What is prospective split in SAP FI-RA - Revenue Accounting?

SAP Term: prospective split

• Component: FI-RA

• Component Name: Revenue Accounting

• Description: In the case of a contract change, IFRS 15 requires that the fulfilled part and the unfulfilled part of the contract are treated as separate contracts, unless it is a change of estimates. The system implements such a prospective split by storing the figures of the fulfilled part in the same contract. In order to keep the data volume low, it does not split the contract into several contracts.

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• Key Concepts: 
  Prospective split is a feature of SAP FI-RA Revenue Accounting that allows users to split revenue into different accounts based on the expected future performance of the revenue. This feature is useful for companies that need to track revenue from multiple sources or that need to track revenue over a period of time. 
  
  How to use it: 
  To use the prospective split feature, users must first set up the accounts they want to use for the split. Once the accounts are set up, users can then enter the expected future performance of the revenue into the system. The system will then automatically split the revenue into the appropriate accounts based on the expected performance. 
  
  Tips & Tricks: 
  When setting up accounts for prospective split, it is important to ensure that all accounts are properly configured and that all expected future performance is accurately entered into the system. This will ensure that the system accurately splits the revenue into the correct accounts. 
  
  Related Information: 
  For more information on prospective split and other features of SAP FI-RA Revenue Accounting, please refer to SAP's official documentation.