SAP Knowledge Base Article - Public

2611112 - Incurred Costs on Customer Sales Project Realized on the Wrong Project Task

Symptom

  • An employee has recorded time on Project task XYZ-XX of Customer Sales Project XYZ (XYZ represents the Project ID; XYZ-XX represents the Project task on which the time was initially recorded).
  • Eventually, this expense got realized on the expense account defined for Internal Service Confirmations.
  • However, the expense is no longer associated with Project Task XYZ-XX but now realized on Project Task XYZ-YY (XYZ-YY represents a different task of Project XYZ).

Environment

SAP Business ByDesign

Reproducing the Issue

In general, two Business Transactions are generated for Expenses of Customer Projects with Sales Integration:

  1. The original Expense posting, for example, the Internal Service confirmation generated with the Employee Time Calendar creation: 

    Example:

    An Employee records time on Project Task XYZ-XX incurring a cost of 100,00 LC*.

    Expense Posting (expense gets associated with the Project Task:

    G/L Account Internal Services:  Credit: 100,00 LC
    Deferred CoGs/ G/L Account (Origin): Internal Services:  Debit: 100,00 LC Project Task XYZ-XX
  2. The Expense Assignment to Sales Document Item is generated [the Customer Project Expense List (CPEL)].With this posting the expense then gets assigned to the respective project-based Sales Order item; In the ideal   scenario this posting happens automatically at the time of the Expense posting. Or,the CPEL is posted once the Expense got manually assigned to the Sales Order Item, should the system not be able to identify the respective Sales Order item automatically.

If no Accrual Method is assigned to the Sales Order item, 

  • all incurred project costs will get realized on the respective Expense Account as soon as they are connected to the respective Sales Order item, usually with the CPEL posting, with the Sales Order item specifactions taking priority over the original project expense:
    Deferred CoGs/ G/L Account (Origin): Internal Services: Credit :100,00 LC* Project Task XYZ-XX
    Deferred CoGs/ G/L Account (Origin): Internal Services: Debit  :100,00 LC Project Task XYZ-XX Sales Order Item ABC-AA**
    Deferred CoGs/ G/L Account (Origin): Internal Services: Credit : 100,00 LC Project Task XYZ-XX Sales Order Item ABC-AA
    G/L Account Internal Services  Debit: 100,00 LC  Sales Order Item ABC-AA Project Task XYZ-YY (assigned to Sales Order Item ABC-AA)

If an Accrual Method is assigned to the Sales Order item,

  • the incurred project costs are posted as Deferred Costs of Goods sold with the Expense Account defined as G/L account (Origin), associated with the Sales Order item during the Expense Assignment posting:
    Deferred CoGs/ G/L Account (Origin): Internal Services: Credit :100,00 LC* Project Task XYZ-XX
    Deferred CoGs/ G/L Account (Origin): Internal Services: Debit  :100,00 LC Project Task XYZ-XX Sales Order Item ABC-AA*
  • The expense gets realized only with the Revenue Recognition run (provided the conditions of the assigned Accrual Method are met), with the Sales Order item specifactions taking priority over the original project expense:
    Deferred CoGs/ G/L Account (Origin): Internal Services: Credit :100,00 LC* Project Task XYZ-XX Sales Order Item ABC-AA
    G/L Account Internal Services  Debit  :100,00 LC Sales Order Item ABC-AA* Project Task XYZ-YY (assigned to Sales Order Item ABC-AA)

* (LC represents Local Currency)

** (ABC-AA represents the Sales Order item ID)

To find both Business Transactions,

  1. Navigate (for instance) to the Cost and Revenue work center and here to the Reports - List view.
  2. Find the Sales Documents - Line Items report.
  3. Enter all the mandatory data.
  4. In the Project field, enter Project XYZ.
  5. Press Go.
  6. Now add Associated Source Document ID to the Rows and filter for Employee Time Calendar XXX (XXX represents the ID of the Internal Service Confirmation).
  7. Press Go.
  8. Now add further characteristics to the Rows and sort all characteristics as follows (All other characteristics can be removed from the current report selection):
  • G/L Account
  • G/L Account (Origin)
  • Associated Source Document ID
  • Business Transaction
  • Journal Entry ID
  • Project Task

Two (three) Business Transactions got generated for the Expense: The Expense Assignment to Sales Document (the CPEL posting) and the Internal Service Confirmation.

If no Accrual Method is assigned to the Sales Order Item:

  • The expense, for example, Employee Time Calendar XXX is associated with Project task XYZ-XX.
  • But the Expense Assignment is associated with project task XYZ-YY, realized on the Expense Account for Internal Service Confirmations.

If an Accrual Method is assigned to the Sales Order Item:

  • The expense, for example, Employee Time Calendar XXX is associated with Project task XYZ-XX.
  • The Expense Assignment is associated with project task XYZ-XX and Sales Order Item ABC-AA.
  • The Revenue Recognition run realizes the expense on Sales Order Item ABC-AA but Project Task XYZ-YY.

Cause

Costs and Revenues recorded for Customer Sales Projects are always realized on the Project task associated with the Sales Order item to which the expenses got assigned to during the Expense Assignment posting/ the CPEL generation. During the Expense realization the specifications of the Sales Order Items, such as the associated Project Task, Product or the Profit Center take priority over the assignment settings of the original, incurred expense.

The expense of time recording XXX gets associated with project task XYZ-YY because the sales order item to which this expense got assigned to during the CPEL creation is associated with project task XYZ-YY. Therefore, the project task from the time recording shifts from task XYZ-XX over to XYZ-YY when the Expense gets realized, either directly with the CPEL posting (Sales Order item without accrual method) or via the Revenue Recognition run (Sales Order Item with Accrual Method).

To check this behavior check the Sales Documents - Line Items report again:

Use the same characteristics and sorting as above and then add the Associated Sales Order and Item attribute to the rows:

  • You can see that Sales Order item ABC-AA has been assigned to the expense [Another way to check the assignment, would be to directly look at the Journal Entry of the Expense Assignment (CPEL) posting].

To find out/ double-check which project task is associated with the assigned Sales Order item:

  1. Go to the Cost and Revenue work center and here to the Sales Document Items view.
  2. By default you can search for Sales Order items.
  3. Into the Find field, enter the Sales Order item ID ABC-AA.
  4. In the Details area navigate to the Associated Objects tab.
  5. Here you can see the Project ID as well as the Project task XYZ-YY associated with Sales Order item ABC-AA.

Resolution

Whenever a project-based sales order item is being created, the system automatically generates an Assignment Rule for the respective project task- sales order item connection. Here, Sales Order item ABC-AA is associated with project task XYZ-YY.

To identify all automatically generated rules:

  1. Go to the Project Management work center and here to the Invoice Preparation - Not Invoiced Times and Expenses view.
  2. In the find field enter project ID XYZ.
  3. Click Edit Time and Expenses.
  4. In the Edit Time and Expenses screen click Edit Assignment Rules and select View All Rules.
  5. Now look for project task XYZ-YY.
  6. You will see a rule for this task connecting it with Sales Order item ABC-AA.

As a result,

  • All incurred expenses recorded on project task XYZ-YY will be automatically assigned to Sales Order item ABC-AA.
  • All incurred expenses recorded on different project task, for example, XYZ-XX, which are manually assigned to Sales Order item ABC-AA will be realized on project task XYZ-YY as this is the project task associated with Sales Order item ABC-AA.

This means, if project costs from time recordings (or any other expenses, for example, expense reports, goods receipts, supplier invoice items) are to be realized on the project tasks for which the expense was incurred, or on any specific project task of your choice, you need to ensure that the expense gets assigned to the Sales Order item which is associated with this exact project task.

If you, for instance, create a new project task, XYZ-XX, in project XYZ  then you need to create a new Sales Order Item which you then assign to this new project task XYZ-XX.

Or, if you want certain project expenses to be realized on a specific sales order item/ project task combination then you need to create a new Assignment rule to ensure these expenses get assigned to the desired sales order item/project task:

  1. In the Edit Time and Expenses screen click again on Edit Assignment Rules and select View Assignment Rules.
  2. Press Add Row.
  3. Enter the project task of your choice and then enter the respective sales order item which shall be assigned to all expenses incurred on the chosen project task.
  4. Ensure that this new, manually created rule, takes priority over any other rules for the selected project task as the assignment rules are being used in a hierarchical order.
  5. You can define further details to specify the automatic sales order item assignment, such as the expense type under Source, a specific Employee and/ or Product.

Now, whenever an expense is incurred for the defined project task (in combination with any further details) the respective Sales Order item will be automatically assigned.

If you need already existing, not yet invoiced, expenses to be reassigned according to the new rule, choose the Apply Assigned Rule button and select one of the given choices to either apply the rule to all items or to all items without any assignment or just certain, selected items..

Keywords

Wrong project task assigned to Project Expense, Expense Assignment, Sales Order Item Assignment Rules, Customer Sales Projects Incurred Expenses, Project Task Association , KBA , wrong project task in cpel , time confirmation to project task , expense assignment project task , SRD-FIN-COR , Cost & Revenue , Problem

Product

SAP Business ByDesign all versions