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Author's profile photo Faisal Aslam



This blog starts by providing a comprehensive understanding of revenue recognition runs that recognize revenue for Sales Order based on the Accrual Method assigned to them.


Consultants/Business Users/Beginners


Understand the concept of Revenue Recognition for Sale Order Based on Accrual Method.

Revenue recognition:

Amounts received from customers could or might not be thought of as accomplished revenue recognized on the standing of delivery/legal transfer of title to the product or service. Revenue is recognized once accomplished or realizable is attained, usually when goods transferred or services rendered

So, we will say that Revenue recognition is that the method of assignment sales revenue to the periods during which it absolutely was accomplished and attained. the price of sales and any revenue deductions for returns related to the revenue got to be allotted to an equivalent accounting period because the revenue itself.

Accrual Method:

Accrual methods: they’re mechanically allotted to sales order items; customers return items and customer contract items supported the assignment rules per business configuration. If you would like the system to use completely different accumulation strategies, you’ll assign them during view.

Sales Order Processing

The sales order method involves making sales orders for product or services consistent with specific terms with concerned conditions. The sales order is typically created by a sales worker, and might be generated out of a sales quote, a sales contract, or a chance. If services square measure required to meet the sales order, service things will be other. A service request will be created directly from the order if needed.

Process Involves:

Navigate to Sales Order Work Center > Sales Order View > Click on Copy tab > Expand Submit tab > Click on Release to Service Execution > Note Down the Services Execution ID

Process Involves in Accrual Method:

Navigate to Cost and Revenue Work Center > Sales Document Items View > Select the Sales Order that Created in Previous Step > Expand Reassign tab > Click on Accrual Method > A tab opens select Accrual Method “Recognize at Point of Delivery” > Click Ok

Process Involves in Revenue Recognition:

Navigate to Cost and Revenue Work Center > Sales Document Items View > Expand the Revenue Recognition tab > Click on Execute Revenue Recognition > A box opens select Operational Posting in the field of Closing Step > Uncheck the test run box > Click Ok

I have tried to explain the process flow of Revenue recognition for sales order based on Accrual Method in simple terms.  I hope it would be helpful for those who want to understand the basic process of ‘Revenue recognition for Sales Order based on Accrual Method’ in SAP Business ByDesign.

Do follow and would love to read some feedback and thoughts from your side in the comment section.


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      Author's profile photo Deepali Shenaoy
      Deepali Shenaoy

      Hey this blog looks similar to one blog that Sukanya Prabhu had written!! Link of the same mentioned below:


      Author's profile photo Faisal Aslam
      Faisal Aslam
      Blog Post Author

      Hi Deepali

      Thank for your comment

      It's entirely different blog than mentioned by you. I have already given reference of the blog of Sukanya Parbhu. Part 2 of this blog will be published soon. You can say that both are written on revenue recognition.


      Author's profile photo Deepali Shenaoy
      Deepali Shenaoy

      I didn't see any reference given to Sukanya Prabhu s blog. So I thought I should highlight this. And also you have copied the last part of her blog to use it in your blog.. You can compare and see !!