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Rev. Recogniton in Scope, however no accrual method was assigned

Dear All,

currently i experience the following Situation:

Revenue Recognition is in Scope

Sales Order Items --> Item Type Service fixed Price Project

Cost and revenue Sales Document Items --> no accrual method is assigned

Then supplier invoices has been recorded via Acct Assignment Project and times has been recorded. All posting items has been recorded as

Deferred Cost of Goods Sold.

1st I Need to post back all deferred cogs back into the G/L acct. origin

2nd I Need to get rid of the Revenue recognition in scope

I would highly appreciate if someone can help out in this Situation.

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5 Answers

  • Posted on Jun 04, 2018 at 05:31 AM

    Hello Sebastian,

    if you assign no accrual method, it should directly realize COGS. I tried it out with an event-based scenario (product delivery). Neither the goods issue, nor the supplier invoice posted to deferred accounts in my case, so I guess you still have an accrual method assigned. If not, create an incident.

    You should also check fine-tuning. Assure no accrual methods are assigned by default if you don't want to do rev rec.

    To clean up your current situation: just un-assign accrual methods from the sales order and execute a rev rec run.

    Best regards,

    Thomas

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  • Posted on Jun 04, 2018 at 09:46 AM

    Hi Sebastian,

    Adding to the Thomas's reply.

    Please open the help document < Customer Projects > and refer to the section -> New Posting Logic to understand the postings behavior.

    Thanks

    Lokesh

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  • Posted on Jan 31, 2019 at 12:07 PM

    The Problem was Cost´s recorded into the Customer Project w/o assignment to Sales Order Item.

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  • Posted on Aug 04, 2020 at 02:56 AM

    Hello Sebastian,

    May you please elaborate how did you resolve it?

    I'm getting into the same issue.

    Thanks

    Luisa

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  • Posted on Aug 04, 2020 at 06:35 PM

    FYI, I created an incident with SAP, and this the system behavior they confirmed:

    In your system Revenue Recognition is scoped.

    In this case, even when no Accrual Method is assigned to a Sales Order item, the associated Project expense, here, the invoice, will still be posted to the Deferred Cost of Goods sold account. For every Sales Project expense the system then generates an Expense Assignment to Sales Document transaction in the form of a Customer Project Expense List (CPEL).

    This CPEL gets posted as soon as the Expense gets assigned to a Sales Order Item.

    If an Accrual Method is assigned to the Sales Order item then the Expense will only get realized on the Expense account through the Revenue Recognition run.

    If, however, no Accrual Method is assigned to the Sales Order item, then the CPEL posting contains two further posting lines, one to offset/credit the Deferred Cost of goods sold account, in association with the Project task as well as the Sales Order item; and one to debit the Expense Account (G/L Account origin), again in association with the Sales Order item and the Project task. So, as soon as the Expense as assigned to a Sales Order item (without an assigned Accrual Method) the CPEL will be posted (provided the respective Accounting Period is open) and the Expense is realized on the G/L Account Origin.

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