At customer-specific pharma manufacturing projects, the revenue generated as part of the client contract should be recognized throughout the project duration. This method is called completed percentage approach. The method of the revenue recognition follows the rules described in the IFRS IAS rules, although there might be exceptions due to local accounting regulations.
According to the German legislation rules of accounting, a project’s revenue can only be recognized at the end of the project, when it is fully completed and delivered. This method is called completed contract approach.
Life Sciences Advanced Finance Management module provides the capability to eliminate the recognized revenue posted based on the IFRS IAS accounting regulations and only recognize the revenue when the project is completed.