- You notice that certain expenses on Customer Sales Project XYZ (XYZ represents the project ID) are not realized on the respective Expense account. They are still deferred.
- You check the Not Invoiced Time and Expenses screen in Project Management and confirm that these expenses are all correctly assigned to Sales Order items.
- You check the Sales Accruals report again and verify that these expenses correctly appear as assigned to Sales Order items. However, they appear as Deferred Costs of Goods sold.
As the expenses, such as supplier invoice items, internal or external time recordings or expense reports, are assigned to Sales Order items they should have been recognized and realized; either immediately- if no accrual method is assigned to the Sales Order item - or by the Revenue Recognition run - in case an accrual method is assigned to the Sales Order item.
SAP Business ByDesign
Reproducing the Issue
To check the Sales Accruals Report after the Revenue Recognition run:
- In the Cost and Revenue work center go to the Reports: List view.
- Find and open the Sales Accruals report.
- Filter for Project XYZ and press Go.
- In the Deferrals (Cost) Amount column you notice an amount.
- Add further characteristics to the report, such as G/L Account and G/L Account (Origin) as well as Associated Source Document Type and Associated Source Document ID.
- Expenses which should have been cleared and realized still appear as Deferred Costs.
- Keep the report open
To verify the Expense Assignment in Project Management:
- In the Project Management work center go to the Invoice Preparation: Not invoiced Time and Expenses view.
- Find Project XYZ and press Go.
- In the OWL you see that there is nothing displayed in the Time and Expenses Not Assigned column.
- Just to be safe, click Edit Time and Expenses.
- All expenses appear here and are assigned to Sales Order items.
To verify the Expense Assignment in the Sales Accruals report:
- Add the Associated Sales Order and Item as well as Business Transaction characteristics to the report.
- Pull the Associated Source Document ID characteristic in front of the Business Transaction characteristic to see which transactions are displayed for which expense.
- You verify that for each expense in question an Expense Assignment to Sales Documents transaction exists. This means all expenses are correctly assigned to a Sales Order item.
Even after the Revenue Recognition run these expenses stay deferred.
The expenses of the invoices were not picked up by the Revenue Recognition Run because they are marked as Deferred. This can be verified in Project Management:
- In the Project Management work center go to the Invoice Preparation: Not Invoiced Time and Expenses view.
- Find and select Project XYZ.
- Click Edit Time and Expenses Screen.
- In the Time and Expense Items table select one of the items.
- Then navigate to the Quantity and Expense Details sub-tab: Here you can see that the total quantity of this item appears as Quantity to be deferred.
If you need to recognize some or the whole quantity of the selected expense the respective quantity needs to be made available for Invoicing:
- Remain in the Quantity and Expense Details sub-tab.
- Then enter the quantity which you want to realize in the Quantity to be Invoiced field.
- Press Save and Close.
If an accrual method is assigned to the Sales Order item execute the Revenue Recognition run again. This time the expense associated with the sales order item will be recognized and realized (depending on the Accrual method logic).
Project expense not realized, assigned expense deferred cost of goods sold , KBA , SRD-FIN-COR , Cost & Revenue , Problem