Medical Systems

Functional Design
Calculation of Accrual and Deferred
revenue for new RA KEY AUFTCB

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Medical Systems

1 Document Revision History

The revision history is updated to summarize changes to the document.
Revision

Versio

Reason & Summary of Change(s)

Changed By

Date
Mar 2015

n
1.0

Initial document

Arvind Agrawal

1.1 Approvals
This document requires the management approvals as layout in table 2.

Table 2: Management Approvals

Name & Job Title

Date [dd.mmm.yyyy]

<Name>
Business Representative
<Name>
Project leader
<Name>
Consultant

KONINKLIJKE PHILIPS ELECTRONICS N.V. 2006

All rights are reserved. Reproduction in whole or in part is prohibited without the
written consent of the copyright owner

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Medical Systems

Table of Contents
1

Document Revision History....................................................................................2

1.1

Approvals........................................................................................................ 2

Functional Design Content.....................................................................................4

2.1

Scope.............................................................................................................. 4

2.2

Prerequisites.................................................................................................... 4

2.3

Assumptions.................................................................................................... 4

2.4

References....................................................................................................... 4

2.5

Terms and Abbreviations.................................................................................5

Functional Requirements.......................................................................................6
3.1

Overview......................................................................................................... 6

3.2

Output............................................................................................................. 6

3.3

Logical Data Model.......................................................................................... 6

3.4

Input................................................................................................................ 6

3.5

Test Approach and Criteria..............................................................................6

3.6

Security........................................................................................................... 7

Functional Realization............................................................................................ 8
4.1

Selection screen.............................................................................................. 8

4.2

Logic to derive BU and Sales doc type.............................................................9

4.3

Security........................................................................................................... 9

4.4

Test Approach and Criteria............................................................................10

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2 Functional Design Content

2.1 Scope
Business Scenario

HCONESAP_9.4-FICO Financials Processes in ERP

Business Process

Performing Closing Operations HC_9.4

Process step

Provide information for internal and external reporting HC_9.4

2.2 Prerequisites
< Describe any prerequisites (such as; functionality, master data, field types, conditions, etc.)
needed for the solution to be successful. >

2.3 Assumptions
< Describe any assumptions needed to support the success of the solution. For example;
standard SAP transactions will be used. >

2.4 References
<Include references to the Project Manual, BPML, (K)ICS, Philips Standards and other relevant
business and project documentation.>

Reference
Project

Number/Procedure

Comment

Manual
BPML
CRM
ICO
UXW

2.5 Terms and Abbreviations

< Give an explanation of all PMS specific terms and abbreviations that are used in the
document.>
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Medical Systems
Term

Description

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Medical Systems

3 Functional Requirements
3.1 Overview
As part of Revenue accounting project it was decided to use cost buckets to
more accurately calculate the deferred revenue and accruals.
This new method will be applicable to all the company codes in MP1, which
means one and only harmonized process to recognize project revenue.
To achieve the same major parts of the current user-exit will not be used and a
new logic is to be written to calculate Revenue deferral and cost accrual.

For example:Cost Bucket Installation Philips Neither to be considered as part of

Deferred revenue calculation nor in accrual calculations.
And
When status is REL Installation Philips should post WIP
When status is FNBL It should post cost of sales if any, but no accrual.
As we are creating a new RA key the logic especially built for DX96 will also needs
some improvements.

3.2 Output
Standard output, no change.

3.3 Logical Data Model

< The data model shows all entities that constitute the business process. The data model verifies
that all required elements and any extra processes necessary are available in the system. Define
separately any external processes/data required for processing. >

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3.4 Input
<Describe input for the business process. Include the under what conditions the information
entered into the system (the application or administration) and any checks and validations
applied.>

3.5 Test Approach and Criteria

< Describe how testing will be organized and performed. >

3.6 Security
< Describe how security for the function will be implemented. >

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4 Functional Realization
The focus in this section is on how the requirements from the previous section are fulfilled. The
solution is described at a functional level.

Table creation

Create a table where we can maintain if Revenue Deferral or/and Accruals are valid
for a line id.

4.1 User-exit modification

Currently user-exit EXIT_SAPLKKAG_001 is used comprehensively to take care of different
requirements of GSSNA, NON-GSSNA and DX96.
User-exit modification A, B, C, D, E, F, Z and blank are used to cover the above mentioned
requirements.
To simplify and move towards more standardize solution, the new solution will use minimum
coding and hence all the existing modification must not work for new RA Key AUFTCB but two
new modification will be created.
For Non-DX96 create new modification M
Logic to calculate the Revenue deferral
1. Total the actual revenue
2. Calculate the actual cost for line-ids if Revenue deferral is active in Z table for line-id.
3. Calculate the planned cost for same line Ids.
Apply following formulae
Revenue deferral = Actual revenue (Actual revenue/ Planned cost * Actual cost)
Logic to calculate the accrual

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Medical Systems
1. Calculate the actual cost for line-ids for line-ids if accrual is active in Z table for the lineid.
2. Calculate the planned cost for same line Ids.
Apply following formulae
If planned cost for the line-id is more than 0 and actual cost is less than planned cost
Accrual = Planned cost per active line id Actual cost per active line -id
For DX96 create new modification N
Logic to calculate the Revenue deferral
If Sales order currency <> WBS element currency.
1. Total the actual revenue in sales order currency (SO Currency)
2. Calculate the actual cost in (SO Currency) for line-ids if Revenue deferral is active in Z
table for line-id.
3. Calculate the planned cost in SO currency for same line Ids.
Apply following formulae
Revenue deferral in SO currency = Actual revenue (SO currency) (Actual revenue (SO
currency)/ Planned cost (SO currency) * Actual cost (SO Currency))
Convert the calculated Revenue Deferral in SO currency to WBS element currency using balance
sheet rate and pass it to SAP for postings.
The formulae for recognized revenue will be Revenue Invoiced in WBS element currency (at
activity rate) Calculated Revenue deferral in WBS element currency using balance sheet rate.
Logic to calculate the accrual
1. Calculate the actual cost (SO Currency) for the line-ids if accrual is active in the Z table
for the line-id.
2. Calculate the planned cost (SO Currency) for the same line Ids.
Apply following formulae
If planned cost for the line-id is more than 0 and actual cost is less than planned cost
Accrual (SO Currency) = Planned cost per active line id (SO currency) Actual cost per
active line id (SO Currency)
Convert the accrual (SO currency) to WBS element currency with balance sheet rate.

4.2 Security
No change.

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4.3 Test Approach and Criteria

Create new Sales orders and WBS elements post the values and execute the RA and settlement
in different periods for proper testing.

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