What is 'unbilled revenue reporting' in SAP IS-U-BI - Contract Billing?
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Component: IS-U-BI
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Component Name: Contract Billing
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Description: Consumption proration used for determining and valuating quantities sold and billed for the balance sheet of the closing balance period.
unbilled revenue reporting - Details
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Term: Unbilled Revenue Reporting
Component: IS-U-BI Contract Billing
Definition: Unbilled revenue reporting refers to the process of identifying and tracking revenue that has been earned by a company but has not yet been invoiced to the customer. In SAP IS-U (Industry Solution for Utilities), this involves recognizing revenue for services or consumption delivered during a billing period that will be billed in a future invoice cycle.
How It’s Used: In real SAP IS-U projects, unbilled revenue reporting is crucial for accurate financial statements and revenue recognition. For example, utilities often provide services continuously (like electricity or water supply) but bill customers periodically (monthly or quarterly). During the period-end closing, the system calculates the revenue earned based on consumption data that has not yet been invoiced. This ensures that revenue is recognized in the correct accounting period, even if the invoice is generated later. The reporting helps finance teams reconcile revenue and manage cash flow expectations.
Important Configuration:
- Define unbilled revenue accounts in the Contract Billing customizing under Financial Accounting integration.
- Configure the revenue recognition rules and posting logic in the Contract Billing settings (T-code: ES32 for billing document types and revenue recognition).
- Set up the billing document types and assign them to appropriate posting keys and account determination procedures.
- Use the standard SAP reports or custom BI reports to extract unbilled revenue data for analysis and reconciliation.
unbilled revenue reporting - Related SAP Terms
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