Can we Accrue Revenue in SAP at Outbound Delivery?

Can we Accrue Revenue in SAP at Outbound Delivery?

In SAP Procurement, we can accrue liability when we receive materials. This accrual is offset to Vendor account when Vendor invoice is input into the system.

Typically, the accounting entry would be as follows:

At time of Goods receipt:

    • Debit          Inventory
    • Credit         Goods Receipt/ Invoice Receipt clearing

At time of input of Vendor Invoice in the system

    • Debit         Goods Receipt/ Invoice Receipt clearing
    • Credit       Vendor


In SAP Sales, why can we not accrue sales when delivery is made to the Customer?

When Outbound delivery is posted (with Post Goods Issue), SAP posts the following:

  • Debit          Cost of Sales
  • Credit         Inventory

Sales Accrual entry as below should also be posted.

  • Debit          Revenue Accrual
  • Credit        Revenue

When billing is performed, the accrual account can be offset.

  • Debit          Customer
  • Credit        Revenue Accrual
  • Credit        Output Tax

Customers have to execute reports to identify Sales Orders delivered but not billed. Depending on the delivery terms on the Outbound Delivery, they work out whether accrual should be posted on not. In most cases, all five criteria (as per IFRS) for identifying the critical event for recognizing revenue on the sale of goods are met. 

Do any of you have any perspectives on this? Please use the comment box below.


Thanks, Rajesh


  1. Hi Rajesh,

    Greetings! Guess the one way to achieve this could be through Standard SD Pricing Procedure + exits. However not sure why SAP has not introduced this as a standard customizable feature applicable with multiple rules/conditions. Would be pretty much interested to hear more on this and your other blogs.


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