SAP Knowledge Base Article - Public

2940572 - Revenue Recognition Run Generates Redundant Debit and Credit Posting Lines for Deferred Revenue / Cost of Goods sold

Symptom

You execute the Revenue Recognition Run.

You notice that the run has debited and credited the same amounts with all the exact same accounting details on the Deferred Revenue Account or the Deferred Cost of Goods Sold Account for no apparent reason.

Environment

SAP Business ByDesign

Reproducing the Issue

  1. In the Cost and Revenue work center go to the Revenue Recognition view.
  2. Open the run in question. 
  3. Navigate to the Postings tab and here to the Journal Entries sub-tab. 
  4. You notice two posting lines, one debit, one credit with exactly the same amount. 
  5. Click the Journal Entry ID to open the Posting.
  6. You verify that both posting lines, on the Deferred Cost of Goods sold or the Deferred Revenue account (depending on what is to be recognized by the run) contain exactly the same information (no change of Project Task, Sales Document Item, Business partner, Profit center).

You wonder why these seemingly unnecessary postings have been made.

Cause

In your Solution Profile Profit Center Accounting is activated; But the set of books, selected for the Revenue Recognition Run, uses the Function of Expense reporting principle.
With the Function of Expense reporting principle in place it is not intended to derive Profit Center and Segments in the relevant Journal Entries.

But, as Profit Center Accounting is active, all Sales Document items do get automatically assigned to a profit center. For the connected Customer Invoices as well as Cost of Goods sold entries, however, the Profit Center cannot be derived (due to the Set of Books Reporting Principle).

Therefore, the Revenue Recognition run triggers a 'Profit Center reposting' and creates these two redundant posting lines.

Resolution

We are working on improving the Revenue Recognition posting logic when Profit Center Accounting is active in the Solution Profile but a Set of Books uses the Function of Expense Reporting Principle.

In the meantime, you can ignore these posting lines, provided you are certain that these postings really do not repost specific accounting information from one posting line to the other.

Or, you could switch the Reporting Principle of the used Set of Books to a principle which includes Profit Center reporting, for example 'Function of Expense, Profit Center/ Segment', if working with Profit Centers and Segments is an option for your Company.

Keywords

debit and credit postings, Revenue recognition run postings, Deferred Revenue, Deferred Cost of Goods sold , KBA , debit credit zero posting , revenue recognition zero posting , SRD-FIN-COR , Cost & Revenue , Problem

Product

SAP Business ByDesign all versions