How Revenue Recognition Handle the Posting Logic for Tax in SAP Business by design

[mohamedsamir1]

Hello every one, i just want to understand the Revenue Recognition Posting Logic for example ( a revenue recognition at the point of delivery ) what is the this case reflect on Tax`s

[mohamedsamir1]

Greetings

can we recap the cycle from the beginning > A Project is Created > then a Sales order created and assigned to the project > then an accrual method is assigned to the Sales order ( RECOGNIZE USING COST-TO-COST POC ) > then a time Confirmation is executed > then Creating Customer Project Invoice > release the invoice > then Create Revenue recognition run
is that correct ?
if yes > the assigned Tax to the Sales order should be considerd to be in the Posting tab in the Revenue recognition run or not

[CHANDRESHJAIN]

Greetings

whether any journal entry created at the time of revenue recognition run? if yes tax should be posted

if no tax posted , you can check for manual tax entries in tax management tab. Here tax entries can be posted as per required by law.

Regards

CA Chandresh Jain

[CHANDRESHJAIN]

hi

hope this is helpful

in india, Tax is payable at the time of movement of goods, for that e-invoice and e-way bill generated. so revenue recognise is at the time of movement of goods , if during movement of goods , sales cancel with any reason ,then credit note is issued against that ,which adjust the tax payable.

Regards

CA Chandresh Jain

[mohamedsamir1]

Hi

it was helpful

and thanks for the Quick response > i know that case its called recognizes the revenue at the point of the delivery > but what i meant to say is that when i create a revenue recognition run for period ( included in the period a 1* Project with sales integration - 2* Sales order with accrual method assigned to it ( RECOGNIZE USING COST-TO-COST POC ) that means If no manual percentage of completion (POC) is valid on the date of the run, the run calculates the POC by dividing the confirmed costs by the planned costs in this Case the Revenue Recognition Run will be with no Tax it will just resets the deferral of the confirmed costs. so my Question is Tax Posting Logic in this case should be Posted as what ?