What is 'compound performance obligation' in SAP FI-RA - Revenue Accounting?

compound performance obligation - Overview

• Component: FI-RA

• Component Name: Revenue Accounting

• Description: Group of performance obligations that comprises several single performance obligations that are not distinct.

compound performance obligation - Details

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  Key Concepts: 
  Compound performance obligation is a term used in SAP FI-RA Revenue Accounting. It refers to a contract between two parties that requires the delivery of multiple goods or services, and the revenue from the contract must be allocated to each of the goods or services based on their relative stand-alone selling prices. 
  
  How to use it: 
  In SAP FI-RA Revenue Accounting, compound performance obligations are used to determine the revenue recognition for a contract. The revenue recognition is based on the relative stand-alone selling prices of each of the goods or services in the contract. This allows for accurate revenue recognition and reporting. 
  
  Tips & Tricks: 
  When dealing with compound performance obligations, it is important to ensure that all of the goods or services in the contract are accurately priced and accounted for. This will ensure that the revenue recognition is accurate and that all of the goods or services are properly accounted for. 
  
  Related Information: 
  For more information on compound performance obligations, please refer to SAP's documentation on FI-RA Revenue Accounting. Additionally, there are many online resources available that provide more detailed information on this topic.