You create Supplier Invoice ABC with items associated with Customer Project tasks DEF-XX, DEF-YY (ABC represents the Supplier Invoice ID; DEF represents the Project ID; XX and YY represent the Project Task IDs).
For these items, say ABC-A and ABC-B (ABC-A/B represent the Supplier Invoice Item IDs),
- you selected the Distribute Additional Costs Proportionally option or
- you maintained an Overall Net Discount, Surcharge or Reduction or
- you maintained a Net Discount, Surcharge or Reduction on Item level.
After you verified that all Project Expenses are assigned to Sales Order Items. You therfore expect that
- all related expenses are immediately realised on the expense account (if no Accrual Method is assigned to the Sales Order item)
- all related expenses get realised with the Revenue Recognition run (if an Accrual Method is assigned to the Sales Order item).
Instead, you notice
- an unassigned, deferred Cost of Goods sold amount associated with these Supplier Invoice items (Sales Order Item without Accrual method).
- a warning in the Revenue Recognition run application log reporting that 'Costs without assignment to a sales order exists for project DEF' (Sales Order Item with Accrual Method. You then check the Sales Accurals report and notice the unassigned, deferred Cost of Goods sold amount associated with these Supplier Invoice items.
SAP Business ByDesign
Reproducing the Issue
Pre Condition: First verify that all project expenses have been assigned to Sales Order items and that no unposted source documents connected with Project DEF exist:
To check the Sales Order Item assignment:
- In the Project Management work center go to the Invoice Preparation - Not Invoiced Time and Expenses view.
- In the OWL find Project DEF and verify that no number is displayed in the Time and Expenses Not Assigned.
Then, in the Source Documents view of the General Ledger ensure that there are no unposted source documents of type 555-
- In the Cost and Revenue workcenter go to the Go to Cost and Revenues work center.
- Reports view and select Sales Accruals report.
- Fill the selection criteria and Project XYZ and bring into rows the following, Associated Sales Order ID, G/L Account particularly
You will notice that the same amount which is posted with Supplier Invoice PQR shows here with Associated Sales Order ID as #
When a Supplier Invoice has got Distribution Items then this distribution amount is not sent to Project and further it will not be recognized in Financials with a Poject/Sales Order combination.
This is the current system behaviour.
The deferred amount, not assigned to a Sales Order will trigger a warning when runing the Revenue Recognition as: Costs Without Assignment to Sales order exists for Project XYZ.
Workaround would be to create Manual Journal Entry Voucher for this amount to clear it from Deferrals.
Sample Fields to fill in the Journal Entry Voucher
Type 00088 – Manual Entry for Sales Documents
Variant 633 – Man. Adjusting Entry for Sales Documents
G/L Account: Deferred Cost of Goods Sold; Amount; G/L Account (Org.); Project Task
G/L Account: Deferred Cost of Goods Sold; Amount; Sales Document; Sales Document Item; G/L Account (Org.); Project Task
KBA , SRD-FIN-COR , Cost & Revenue , How To