What is deferred revenue in SAP SRD-FIN-COR - FIN-Cost and Revenue?

SAP Term: deferred revenue

• Component: SRD-FIN-COR

• Component Name: FIN-Cost and Revenue

• Description: Revenue recorded in an accounting period but not yet recognized in that period. Deferred revenue is held on deferral accounts until it is recognized.

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• Key Concepts: 
  Deferred revenue is a type of liability that arises when a company receives payment for goods or services before they are delivered. It is also known as unearned revenue or deferred income. The company records the payment as a liability on its balance sheet until the goods or services are delivered, at which point the liability is converted into revenue. 
  
  How to use it: 
  In SAP, deferred revenue is recorded in the SRD-FIN-COR FIN-Cost and Revenue Accounting component. This component allows companies to track and manage their deferred revenue liabilities. Companies can use this component to record payments received, track the delivery of goods or services, and convert the liabilities into revenue when appropriate. 
  
  Tips & Tricks: 
  It is important to keep track of deferred revenue liabilities in order to ensure accurate financial reporting. Companies should regularly review their deferred revenue accounts to ensure that all payments have been properly recorded and that all goods or services have been delivered. 
  
  Related Information: 
  For more information on deferred revenue in SAP, please refer to the SAP Help Portal (https://help.sap.com/viewer/product/SRD_FIN_COR/FIN_COA/en-US). This resource provides detailed instructions on how to use the SRD-FIN-COR FIN-Cost and Revenue Accounting component to manage deferred revenue liabilities.