Amount posted in Revenue Recognition is higher than expected for Customer Contract Item.
SAP Business ByDesign
Reproducing the Issue
- Go to the Cost and Revenue work center.
- Go to the Revenue Recognition view.
- Find Run ID AAA (AAA means the Run ID).
- Click View.
- Go to the Processed Successfully tab.
- Go to the Only Posting Information sub-tab.
- Go to the Time Based sub-tab.
- Find Customer Contract.
Customer Contract Item Current Earned Revenues Amount is greater than expected.
The End Date was changed by the date maintained on Cancellation Effective On for the Item in the Contract and it is a date earlier than the End Date set in the begging of the Customer Contract.
Before the change in the End Date the expected was (for example), a 24 months contract of 24.000 USD total, meaning 1.000 USD per month.
When the End Date got changed, the length of the Contract changed to 12 months. The system will recalculate the monthly amounts and post the total difference.
Considering that the Accrual Method is Straight-line – prorate partial periods, check below comparison:
- End Date was 01.02.2020.
- There were 11 posts of 1.000 USD until 01.01.2019.
- End Date got changed by Cancellation Effective On date to 01.02.2019.
- System recalculates the month amount to 2.000 USD.
- Next Revenue Recognition will post 13.000 USD to correct the month amounts from previous months.
This is the correct behavior of the system since version 1808.
Revenue Recognition, End Date, Customer Contract, Accrual Method , KBA , revenue recognition , end date , customer contract , accrual method , SRD-FIN-COR , Cost & Revenue , How To