIC (Technology Licensing Office)

Assign Item Category

Added ZCN3 in the MltCa, specifies an item category that you can enter as an alternative to the default.

Also noticed that ZCON NORM was there with KMN as the item category. Since OSP will now be choosing item categories, I decided to delete this option:

Revenue Recognition

Set Revenue Recognition for Item Categories

Rev. recognition method A is Time-related revenue recognition

Change Rev. recognition method to D (Time-related with reference to Billing)!

Acc. period start (Start of Accrual Period) option B is billing plan start date for Periodic Billing

Maintain Account Determination (for revenue recognition)

Assign G/L accounts for revenues and deferred revenues

Use the most general Access Sequence, Acct Key, only.

Documentation says that the Deffered Revenue account should be entered in the second column. They go on to state that it is a "special general ledger account". 201106 is a standard liability G/L account so I'm not sure this will work.

~~Change user exit, ZXVVFU02, to treat new item category correctly and calculate the FI line item text properly~~ - is not called

Don't forget to enter posting period when you run VF44!

~~ZXVVFU08 must be activated to~~ ~~work around SAP bug~~ ~~with revenue recognition based on billing.~~ ZXVVFU08 is not called by VF44!

But Business Events are called by VF44.

Created a new function group, ZSD0, Sales & Distribution Events.

Copied SAMPLE_INTERFACE_00503111 to ZSDREVREC_INTERFACE_00503111 and placed it in function group, ZSD0. Added following line of code:

fbf_blart = 'RR'. " revenue recognition document type

(Later, I had trouble documenting this function module. See solution.)

IMG->Sales and Distribution->System Modifications-> Business Transaction Events

Puts me into the SAP Business Framework: Business Transaction Events menu:

Settings -> Products -> ...of a customer

SAPLZSD0 is the main program for the function module I created above.

Environment -> Info system (P/S) - A is the attribute - execute. A list appears with the available events Copy the key (00503111):

Back arrow to the SAP Business Framework: Business Transaction Events menu.

Settings -> P/S modules -> Customer's

Event is key from above 00503111

Product is main program that I "activated" in above step

Function module is the function module I created above.

Country & Application should be left blank.

Create New Document Type (RL - Deferred Revenue Recognition - r is for revenue & l is for liability) - later changed to RR (revenue recognition)

Define Document Number Range (must be done manually in each environment!)

Modify ZXVVFU02 (user exit that populates bseg-sgtxt)

Change code on line 136 to read:

ELSEIF CVBRP-PSTYV <> 'ZCN1'. " periodic billing not milestone

instead of = 'zcn2' so that both zcn2 & zcn3 are picked up.

Modify ZSDADSHD (print bills)

More or less the same change made in ZXVVFU02

Copied EK01 to EK02:

Defined new account key (ERR = Recognized Revenue)

Copied ERL to ERR

Added EK02 to pricing procedure ZPROJ (project related prices)

Changed Account Key to ERR for EK02:

Assigned new Revenue G/L to ERR:

Copied ERL 800600 line to ERR:

When creating 800602, remember it must be created in both G/L and Primary Cost Elements!

Also had to change cost element group CEMIT-0 to get it to show up in the Monthly Statement