Revenue Recognition For Service Contracts in Sap CRM: Configuration Guide

Revenue Recognition for
Service Contracts in
SAP CRM
Configuration Guide
Version Status Date
1.1 Released March 30, 2011
© Copyright 2011 SAP AG. All rights reserved. 
No part of this publication may be reproduced or transmitted in any form or for any purpose without the
express permission of SAP AG. The information contained herein may be changed without prior notice.
© 2012 SAP AG
Dietmar-Hopp-Allee 16
D-69190 Walldorf
Configuration Guide
Table of Contents
1 Introduction .................................................................................................. 3
2 SAP ERP: Customer Enhancement Project ............................................... 4
3 SAP CRM: Customizing ............................................................................... 6

3.1 Define Transaction Type for Service Contract ............................................................... 6
3.2 Create Item Category for Item Without Target Quantity/Value ...................................... 6
3.3 Create Item Category for Value/Quantity Contract Item ................................................ 8
3.4 Create Item Category for Billing Request Item ............................................................ 10
3.5 Define Item Category Determination............................................................................ 12
3.6 Assign Billing Plan Type to Item Category ................................................................... 13
3.7 Assign Revenue Accounts ........................................................................................... 14
4 SAP ERP: Customizing .............................................................................. 16

4.1 Define Order Type ....................................................................................................... 16
4.2 Set Up Controlling Integration with SAP CRM ............................................................. 17
4.3 Define Controlling Scenario ......................................................................................... 19
4.4 Set Up Mapping for the Document Type for Debit Memo Requests ........................... 20
4.5 Create Results Analysis Key........................................................................................ 22
4.6 Define Valuation Methods for Results Analysis ........................................................... 23
4.7 Define Line IDs............................................................................................................. 25
4.8 Assign Cost Elements for Results Analysis ................................................................. 26
4.9 Define Cost Elements for Results Analysis ................................................................. 27
4.10 Define Update of Results Analysis............................................................................... 28
4.11 Define Posting Rules for Settlement to Financial Accounting ..................................... 29
5 SAP ERP: Master Data for Cost Center Accounting ............................... 30
6 Controlling Transactions ........................................................................... 31

6.1 Results Analysis ........................................................................................................... 31
6.2 Settlement .................................................................................................................... 32
© 2012 SAP AG Configuration Guide: Page 2 of 32

Revenue Recognition for Service Contracts in SAP CRM
Version: 1.1
February 04, 2008
Configuration Guide
1 Introduction
This guide describes the configuration steps that need to be taken to achieve a period-based accrual of
revenue for service contracts with periodic billing plans. This means that revenue is realized in the
posting period in which the service was rendered rather than in the posting period in which a billing
document is created.
Service contracts are created in SAP CRM and revenue recognition takes place in SAP ERP. Purpose
and mode of operation are explained in the application documentation.
There is no technical dependency between revenue recognition and billing. Billing can take place in SAP
CRM or in SAP ERP.
Prerequisites
• Service contracts, service orders, and service confirmations in SAP CRM can be opened,
processed, and closed.
• Integration with the SAP ERP controlling components is set up for service transactions.
• Period-end closing works in financials/controlling.
• Settlement of internal orders is set up in controlling.
• Reports in the info system for internal orders in controlling are used to displays costs, revenues
and accrual accounts (SAP Easy Access menu: Accounting  Controlling  Internal Orders 
Information System).
• Revenue account determination is set up in SAP CRM.
This also has to take place for the transfer of planned revenue to the internal order in controlling.
• If service contracts are billed in SAP ERP, revenue account determination also has to be set up in
SAP ERP.
• Condition types are set up for pricing in SAP CRM.

Version: 1.1
February 04, 2008
Configuration Guide
2 SAP ERP: Customer Enhancement Project

In the SAP Easy Access menu, choose Tools  ABAP Workbench  Utilities  Enhancements 
Project Management (or enter transaction CMOD).
Implement user exits according to SAP Note 1019177 (“Results analysis for CRM service contracts”). The
following ABAP coding has to be created and activated:
• Enhancement KKAG0001 („Period costing in make-to-order production”)  function module
EXIT_SAPLKKAG_002 (“Customer-Specific Determination of Planned Values/Valuation”) 
include ZXKAGU02:

Version: 1.1
February 04, 2008
Configuration Guide
check BEARBEITUNGS_PERIODE ge BEGINN_OFFENE_PERIODE.

data: l_importing_ok type kka_yes_no,
l_tabix like sy-tabix.
IF BEWERTUNGSBASIS eq '0'. "or any other no between 1 and 9
loop at EXPORT_BASIS where kateg eq 'E'.
l_tabix = sy-tabix.
CALL FUNCTION 'KKA_ABGR_HOLE_BASIS'
EXPORTING
PERIODE = BEARBEITUNGS_PERIODE
ZEILEN_ID = EXPORT_BASIS-zlnid
HOLE_IST = ' '
HOLE_PLAN = 'X'
IMPORTING
WRTKUMKG = EXPORT_BASIS-planbewkg
WRTKUMKF = EXPORT_BASIS-planbewkf
ERMITTLUNG_OK = l_importing_ok.
check l_importing_ok = 'X'.
modify export_basis index l_tabix.
endloop.
endif.
• Enhancement KKAG0005 („Results Analysis“) function module EXIT_SAPLKKAG_007

(“Customer-Specific Determination of Time Frame and Results Analysis”)  include ZXKAGU07:
clear nachrichten[].
clear NACHRICHTEN.
NACHRICHTEN-APLID = 'KKA'.
NACHRICHTEN-ARBGB = 'KJ'.
NACHRICHTEN-MSGNR = '309'.
NACHRICHTEN-MINMSGTYP = 'J'.
append nachrichten.

Version: 1.1
February 04, 2008
Configuration Guide
3 SAP CRM: Customizing

3.1 Define Transaction Type for Service Contract
If necessary, define a new transaction type for service contracts with leading transaction category
BUS2000112.
Customizing: Transactions  Basic Settings  Define Transaction Types.
3.2 Create Item Category for Item Without Target Quantity/Value

Customizing: Transactions  Basic Settings  Define Item Categories
Create an item category for an item of a service contract (without target quantity/value). In this example,
the item category is ZDP2.
Settings
Quantity/Value Item = Value and Quantity Contract
Assign BW/CO = Service (2)
In the overview list of item categories, select the item category and navigate to the view Assignment of
Business Transaction Categories. Select the transaction category Sales and make the following settings.

Version: 1.1
February 04, 2008
Configuration Guide
Settings
Bill. Relevance = Not Relevant for Billing
Rev. recog. = Time based revenue recognition (A)

Version: 1.1
February 04, 2008
Configuration Guide
3.3 Create Item Category for Value/Quantity Contract Item

Customizing: Transactions  Basic Settings  Define Item Categories: Create an item category for an
item of a service contract (without target quantity/value). In this example, the item category is ZDP5.
Settings
Quantity/Value Item = Service: Target Value and Quantity (C)
Settings
Bill. Relevance = Not Relevant for Billing
Rev. recog. = Standard revenue recognition or, alternatively, Service based revenue recognition (B)

Version: 1.1
February 04, 2008
Configuration Guide

Version: 1.1
February 04, 2008
Configuration Guide
3.4 Create Item Category for Billing Request Item

Customizing: Transactions  Basic Settings  Define Item Categories: Create an item category for a
billing request item. In this example, the item category is ZDPB.
Settings

Version: 1.1
February 04, 2008
Configuration Guide
Settings
Bill. Relevance = External Billing (A) for billing in SAP ERP SD, or alternatively Billing after Contract
Release (B) for billing in SAP CRM

Version: 1.1
February 04, 2008
Configuration Guide
3.5 Define Item Category Determination

Customizing: Transactions  Basic Settings  Define Item Category Determination.
Example: Define item categories ZDP2 and ZDP5 as main items and define ZDPB as subitem of the two
main item categories.

Version: 1.1
February 04, 2008
Configuration Guide
3.6 Assign Billing Plan Type to Item Category

Customizing: Transactions  Billing Plan  Assign Billing Plan Type to Item Category
Example: Assign billing plan type for Periodic Billing (02) to item categories ZDP2 and ZDP5.

Version: 1.1
February 04, 2008
Configuration Guide
3.7 Assign Revenue Accounts

Customizing (if you do not use enhanced account determination): Billing  Integration  Transfer of
Billing Documents to Accounting  [Transfer to Accounts Receivable (FI-AR) and Accounts Payable (FI-
AP)] or [Transfer to Contract Accounts Receivable and Payable (FI-CA)]  Assign Revenue Accounts for
Service Processes.
Customizing (if you use enhanced account determination): Billing  Integration  Transfer of Billing
Documents to Accounting  [Transfer to Accounts Receivable (FI-AR) and Accounts Payable (FI-AP)] or
[Transfer to Contract Accounts Receivable and Payable (FI-CA)]  Enhanced Account Determination 
Assign Symbolic Account Key.

Version: 1.1
February 04, 2008
Configuration Guide

Version: 1.1
February 04, 2008
Configuration Guide
4 SAP ERP: Customizing

4.1 Define Order Type
Customizing: Controlling  Internal Orders  Order Master Data  Define Order Types Overview
Settings
Order Type = SAPS (mandatory)
Order Category = Internal Order (Controlling) (1)
Revenue postings = selected (allowed)

Version: 1.1
February 04, 2008
Configuration Guide
4.2 Set Up Controlling Integration with SAP CRM

Customizing: Integration with other SAP components  Customer Relationship Management  Settings
for Service Processing  Controlling Integration  Establish Controlling Type, Controlling Level, and
Controlling Scenarios
Example Settings
CRM Transaction Type = ZDP2
Controlling Type = Single-Object Controlling (S)
Controlling Level = Item (2)
Select the entry, navigate to Controlling Scenario, and assign a controlling scenario, for example
SERV000001.

Version: 1.1
February 04, 2008
Configuration Guide

Version: 1.1
February 04, 2008
Configuration Guide
4.3 Define Controlling Scenario

for Service Processing  Controlling Integration  Settings for Single-Object Controlling  Create and
Change Controlling Scenario
Select the relevant controlling scenario and navigate to the view Assignment of Settlement Receiver.
Settings
Costing Variant = PCO2 (Internal order)
Results Analysis Key = Z00001

Version: 1.1
February 04, 2008
Configuration Guide
4.4 Set Up Mapping for the Document Type for Debit Memo Requests
for Service Processing  Billing Integration  Map Transaction Types and Item Categories
Example
Map CRM transaction type ZDP2 to ERP document type for debit memo request ZDP2.
Select the entry, navigate to Item category mapping, and map the billing-relevant item category (for
example ZDPB) to the sales item category for the debit memo request (for example) ZDPB.

Version: 1.1
February 04, 2008
Configuration Guide

Version: 1.1
February 04, 2008
Configuration Guide
4.5 Create Results Analysis Key

Customizing: Controlling  Product Cost Controlling  Cost Object Controlling  Product Cost by Sales
Order  Period-End Closing  Results Analysis  Create Results Analysis Keys
For example, define results analysis key Z00001.

Version: 1.1
February 04, 2008
Configuration Guide
4.6 Define Valuation Methods for Results Analysis

Order  Period-End Closing  Results Analysis  Define Valuation Methods for Results Analysis
In the definition of the relevant controlling area, make the following settings.
Settings
RA Key = Z00001 (for example)
Results Analysis Method = 05 (Quantity-Basis POC Method)
Basis Quantity = statistical key figure C (ABGMNG).
Results Analysis with Status = REL (Released)
Cancel Inventory/Reserves with Status = TECO (Technically completed)
Choose Expert Mode to navigate to the expert mode for either of the statuses, and make the following
settings for the statuses.

Version: 1.1
February 04, 2008
Configuration Guide
Settings for statuses REL and TECO

RA Type = M (Quantity-Based Results Analysis)
Profit Indicator = Q (Percentage-of-Completion)
Valuation Basis = 0 (or whatever was chosen in implementation of enhancement KKAG0001 (see SAP
ERP: Customer Enhancement Project) as “BEWERTUNGSBASIS”)
Base Quantity = statistical key figure C (ABGMNG)
Setting for status REL only
Final RA = blank (no final results analysis)
Setting for status TECO only
Final RA = X (Final Results Analysis)

Version: 1.1
February 04, 2008
Configuration Guide
4.7 Define Line IDs

Order  Period-End Closing  Results Analysis  Define Line IDs
For example, define a line ID COP for primary costs, COS for secondary costs, and REV for revenues.

Version: 1.1
February 04, 2008
Configuration Guide
4.8 Assign Cost Elements for Results Analysis

Order  Period-End Closing  Results Analysis  Define Assignment for Results Analysis
Example Settings
Enter line ID COP as a line ID whose costs must be capitalized (field ReqToCap), and assign primary cost
elements to this. Enter COS as a line ID whose costs must be capitalized, and assign secondary cost
elements to this. Enter line ID REV as a line ID whose costs must be capitalized, and assign revenue cost
elements to this.

Version: 1.1
February 04, 2008
Configuration Guide
4.9 Define Cost Elements for Results Analysis

Order  Period-End Closing  Results Analysis  Define Cost Elements for Results Analysis
Example: Create cost elements 610000 and 610100 with cost element category (CElem category) = 31
(Order/project results analysis).

Version: 1.1
February 04, 2008
Configuration Guide
4.10 Define Update of Results Analysis

Order  Period-End Closing  Results Analysis  Define Update of Results Analysis
Specify for each line ID the results analysis cost element under which the results analysis data are
updated.
Example Settings
Assign line ID (LID) COP for results analysis key (RA Key) Z00001 to category D (Special Costs) and
assign cost element 610400 for cost of sales in the column Creation).
Make the same settings for line ID COS, but assign the cost element 611400.
Assign line ID (LID) REV for results analysis key (RA Key) Z00001 to category E (Revenues) and assign
cost element 610100 for cost of sales in the column Creation).

Version: 1.1
February 04, 2008
Configuration Guide
4.11 Define Posting Rules for Settlement to Financial Accounting

Order  Period-End Closing  Results Analysis  Define Posting Rules for Settlement to Financial
Accounting
Example Settings
Assign general ledger accounts to results analysis key POCI for revenue in excess of billings: Use general
ledger account 891000 as profit and loss account for change of accrued revenue and general ledger
account 791000 as balance sheet account for accrued revenue.
Assign general ledger accounts to results analysis key POCS for revenue surplus: Use general ledger
account 891010 for change of deferred revenue and general ledger account 99056 for deferred revenue.
Note that results analysis keys are language-dependent. For example, POCI in English is equivalent to
POCB in German, and POCS in English is equivalent to POCU in German.

Version: 1.1
February 04, 2008
Configuration Guide
5 SAP ERP: Master Data for Cost Center Accounting

SAP Easy Access menu: Accounting  Controlling  Cost Center Accounting  Master Data 
Statistical Key Figures  Individual Processing  Create
Create statistical key figure ABGMNG with unit of measure = % (percent) and key figure category = total
values.

Version: 1.1
February 04, 2008
Configuration Guide
6 Controlling Transactions
This section describes the controlling transactions for which the settings describe above are relevant.
6.1 Results Analysis

SAP Easy Access menu: Accounting  Controlling  Product Cost Controlling  Cost Object Controlling
 CRM Service Processes  Period-End Closing  Single Functions  Results Analysis  Individual
Processing (or alternatively: Collective Processing).
Example: Enter number of internal order for service contract item, period and fiscal year and execute.

Version: 1.1
February 04, 2008
Configuration Guide
6.2 Settlement
SAP Easy Access menu: Accounting  Controlling  Product Cost Controlling  Cost Object Controlling
 CRM Service Processes  Period-End Closing  Single Functions  Settlement  Individual
Processing (or alternatively: Collective Processing).
Example: Enter number of internal order for service contract item, period and fiscal year and execute.

Version: 1.1
February 04, 2008

Revenue Recognition For Service Contracts in Sap CRM: Configuration Guide

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Version Status Date

1.1 Released March 30, 2011

© Copyright 2011 SAP AG. All rights reserved. 

2 SAP ERP: Customer Enhancement Project ............................................... 4

3 SAP CRM: Customizing ............................................................................... 6

4 SAP ERP: Customizing .............................................................................. 16

5 SAP ERP: Master Data for Cost Center Accounting ............................... 30

6 Controlling Transactions ........................................................................... 31

© 2012 SAP AG Configuration Guide: Page 2 of 32

© 2012 SAP AG Configuration Guide: Page 3 of 32

2 SAP ERP: Customer Enhancement Project

© 2012 SAP AG Configuration Guide: Page 4 of 32

check BEARBEITUNGS_PERIODE ge BEGINN_OFFENE_PERIODE.

• Enhancement KKAG0005 („Results Analysis“) function module EXIT_SAPLKKAG_007

© 2012 SAP AG Configuration Guide: Page 5 of 32

3 SAP CRM: Customizing

3.2 Create Item Category for Item Without Target Quantity/Value

© 2012 SAP AG Configuration Guide: Page 6 of 32

© 2012 SAP AG Configuration Guide: Page 7 of 32

3.3 Create Item Category for Value/Quantity Contract Item

© 2012 SAP AG Configuration Guide: Page 8 of 32

© 2012 SAP AG Configuration Guide: Page 9 of 32

3.4 Create Item Category for Billing Request Item

© 2012 SAP AG Configuration Guide: Page 10 of 32

© 2012 SAP AG Configuration Guide: Page 11 of 32

3.5 Define Item Category Determination

© 2012 SAP AG Configuration Guide: Page 12 of 32

3.6 Assign Billing Plan Type to Item Category

© 2012 SAP AG Configuration Guide: Page 13 of 32

3.7 Assign Revenue Accounts

© 2012 SAP AG Configuration Guide: Page 14 of 32

© 2012 SAP AG Configuration Guide: Page 15 of 32

4 SAP ERP: Customizing

© 2012 SAP AG Configuration Guide: Page 16 of 32

4.2 Set Up Controlling Integration with SAP CRM

© 2012 SAP AG Configuration Guide: Page 17 of 32

© 2012 SAP AG Configuration Guide: Page 18 of 32

4.3 Define Controlling Scenario

© 2012 SAP AG Configuration Guide: Page 19 of 32

© 2012 SAP AG Configuration Guide: Page 20 of 32

© 2012 SAP AG Configuration Guide: Page 21 of 32

4.5 Create Results Analysis Key

© 2012 SAP AG Configuration Guide: Page 22 of 32

4.6 Define Valuation Methods for Results Analysis

© 2012 SAP AG Configuration Guide: Page 23 of 32

Settings for statuses REL and TECO

© 2012 SAP AG Configuration Guide: Page 24 of 32

4.7 Define Line IDs

© 2012 SAP AG Configuration Guide: Page 25 of 32

4.8 Assign Cost Elements for Results Analysis

© 2012 SAP AG Configuration Guide: Page 26 of 32

4.9 Define Cost Elements for Results Analysis

© 2012 SAP AG Configuration Guide: Page 27 of 32

4.10 Define Update of Results Analysis

© 2012 SAP AG Configuration Guide: Page 28 of 32

4.11 Define Posting Rules for Settlement to Financial Accounting

© 2012 SAP AG Configuration Guide: Page 29 of 32

5 SAP ERP: Master Data for Cost Center Accounting

© 2012 SAP AG Configuration Guide: Page 30 of 32

6.1 Results Analysis

© 2012 SAP AG Configuration Guide: Page 31 of 32

© 2012 SAP AG Configuration Guide: Page 32 of 32