SAP Knowledge Base Article - Public

3095841 - IFRS 15 - Completed Customer Contract Item Still Considered For Revenue Recognition


  • The Revenue Accounting Contract (IFRS15) functionality is active for your company's set of books. 
  • You create a Customer Contract in a foreign currency.
  • The contract contains fix-price contract items for which you assign a straight-line accrual method, such as 303 - Straight-line – even periods.
  • Some items of the contract have been completed: Their end date is reached, their fulfillment and invoicing status is finished.
  • You notice that the revenue recognition run revalues the realized revenue in accounting periods after the contract item's end date, according to the valid exchange rate. 


SAP Business ByDesign

Reproducing the Issue

  1. In the Sales Document Items view of the Cost and Revenue work center select Customer Contract Items.
  2. Find item ABC-XX (ABC-XX represents the contract item ID). 
  3. Go to the Dates tab and verify that the item's End date has been reached, say 31.12.2020, and that the Final Delivery and Invoice Date is set (for example 01.09.2020). 
  4. Navigate to the Accounting Data tab. 
  5. In the Revenues per Period table you notice Realized Revenue amounts in accounting periods after the item's end date, for example in period 001.2021 (January 2021) and period 002.2021 (February 2021). 


The customer contract item is associated with a Performance Obligation IDs of Revenue Accounting Contract (RAC) XYZ (XYZ represents the RAC ID).

Further Performance Obligation IDs exists for the RAC which are not yet completed, meaning their associated sales document items are not yet completed.

To verify this

  1. go to the Sales Document Items view in the Cost and Revenue work center. 
  2. Search for Revenue Accounting Contract ID XYZ in the search field to display all contract items associated with RAC XYZ. 
  3. You'll find item ABC-XX as well as item ABC-YY, another item of customer contract ABC. This contract item is still In Process. Therefore all POBs of Revenue Accounting Contract XYZ are still active. 

When the Revenue Accounting contract functionality is active for a set of books then the revenue recognition is no longer based on the sales document items but on the revenue accounting contracts and their POBs. The POBs stay relevant for revenue recognition until all sales document items associated with a revenue accounting contract are completed.

Exchange rate fluctuations will cause revaluations of a contract item's current earned revenue amount and produce contract liabilities (or assets) based on its invoiced amount and the POBs current allocated amount.


This is expected system behaviour.

A customer contract item associated with a POB of a RAC will be processed by the revenue recognition run until all POBs of the Revenue Accounting Contract are completed, even if the contract item is already completed.

Once all POBs of a RAC are completed, meaning when all sales document items associated with the RAC are completed, then the revenue recognition run will clear all contract liability, asset or unbilled receivable amounts that got posted due to exchange rate fluctuations after the end date of a contract item.


completed customer contract, realised revenue, exchange rate differences, RAC, POB, IFRS15 , KBA , ifrs15 , completed customer contract , realised revenue , SRD-FIN-COR , Cost & Revenue , Problem


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