Assessment

SAP ERP SD Revenue Recognition

-Questionnaire
for test approval

SAP Component ERP

Release 606

Support Package 0024

(SAP_APPL)

Customer BBC

Date 28.06.2021

Responsible
person
Questionnaire for test approval
__________________________________________________________________________________________

1 General Information
SAP recommends that the ERP SD Revenue Recognition functionality has to be implemented according to the
requirements stated in SAP note 782758. Below is an excerpt of this note. Please ensure that you check the
current version of this note continuously.

Excerpt from SAP Note 782758: “In order to comply with the latest accounting principles and current financial
regulations, like 'Generally Accepted Accounting Principles' (US-GAAP), 'International Accounting Standards' (IAS)
/ 'Financial Reporting Standards' (FRS), as well as the 'Sarbanes-Oxley Act', SAP provides some general
recommendations and Best Practices for customers using SAP ERP revenue recognition in the Sales and
Distribution component (SD) based on pure core business processes in the ERP system.

 As revenue recognition provides a data stream into the financial system, the setup of the function is
not only an SD task. FI consultants with experience in the area of Balance Sheet and P&L customizing with
respect to deferred income have to setup the account assignment using SAP best practices and need to
review the processes that are customized in the SD area. The required settings for all accounts are
described in SAP Note 777996.

 Furthermore, the entire revenue recognition process should be approved by the responsible Head of
Accounting and, if necessary, reviewed by the external auditor of the company.

 Revenue recognition needs to be implemented by SAP-certified SD and FI consultants.

 To ensure compliance with the financial requirements as stated above, always implement the latest
version of all SD notes related to revenue recognition for your current release.

 SAP always recommends the application of the latest support package.

 Because of the nature of revenue recognition function, it is necessary to monitor monthly, at a

minimum, the results by using the transaction VF45 and VF48, which delivers a process view of SD and FI
and also by using transaction VF47, which provides a more technical view. .

 Program modifications in a revenue recognition relevant process are discouraged because they may
have unexpected effects and may result in an incorrect data stream for FI. Any modifications made must be
very closely monitored to prevent any negative impact to the revenue recognition process. Additionally,
modifications have to be reviewed whether they are still in line with legal finance guidelines and regulations.

 The ERP SD Revenue Recognition functionality has been designed to feed and interact with a
classic SAP ERP accounting module. External or third-party accounting back ends are not covered and
supported by the functionality.

 The integration of ERP SD Revenue Recognition with other solutions of SAPs business suites (e.g.
SAP CRM) as well as the integration with SAPs industry solutions (e.g. IS-OIL, IS-ADEC-BOQ) is not
validated and released (except: IS-MEDIA).

 The ERP SD revenue recognition functionality is no longer supported within SAP S/4HANA. The
accounting standards like IFRS 15 / ASC 606 (Revenue from Contracts with Customers) are also not
supported. The newly available "SAP Revenue Accounting and Reporting" functionality should be used
instead (see link).

 The full functional scope of the solution and its limitations is described in the BEST PRACTICES.
The latest version of this document is provided free-of-charge by downloading it from the link given in SAP
note 1172799.

ERP SD Revenue Recognition Assessment Page 2 of 10

Questionnaire for test approval
__________________________________________________________________________________________

2 Company Information

Project schedule
In which phase of the implementation project are you?
Please give us the schedule (milestones) of your implementation project:

Milestones Start date End date

Blueprint phase

Realization phase

Go-live

Customer Contacts and Roles

Please indicate the following information. The contact person for revenue recognition is particularly important.

Role Name Email-address Phone number Cel phone

Customer Contact
for Revenue
Recognition

Implementation
Partner

Ceritified
Accountant

Data migration
Have you planned to migrate old sales documents (contracts, sales orders) that were created before the ERP SD
Revenue Recognition is set up?

Data migration Planned

Migration of old sales documents based on R/3

Migration of old sales documents based on a legacy system

Transition of existing R/3 documents (long term contracts) into the revenue recognition
process

Please note that every migration of revenue recognition data from a former system to SAP ERP is individual. SAP
has no standard process or standard tool for the migration (for example, transfer legacy data from another legacy

ERP SD Revenue Recognition Assessment Page 3 of 10

Questionnaire for test approval
__________________________________________________________________________________________

system, activate revenue recognition for existing SD contracts …. ).

An experienced consultant should be contacted to streamline the data migration (see SAP-note 985753).

Industry-specific solutions
Have you implemented SAPs industry-specific solutions?

Industry solution - ID

Please note that when you have implemented industry-specific solution(s) mentioned above, you have to check
whether you are planning to integrate revenue recognition with your industry solution(s).

Important to know:
The integration of ERP SD Revenue Recognition with SAPs industry solutions (e.g. IS-OIL, IS-ADEC-BOQ) is
not validated and released (except: IS-MEDIA).
In case you plan to combine SAP ERP SD Revenue Recognition with another industry solution please address
this need via the SAP User Groups or the responsible SAP Solution Manager.
In case you don’t know who to contact you can create a service ticket on component SD-BIL-RR.
SAP Support will then forward your request to the responsible person.

Business suites
Have you implemented SAPs business suites?

Business suite - ID

Please note that when you have implemented business suite(s) mentioned above, you have to check whether you
are planning to integrate revenue recognition with your business suite(s).

Important to know:
The integration of ERP SD Revenue Recognition with SAPs business suites (e.g. SAP CRM) is not validated and
released.
In case you plan to combine SAP ERP SD Revenue Recognition with another business suite please address this
need via the SAP User Groups or the responsible SAP Solution Manager.
In case you don’t know who to contact you can create a service ticket on component SD-BIL-RR.
SAP Support will then forward your request to the responsible person.

ERP SD Revenue Recognition Assessment Page 4 of 10

Questionnaire for test approval
__________________________________________________________________________________________

3 Planned Use of ERP SD Revenue Recognition

Business processes
Please specify which of the following ERP core business processes you are planning to use:

Best Practices Business Process Planned to use

according to Best
Practices
Process 2, 3 Time based revenue recognition (Type A)
Process 4, 5 Service based revenue recognition (Type B) with Service material
Process 4, 5 Service based revenue recognition (Type B) with Delivery
Process 6, 7 Service based revenue recognition (Type B) in a Call-off process
Process 8 Time based and billing related revenue recognition (Type D)
Process 9, 10, 11 Credit/debit memo processing with a credit/debit request
(Type A, B, D) Type(s):
__D_____
Process 12 Credit/debit memo request with reference
(Type A, B with type F) Type(s): _______

Process 13 Credit/debit memo processing without a credit/debit request

(Type A, B, D) Type(s): _______

Process 14, 15 Return processing with reference to an Order

(Type B, D) Type(s): _______

Process 16 Return processing with reference to a call-off process (Type B)

Service based and billing related Revenue Recognition
(Type E) / IS-MEDIA
OTHERS (which business process with which revenue
recognition type?)*

* If you have marked OTHERS in the business process list OR

if the business process differs from the descibed process of the Best Practices please give more information:

__________________________________________________________________________________________

__________________________________________________________________________________________

Business functions
Please specify if you are planning to use the ERP SD Revenue Recognition functionality in combination with the
following ERP functions:

Function Planned to use

Have you planned to use a fixed exchange rate for the entire accrual period (FASB 52)?

Have you planned to use revenue recognition summarization?

ERP SD Revenue Recognition Assessment Page 5 of 10

Questionnaire for test approval
__________________________________________________________________________________________

Function Planned to use

Have you planned service based revenue recognition (Type B) with POD?

Also please specify if you are planning ERP SD Revenue Recognition functionality in combination with the
following items.
Important to know: For these items there are limitations to consider (please have a look to SAP-note 678260 with
the functional constraints).

Function
Scheduling Agreement function
Resource-Related Billing (DP90) function
Cross Company Processing
Down Payment Processing
Revenue recognition for taxes
Revenue recognition for transfer prices
Financial contract accounts functionality (FI-CA)
Fund Accounting functionality (PSM-FA)
Funds Management functionality (PSM-FM)
Budget Administration System functionality (PSM-FM-BCS)
Revenue recognition with NEW G/L
OTHERS (which business function?)*

* If you have marked OTHERS in the business function list please provide further information:

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

Additional information
Please have a look to these questions:

Question YES
Are you using an External Accounting Module (non SAP)?
Are you using Compression in FI?
Are you doing Manuell Postings in FI on the revenue recognition accounts?
Are you changing Account Settings in FI?
Are you changing Document Currency in SD contracts/orders?

ERP SD Revenue Recognition Assessment Page 6 of 10

Questionnaire for test approval
__________________________________________________________________________________________

4 Information about the Productive Use

of ERP SD Revenue Recognition
* ONLY relevant if ERP SD Revenue Recognition
is already in use and
EXTENDED USAGE is planned

Revenue recognition data volume

To verify the amount of revenue recognition data, please check the entries for the following tables:

Table Number of rows

VBREVK 14,104

VBREVE 31,499
24,129
VBREVR

Monitoring with transaction VF47

Are you using transaction VF47 for regular monitoring of the revenue recognition data?
Please specify the frequency of using VF47:

Frequency of using transaction VF47 Usage

Not at all
Rarely
Monthly
Biweekly
Weekly
OTHER (which periodicity?)

If possible, please provide the following information of the current / latest vf47 run:

Execution Date: ______________________

Used variant: ______________________

Spool number: ______________________ (Please do not to delete this spool file!)

ERP SD Revenue Recognition Assessment Page 7 of 10

Questionnaire for test approval
__________________________________________________________________________________________

Business processes with revenue recognition

Please specify which of the following ERP core business processes you are already using:

Best Practices Business Process Used according to Best

Practices
Process 2, 3 Time based revenue recognition (Type A)
Process 4, 5 Service based revenue recognition (Type B) with Service material
Process 4, 5 Service based revenue recognition (Type B) with Delivery
Process 6, 7 Service based revenue recognition (Type B) in a Call-off process
Process 8 Time based and billing related revenue recognition (Type D)
Process 9, 10, 11 Credit/debit memo processing with a credit/debit request
(Type A, B, D) Type(s): _______

Process 12 Credit/debit memo request with reference

(Type A, B with type F) Type(s): _______

Process 13 Credit/debit memo processing without a credit/debit request

(Type A, B, D) Type(s): _______

Process 14, 15 Return processing with reference to an Order

(Type B, D) Type(s): _______

Process 16 Return processing with reference to a call-off process (Type B)

Service based and billing related Revenue Recognition
(Type E) / IS-MEDIA

OTHERS (which business process with which revenue

recognition type?)*

If you have marked OTHERS in the business process list OR if the business process differs from the descibed
process of the Best Practices please give more information:

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________

ERP SD Revenue Recognition Assessment Page 8 of 10

Questionnaire for test approval
__________________________________________________________________________________________

5 Next steps

You have answered the questions in this questionnaire.

This questionnaire is the first step of the assessment process SAP offers as a free-of-charge service to
ensure that mandatory conditions and customizing settings are met.
It is necessary to perform the full assessment process in order to get future support by SAP in terms of the ERP
SD Revenue Recognition functionality.

Please have a look to the next steps of the assessment process:

1. Send this questionnaire back to SAP with the requested data.

You can attach it to the message you opened with the information that you intent to implement or enhance
the SAP ERP SD Revenue Recognition function.
- Please consider that the recommended releases and support packages for using the ERP SD Revenue
Recognition function have to be fulfilled. -

2. SAP reviews the provided data of the questionnaire.

If the preconditions are met SAP gives you the APPROVAL to use ERP SD Revenue Recognition in your
TEST system. You get an instruction how to open the customizing for the ERP SD Revenue Recognition
functionality. Then you can start with the customizing and the test activities.
- Please consider the information provided in the BEST PRACTICES. Additionally eLearning courses
for the ERP SD Revenue Recognition function are available (SCM653 and SCM654) to get familiar with the
functionality. -

3. After you have finished your test activities, please send the test cases (representative document numbers)
back to SAP. Therefore we have a further questionnaire prepared.
- Please consider that the tests should include all planned business processes with revenue recognition, also
non-straight forward processes like cancellations (vf11, vf46), changes in sales documents, changes in
customizing … . -

Please send these information to SAP at least FOUR WEEKS before you planned to GO-LIVE with the
SAP ERP SD Revenue Recognition functionality.

4. SAP reviews the provided test cases.

If there is no error SAP gives you the APPROVAL to use SAP ERP SD Revenue Recognition in your
PRODUCTIVE system. The approval from SAP is provided related to the reviewed revenue recognition type
and business processes.
- Please consider that if you intend to use other revenue recognition type or if you intend to include further
business processes an extended assessment has to be performed accordingly. -

5. When you are live with the SAP ERP SD Revenue Recognition functionality different tasks are mandatory:
a.) Implement the latest version of all SD notes related to ERP SD Revenue Recognition for your
current release.
- Please consider that SAP provides regularly a composite note with a list of corrections that have to be
implemented in the productive system unless they have already been imported by Support Package.
In addition, please view the monthly TOP NOTES that are sent out on component SD-BIL. -
b.) Monitor the revenue recognition data continuously (at a minimum monthly) by using the transaction VF45
and VF47. If errors occur please open a message and send it to SAP support on component SD-BIL-RR.

ERP SD Revenue Recognition Assessment Page 9 of 10

Questionnaire for test approval
__________________________________________________________________________________________

6 Prefix

Industry Solutions
Procedure how to find out if one of the Industry Solutions “IS Media”, “IS High Tech” or “IS Oil” is active:

- Execute transaction SE16 for table AVERS.

- Display all entries.
If you find “IS-M” or a similar entry in the field ADDONID, you are using IS Media.
If you find “IS-HT” or a similar in the field ADDONID, you are using IS High Tech.
If you find “IS-OIL” or a similar in the field ADDONID, you are using IS Oil.

ERP SD Revenue Recognition Assessment Page 10 of 10