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In a make-to-order business scenario with manufacturing, how does event-based revenue recognition ensure that COGS are always aligned with revenues?
Based solely on learning.sap.com, the correct answer to ''Which option ensures COGS are aligned with revenue in a make-to-order scenario using event-based revenue recognition?'' is:
A. At goods issue, COGS and revenue are recognized.
Here's why:
* In event-based revenue recognition (EBRR), when you post a goods issue tied to delivery, the system simultaneously recognizes both revenue and COGS in real time, based on predefined posting rules. This ensures real-time alignment between cost and revenue. learning.sap.com+6help.sap.com+6linkedin.com+6
No other delivery event---like billing or proof of delivery---provides this immediate alignment:
* Billing moves and clears billing-related entries later.
* Proof of delivery doesn't automatically trigger combined cost and revenue postings.
Final Answer:
* A. At goods issue, COGS and revenue are recognized
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