After the delivery of the products to the customer, you create a customer invoice and post it to accounting. The system automatically posts the amounts to the corresponding deferral accounts for revenues. You notice that the amount credited to the Deferred Revenues account is XXX. Then, during the period-end closing, you start the revenue recognition run to reset the revenue and expense deferrals, and make sure the related sales order item is processed successfully. But when you check the respective journal entry, you find that the amount debited to the Deferred Revenues account is YYY not XXX.
Reproducing the Issue
- Go to the Customer Invoicing work center, and choose the Invoice and Credit Memos view.
- Open the customer invoice XYZ, and then choose View All.
- Navigate to the Document Flow tab.
- Take a note of the sales order ID, which is ABC.
- Open the corresponding journal entry of the customer invoice XYZ.
- You can see that the amount credited to the Deferred Revenues account is XXX.
- You then go to the Cost and Revenue work center, choose the Periodic Tasks view.
- Select Revenue Recognition subview.
- Select the run executed for the same period of the posting date in the customer invoice XYZ.
- Choose View and go to the Postings tab.
- Open the journal entry, and you can see that for the item in sales document ABC, the amount debited to the Deferred Revenues account is YYY not XXX.
During the creation of the customer invoice XYZ, the net price of the item is manually changed, which makes the net value in the customer invoice different from that in the sales order ABC, meanwhile, as the Accrual Method assigned to this sales order item is 2- Recognize revenue at point of delivery, so during the revenue recognition run, the system takes the planned value from the sales order instead of the real value in the customer invoice. This is why there is an amount difference between the financial document of the customer invoice and the revenue recognition posting.
In order to clear the differences, there are two possible solutions:
- If the sales order is still In Process, and the rest of the products are still about to be delivered, then there will be a final customer invoice associated. When the customer invoice is finally posted, the difference should be cleared.
- If there are no further delivery and customer invoice expected, follow the steps below:
- Go to the Cost and Revenue work center, and choose the Master Data and Allocation view.
- Select the sales order item for sales order ABC.
- Choose Reassign, and then select Accrual Method.
- Choose an accrual method of 4-Recognize revenue.
- Then go to the Periodic Tasks view, select the Revenue Recognition subview.
- Create a revenue recognition run for the same period.
- The revenue will be recognized, and the difference should be cleared accordingly.
KBA , SRD-FIN-ACR , Receivables , How To