Generally revenues are posted when a receivables document is posted. These revenues become effective for revenue purposes in the posting period in which they are actually posted. Many companies require period-based revenue accrual. The revenues must be recognized within the posting period in the future and not in the period in which the billing document was created.

There are different types of Deferred Revenue Postings:

Posting Time-Based Deferred Revenues

Posting Event-Based Deferred Revenues

 

You can post Time-Based Deferred Revenues for services that have already been invoiced but will first affect revenues in the future. These revenues are posted to a separate revenue account, from which they are then posted to the actual revenue account at the time they affect revenue.

Posting Example:

 

 

  To see the Deferred Revenue triggers and postings in FPE3 document display choose in the menu >Extras >Deferred Revenues.

Transactions

FPDRTransfer Deferred Revenues
FPDR_DISPLAYDisplay of Transferred Deferred Revenues

Customizing 

FICAIMG
>Contract Accounts Receivable and Payable
>Business Transactions
>Deferred Revenue Postings

Mass Activities

TFK090A Mass Activity Types 

AKTYP
Activity Interval
Activity Parameter
TCODE
DERE Transfer Deferred Revenues17531741FPDR

 Posting Area

1220 Acct Determination for Deferred Revenue Postings
1221Default Values for Deferred Revenue Postings
1222Acct Determination for Event-Based Deferred Revenue Postings

 FI-CA Events

If you want to post deferred revenues for manual documents using transaction code FPE1, you have to process the following function modules for the FI-CA events specified:

Event
Short Description
Remark
0010Posting: Document Complete (No Number)Function Module FKK_DEFREV_0010
->  updating the triggers for deferred revenues
-> see Function Module Documentation
0030Posting: Document Number AssignedFunction Module FKK_DEFREV_0030
->  updating the triggers for deferred revenues
1119Document: Additional Checks for Posting OnlineFunction Module FKK_DEFREV_1119
-> checks the deferred revenue items before posting in FPE1
1140Deferred Revenues: Calculate Amounts for Revenue RealizationFunction Module FKK_SAMPLE_1140_EXAMPLE
-> defines amounts and transfer postings dates
-> simple Example: Own Implementation necessary!
1141Fill Additional Fields for Deferred Revenue Fill  fill additional customer fields in table FKKDEFREV.
1142Fill Additional Fields for Deferred Revenue New FPDR Indicator  ‘Always use alternative posting date’ (FKKDEFREPARMS-XBUDAT_FIX)  can be activated (see note 2091176)
1145Deferred Revenues: Override Auxillary Account Assignment Additional account assignments for transfers of deferred revenue can be influenced.
1753Mass Activity: Transfer Posting of Deferred RevenuesFunction Module FKK_SAMPLE_1753_VKONT2
->Standard Function Module processed for mass activity FPDR
1754Mass Activity: Transfer Posting of Def. Revenues,
Move Parameters
V800FS-CD Data for Revenue Realization Function Module ISCD_DEFREV_DATES_V800_RISK
-> Deferred Revenue amount distribution for Insurance Direct Debit Run VYSPA

Further information can be found on WIKI page for FI-CA event concept.

Technical information

Tables

Table
Short Description
FKKDEFREVTrigger Table for Deferred Revenue Postings

Package

Package
Short Description
FKKBContract A/R & A/P: Central Objects

 Function Groups

Function Group
Short Description
FKDRDeferred Revenues

Authority

Object
Short Description
 F_KKDEVREVFI-CA Deferred Revenue Postings Transfer Posting Run
F_KKMAFI-CA Mass Activities in Contract Accts Receivable & Payable
F_KKKO_BUKFI-CA Doc.in Contract Accts Rec.& Pay.: CoCode Authorization
 F_KKKO_GSB FI-CA Doc.in Contract Accts Rec. & Pay.: Business Area Auth.
F_KKSUFI-CA Reconciliation Key and Posting Totals

Posting Time-Based Deferred Revenues

You post time-based deferred revenues when: you are required to differentiate between revenue and deferred revenue in the general ledger, and the service from which the revenue arises will not be provided until some time in the future, and the dates for the revenue recognition are already known.

You can display the data records that were included in a transfer run for deferred revenue. You can create totals for these records according to different attributes and thereby account for the totals posted in the general ledger. On the SAP Easy Access screen, choose Start of the navigation path Periodic Processing Next navigation stepClosing Preparation Next navigation stepReceivable/Revenue Adjustment Next navigation stepDisplay Transferred Deferred Revenues End of the navigation path. For more information, see the program documentation.

As an alternative, you can reach the function from the menu of the transfer run for deferred revenue under Start of the navigation path Environment Next navigation stepLine Items End of the navigation path.

You have carried out the following activities in Customizing for Contract Accounts Receivable and Payable under Start of the navigation path Business Transactions Next navigation stepDeferred Revenue Postings End of the navigation path:

  • Maintain Account Determination for Time-Based Deferred Revenue Postings

  • Maintain Default Values for Transfer Posting Run Here it is especially important that you entered the document type for the documents to be generated by the transfer run.

  • Exchange of No Longer Valid Account Assignments In case the account assignments are already closed, you entered a replacement profit center or replacement cost center in the activities Assign New Cost Centerand Assign New Profit Center.

When you post a document involving time-based deferred revenues, the system creates a trigger for the future transfer posting dates, in addition to the document itself. The system also updates a trigger for the total amount. This trigger transfers the total amount from the revenue account to the deferred revenue account when the document is posted. The document itself contains the account assignment of the revenue account.

For the example described in the previous section, in which a business partner signs a maintenance contract amounting to 2,400 and involving service on the 15th of each month, the system would make the following postings:

Posting Data

Date

Posting

Amount

Time

31.12.2008

Debit receivables, credit revenue

2400,-

Posting of Document

31.12.2008

Debit revenue, credit deferred revenue

2400,-

Transfer Posting (Mass Activity)

15.01.2009

Debit deferred revenue, credit revenue

200,-

Transfer Posting (Mass Activity)

15.02.2009

Debit deferred revenue, credit revenue

200,-

Transfer Posting (Mass Activity)

If you reverse a document with deferred revenues, the system automatically reverses the trigger records also. For any postings already made in the general ledger, the system creates new trigger records with reversed accounts (revenue account/balance sheet account).

You can display the triggers for deferred revenues in the document display. To do so, in the menu of the document display, choose Start of the navigation path Extras Next navigation stepDeferred revenues End of the navigation path. There you can display the following attributes for deferred revenue postings:

  • Transfer posting dates

  • Account assignment characteristics

  • Reconciliation keys

  • Indicator specifying whether the trigger record was reversed

  • Indicator specifying whether the trigger record was posted

Activities:

  1. To transfer revenue from the deferred revenues account to the revenue account in the general ledger, you execute the mass activity Transfer Posting Run for Deferred Revenue at periodic intervals. On the SAP Easy Access screen, choose Start of the navigation path Periodic Processing Next navigation stepClosing Preparation Next navigation stepReceivable/Revenue Adjustment Next navigation stepTransfer Deferred Revenues End of the navigation path.

  2. Enter a date and an ID that you can use to identify the run later.

  3. On the General Selections tab page, restrict the selection of the documents to be transferred. To run a simulation transfer first, set the indicator for it.

  4. If you want to reverse the postings made by a transfer posting run, enter the parameters of the run on theReversal Parameters tab page.

  5. Schedule the program run. For more information, see Functions for Scheduling Program Runs.

 

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