- You assign Accrual Method 304 - Straight-line – prorate partial periods to a Customer Contract Item with Fix Price Invoicing Method.
- The life span of the Contract Item covers only full periods.
- You expect that the Revenue to be realized is evenly distributed between all periods, or adjusted in the last period only.
- Instead, for the first as well as the last period the Revenue is calculated based on a day-rate.
SAP Business ByDesign
Reproducing the Issue
- In the Cost and Revenue work center go to the Sales Documents Items view.
- Select Customer Contract Items and find item XYZ-XX (XYZ-XX represents the Contract Item ID).
- The life span of the Contract item covers full periods only, starting on the first day of Period XXX and ending on the last day of period YYY (XXX represents the first covered Accounting period, YYY represents the last covered period).
- Navigate to the General tab to verify that the Invoicing Method of the item is Fix Price.
- Navigate to the Accounting Data tab to verify that the item is using Accrual Method 304 - Straight-line – prorate partial periods.
- Also in the Accounting Data tab, check the Revenues per Period in default Set ob Books table:
- You notice that the amounts calculated in the first period XXX and last period YYY are calculated based on a daily rate.
- The remaining amount is equally divided between the periods in between.
As the contract item only covers full periods, you expect the revenue to still be divided evenly between all periods, or to be only adjusted in the last period of the item's life span.
- With the Accrual method 304 - Straight-line – prorate partial periods the first and last period are always calculated based on a daily rate.
- This Accrual Method is used for contract item life spans which start as well as end within a period.
- Therefore, even when the item's life span only covers full periods, the first and last periods are always calculated based on the item's day-rate (Contract Item Net Value ÷ Total Number of Days).
If a Contract Item's life span covers full periods only, you may use Accrual Method 303 - Straight-line – even periods to distribute the Item's Net Value evenly between all periods.
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