Sales Order item XYZ (XYZ represents the Sales Order item ID) of type Service Fixed Price (Project) has been fully delivered and invoiced. The project tasks is in status Stopped or Completed or Closed. However, the Revenue Recognition run XXX (XXX represents the Revenue Recognition run ID) has not considered the Sales Order item, i.e. not realized any costs or revenue associated with this Sales Order item.
In Customer Invoicing you notice the Delivery Status set to Finished. The Invoicing status, however, is still In Process.
Reproducing the Issue
- Go to the Cost and Revenue work center.
- Go to the Projects view.
- You find Project ABC (ABC represents the Project ID) which is in status Completed (Or Stopped or Closed).
- Choose the Edit Percentage of Completion button.
- The column Calculated PoC displays 100%. Hence, the Sales Order item has been fully delivered.
To check the Delivery and Invoicing Status of the Sales Order item
- navigate to the Customer Invoicing work center.
- Go to Project Invoicing – Sales Orders.
- Find the respective sales order.
- You notice the Invoicing Status is still In Process.
- In the Details section go to the Items tab. Here you notice that the Fulfilment Status of the item is set to Finished.
As the Sales Order item has been fully delivered and invoiced and as the Project task is Completed (or Stopped or Closed) you expect the Invoicing Status to be Finished as well.
For project-based Sales Order items with accrual method Recognize at Completed Contract, the revenue recognition run considers Sales Order items which are completely fulfilled and invoiced and where the Final Delivery or Invoice Date has passed.
The Delivery/ Fulfilment status will be automatically be set to Finished once the associated Project or Project Task has been set to status Stopped, Completed or Closed.
The Invoicing status, however, will remain in status In Process: Project- based sales order items can be invoiced more than once. This also means that they can become relevant for revenue recognition more than once. Therefore, the invoicing needs to be manually finished if no further invoice is planned.
To manually finish the Invoicing,
- Go to the Customer Invoicing work center.
- Navigate to the Project Invoicing: Sales Orders view.
- Select the Sales Order.
- Press Change Status and select Finish Invoicing. To change the Invoicing status of a particular Sales Order item, navigate to the Items tab in the Details section. Here change the Invoicing status to Finished.
Now, after all conditions are fulfilled the Sales Order/ Sales Order item will be considered for Revenue Recognition.
KBA , SRD-FIN-COR , Cost & Revenue , How To