Revenue Explanation
Application component: Fiori UI for Revenue Accounting and Reporting
App type: Transactional
Line of business: Finance
Leading industry: Cross Industry
Solution capability: Financial Accounting (S/4)|Revenue and Cost Accounting (S/4)
Description:  The application enables you to verify the following information:  How much revenue is recognized?   When was fulfillment trigged and how many quantities are delivered, or manually fulfilled?   What kind of attributes related to the revenue recognition exist, such as Allocated Amount and Fulfilled Quantity?   How much revenue catch-up is recognized?   What kind of events trigger the revenue recognition?   You can verify the result of price allocation for a revenue contract by following these steps:  Open the Revenue Explanation Fiori App.   Search for your performance obligations.   Click on a particular performance obligation to review the revenue recognition. The POBs are grouped by Fiscal Year Period.   The Recognized Revenue is arranged by different Revenue Adjustment Reason. You can analyze the Recognized Revenue based on the different Revenue Adjustment Reasons as follows: Fulfillment – Revenue recognized based on fulfillments. If you click the line item of Fulfillment, detailed fulfillment entries are displayed:  For distinct performance obligations, fulfillment details include Fulfillment Date, Fulfilled Quantity, and Fulfillment Document.   For compound group performance obligations, fulfillment details of the compound group and non-distinct performance obligations are displayed.    Catch-up – Revenue Catch-up is displayed as Recognized Revenue when retrospective changes occur, such as an update to the standalone selling price that triggers a contract change with retrospective mode. If you click the line item of Catch-up, change logs of the retrospective changes are displayed with Field Name, New Value, and Old Value.  For distinct performance obligations, change logs of the retrospective changes are displayed along with Field Name, New Value, and Old Value.   For compound group performance obligations, Revenue Catch-up of non-distinct performance obligations within the compound structure is also displayed with the change logs.     Contract Modification – Revenue recognition is impacted when any contract modification occurs. If you click the line item of Contract Modification, change logs are displayed for the contract modification. If you want to know what happened for the Allocated Amount on the Contract Modification line, you can click the hyper-link for the Allocated Amount. You are then able to check the detailed explanation in the Allocated Amount Explanation application.     
Revenue Accountant can use this application to display explanation for recognized revenue for a single revenue contract.
Key features:  Search Criteria You can search for a performance obligation using attributes of the performance obligations, such as Operational Document and Performance Obligation Type.Note You can only search performance obligations whose composition is Distinct or Compound. It means the application only supports revenue explanation for distinct performance obligations and compound group performance obligations. Fuzzy Search You can perform a fuzzy search using the following fields: Performance Obligation, Performance Obligation Name, Company Code, Accounting Principle, Created By, Last Changed By, Business Partner, Customer, Performance Obligation Status, and Sales Document Currency. Revenue Adjustment Reason To explain the revenue adjustment for a performance obligation, the system provides the three following Revenue Adjustment Reasons:  Fulfillment: The revenue is recognized based on the fulfillment, such as fulfillment from a goods issue or manual fulfillment. For each period, the recognized revenue before each prospective change will be grouped into one line with an aggregated value for Recognized Revenue.   Catch-up: The revenue is recognized based on a retrospective change. Catch-up is displayed as the first line of each accounting period if there is any revenue catch-up from retrospective changes.   Contract Modification: For Recognized Revenue with revenue adjustment reason, the Contract Modification is always zero. Each prospective change is displayed as a separate line with the revenue adjustment reason.   If you would like to perform revenue explanation for a compound group performance obligation, then more information is displayed:    Fulfillment: The fulfillment revenue is the total amount of the compound structure. Fulfillment information from non-distinct performance obligations within the compound structure are also displayed.   Catch-up: The Revenue Catch-up is the total amount of the compound structure. The Revenue Catch-up from non-distinct performance obligations within the compound structure is also displayed.   
Business roles: Revenue Accountant| External Auditor
External Auditor : 
Reviews the accounts of organizations to ensure the accuracy and completeness of their financial records.

Revenue Accountant : 
Displays and edits revenue contracts relevant information, check and reconcile postings for revenue contracts. 

Cost Accountant - Sales : 
Analyzes markets, products, customers, distribution channels, and discount strategies. Reports and monitors KPIs for incoming orders, revenue, and margins. Contributes to fulfilling the organization’s sales strategy.