SAP Knowledge Base Article - Public

2946742 - Accrued Cost is Posted After Executing Revenue Recognition for Expense - fixed price without actuals


You create sales order AAA(AAA represents the ID of sales order). The accrual method for sales order AAA is 'Recognize at point of invoice'.

You create an invoice schedule in sales order AAA.

The product/service BBB(BBB represents the ID of product/service) in sales order AAA uses item type 'Expense - fixed price without actuals'.

The Request Date is a future date. You release and complete the execution. The Service Status becomes Released and Delivery Status becomes Finished.

You post the first customer invoice CCC(CCC represents the ID of the customer invoice). The Invoice Status in sales order AAA is In Process.

You execute revenue recognition DDD(DDD represents the ID of the revenue recognition run) during the accounting period when the invoice is posted.

After executing revenue recognition, you find that cost are accrued with invoice CCC's amount. You do not understand why the system posts the accrued cost.


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Reproducing the Issue

  1. Go to the Cost and Revenue work center.
  2. Go to the Revenue Recognition view.
  3. Select run ID DDD and click on Log Result.
  4. Navigate to the Postings tab.
  5. You find that the invoice amount also appears as accrued cost amount. 


Accrued cost happens when finally delivered is set to a future date and revenue fully recognized is not yet set for the sales order, indicating expected incoming cost. You can see in the Sales Document Items view that the Revenue Fully Recognized of sales order AAA has not been checked, and the Request Date is in the future.

As for why the invoice amount appears as cost amount, it’s because costs generated from expense reports are expected to be directly invoiced to the customer. So, the cost generated from an expense report equals the revenue for an expense report. In reverse, a customer invoice amount created for a sales order item of type Expense generates the same cost amount, which is accrued when no actual expense report exists.


Accrued cost will be reversed when revenue recognition is executed after final deliverey date.


Revenue Recognition, Accrued Cost, fixed price without actuals , KBA , SRD-FIN-COR , Cost & Revenue , Problem


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