SAP Knowledge Base Article - Preview

3701026 - Incorrect revenue recognition pattern in RAR contract

Symptom

  • Revenue is being fully recognized in the current period instead of being deferred and distributed over the contract duration.
  • The expected behavior is that revenue should be recognized over time across the periods as per duration of the contract.
  • Allocated amount is lower than it was originally and previous periods have already recognized amount. 


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Environment

Revenue Accounting and Reporting

Period Closing

Product

SAP S/4HANA all versions

Keywords

SAP RAR, revenue recognition, deferred revenue, contract duration, performance obligation, contract modification, POB, wrong revenue, allocated amount, prospective, pro, retrospective change, revenue posting run, incorrect revenue allocation, SAP S/4HANA, revenue accounting, financial reporting distortion , KBA , FI-RA-PC , Revenue Accouting Period Closing , Problem

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