on 05-31-2019 7:01 AM
Hi Team,
I want to run Revenue Recognition on a Professional service project work package with Fixed price contract using time based method. Now when i run event based revenue recognition i can see only 4 keys
SPFC (Fix price cost based POC)
SPFCQ (Fix price cost based POC by QTY)
SPFCR (fix price revenue based POC)
SPNFC (Fix price POC no REV REC)
Is there any key available for calculating revenue based on time based
Regards,
Nitesh Panchal
Hi Nitesh,
For Time and Expenses, you have 2 recognition keys available: SPTM (Time and Material DIP based) and SPNTM (Time and Material DIP based: No rev rec).
Are you using Fiori App Revenue Recognition (Event-Based) - Projects? If yes, you're most likely only seeing these 4 recognition keys available because you have selected a Fixed Price billing element.
Kind regards,
Ana
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Hi Nitesh,
Thank you for clarifying!
As far as I'm aware of, currently we do not have any recognition key which satisfies that requirement.
In short:
- SPFC (Fix price cost based POC): Revenue is recognized on cost based percentage of completion. The plan costs originate from an automated estimation of completion calculation. COGS are recognized as they occur.
- SPFCQ (Fix price cost based POC by QTY): Revenue is recognized on quantity based percentage of completion. The quantities which are used here need to be of the quality time duration like hours. COGS are recognized as they occur.
- SPFCR (fix price revenue based POC): COGS are recognized based on a revenue based percentage of completion. Revenues are recognized as they occur.
- SPNFC (Fix price POC no REV REC): Revenues and COGS are recognized as they occur. The period end closing will clear existing revenue recognition postings, except effects from bundling.
Kind regards,
Ana
Thanks Ana, The question what i was referring to was that i wanted to calculate the POC based on the time of the project for eg. if my project duration is 2 months then after one month when i run rev rec system should post recognized revenue as 50% because my POC is 50% which is half of the project duration
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