3717813 - Clarification on Universal Revenue Recognition activation in SAP S/4HANA Cloud Public Edition

• Inquiry regarding the licensing requirements for activating Universal Revenue Recognition (URR) for sales orders, customer projects, and service contracts.
• Clarification on how the URR is activated and the activation impact on existing revenue recognition, including already created solution orders, projects, or revenue contracts.

   

SAP S/4HANA Cloud Public Edition

1. Review Scope Item 3VS – Contract-Based Revenue Recognition (US GAAP).
2. Attempt to activate Universal Revenue Recognition (URR) for sales orders, customer projects, and service contracts.
3. Verify licensing requirements and dependencies for URR activation.

Universal Revenue Recognition (URR) is included as part of SAP S/4HANA Finance and does not require additional licenses for the scope items Event-Based Revenue Recognition (EBRR) and Contract-Based Revenue Recognition (CBRR).

As for requirement to activate the 'Use Revenue Contracts', ensure that the bundle scenario is configured as "Per Solution Order" for company code to activate "Use Revenue Contract" functionality. If the bundle scenario is set to "Per Standalone Objects," expert configuration is required to enable URR.

For details, kindly refer to the blog for detailed guidance on URR activation: Universal Revenue Recognition Blog.

As for impact on existing solution order, it is as follows: If updating the existing follow-up documents of the solution order, such as updating an existing service contract of the existing solution order, there will be no impact, there will be no revenue contract created. If adding a new item of the existing solution order, then a revenue contract/POB will be created from the new item, as it will be a new follow-up document 

• Contract-Based Revenue Recognition
• Universal Revenue Recognition Blog

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