Symptom
You have created a sales order of item type 'Product - delivery-based' with an external fulfillment for 900 ea of a given material.
The 3PL Purchase Order has been created, inbound and outbound deliveries as well as supplier invoice posted successfully for a partial delivery and partial invoice of 800 ea.
Since the accrual method of this sales order is 'Recognize at point of delivery', you ran a revenue recognition run, which as recognized the revenue and the cost of sales for the corresponding 800 ea.
You decide that this sales order will be fulfilled partially (e.g. due to stock shortage) and hence reduces the purchase order quantity to the already delivered quantity (800 ea). The purchase order gets finished and delivery completed. After that, you set a reason for rejection in the sales order item to cancel the pending 100 ea.
Once you execute revenue recognition again, the earned revenues amount and invoice quantity gets offset (-800 ea), which is not expected.
Environment
SAP Business ByDesign.
Reproducing the Issue
- Go to Cost and Revenue work center.
- Go to Revenue Recognition view.
- Open the concerned run.
- Go to Processed Successfully and check the related sales order.
You see that the earned revenues amount and invoice quantity were offset.
Cause
When setting a rejection reason in the sales order, it cancels the open quantity that is not delivered and respectively cancel the not invoiced quantity. In this case, the 800 ea were delivered, but not yet invoice. The customer invoice remains Not Released.
Since the accrual method is 'Recognize at point of delivery' and 800 are delivered, the revenue and the cost of sales are recognized. After that, the reason for rejection is set, however this action cancels the open quantity that is not delivered and respectively cancel the not invoiced quantity. In this case, the Invoice Process is not started and the 800 ea not invoiced, since the customer invoice is not released yet. Hence, upon a new revenue recognition you see the offset in the invoice quantity of -800 ea and in the earned revenues.
Resolution
You can release the customer invoice for the 800ea that were pending. This should set the invoice status to Finished in the sales order. Upon a new revenue recognition, the amounts shall be recognized.
Keywords
Revenue Recognition. Current Earned Revenues Amount. Current Earned Invoice Quantity. Sales Order. 3PL. External Fulfillment. , KBA , SRD-FIN-COR , Cost & Revenue , How To