Event-Based Revenue Recognition (EBRR) in SAP S/4HANA is designed to recognize costs and revenues in real-time as business events occur, ensuring compliance with accounting standards like IFRS 15. The primary event in a standard sales process that triggers recognition is the goods issue.

At the moment of goods issue, two key financial postings happen simultaneously:

1. The cost of the goods sold (COGS) is recognized. The planned costs associated with the sales order item are realized and posted to the P&L. This is reflected as "adjusted costs" in EBRR analysis.

2. The revenue is recognized. As control of the goods has transferred to the customer, the corresponding revenue is earned and posted, typically as accrued or unbilled revenue. This is reflected as "adjusted revenue."

These two actions at goods issue represent the core of EBRR, applying the matching principle in real-time.

A. The cost of goods sold is posted during the billing process: This is incorrect. With EBRR, the cost of goods sold is recognized at the point of goods issue, not during billing, to match costs with the revenue event.

D. The billing process results in an offsetting entry for the adjusted revenue: While this statement is factually correct (billing clears the accrued revenue posted at goods issue), options B and C describe the primary recognition event itself, which is the most fundamental consequence of EBRR. The offsetting entry is a subsequent, mechanical step resulting from the initial recognition.

1. SAP Help Portal

SAP S/4HANA Cloud

"Event-Based Revenue Recognition - Sell from Stock (BJE)": "When you post a goods issue for the sales order

the cost of goods sold is posted... At the same time

revenue is recognized for the sales order item." This source directly supports that both cost (C) and revenue (B) are recognized at goods issue.

2. SAP Learning Hub

Course S4F05 "Revenue Accounting and Reporting in SAP S/4HANA": Unit 4

Lesson: "Event-Based Revenue Recognition for Sales Orders". The process flow diagrams and explanations in this unit illustrate that the goods issue event triggers the real-time posting of both recognized costs (COGS) and recognized revenue (accrued revenue)

which are the foundational consequences of the EBRR process. The planned values from the sales order are thus adjusted to recognized values.