What is contract modification in SAP FI-RA - Revenue Accounting?

SAP Term: contract modification

• Component: FI-RA

• Component Name: Revenue Accounting

• Description: According to IFRS 15 Revenue from Contracts with Customers, “a contract modification is a change in the scope or price or both of a contract that is approved by the parties to the contract”. When the system performs contract modification, the modification only applies to partially fulfilled performance obligations.

Smart SAP Assistant

• Key Concepts: 
  Contract modification is a feature of SAP FI-RA Revenue Accounting that allows users to make changes to existing contracts. This includes changing the terms of the contract, such as the duration, payment terms, and other details. It also allows users to add new items or services to the contract.
  
  How to use it: 
  To modify a contract in SAP FI-RA Revenue Accounting, users must first access the contract in the system. Once they have accessed the contract, they can make changes to the terms and conditions of the contract. They can also add new items or services to the contract. Once all changes have been made, users must save the changes in order for them to take effect.
  
  Tips & Tricks: 
  When making changes to a contract in SAP FI-RA Revenue Accounting, it is important to double-check all changes before saving them. This will ensure that all changes are accurate and that no mistakes are made. Additionally, it is important to keep track of all changes made to a contract in order to ensure that all parties involved are aware of any modifications.
  
  Related Information: 
  For more information on how to modify contracts in SAP FI-RA Revenue Accounting, please refer to the official SAP documentation. Additionally, there are many online resources available that provide step-by-step instructions on how to modify contracts in SAP FI-RA Revenue Accounting.