SAP Knowledge Base Article - Public

3218835 - Credit memo generated accrued revenue with revenue recognition closing run

Symptom

You have service contract scenario which trigger event-based revenue recognition postings.
Initially, you posted invoice according to billing plan. The recognition posting was recognized correctly as deferred revenue.
Afterwards, you posted credit memo (not in the billing plan). You expect the deferred revenue would be deduced. However, it generated accrued revenue instead.

Environment

SAP S/4HANA Cloud

Reproducing the Issue

  • Post credit memo to service contract item.
  • Run revenue recognition for the service contract item.
  • Check the generated revenue recognition journal entry.

Cause

The credit memo isn't a part of the billing plan in the service contract. The billing plan is the basis of the calculation of the revenues in the period. The revenue recognition closing run won't cancel the deferred revenues. The revenues will be accrued for the first period. The credit memo will be taken into account at the end of the periodic service when the service contract is 'Technical completed'.

Resolution

It is standard system design.

Keywords

credit memo, revenue recognition, billing plan, invoice, deferred, accrued, closing run, CCS, service, contract, item. , KBA , CO-PC-OBJ-EBR , Event-Based Revenue Recognition , Problem

Product

SAP S/4HANA Cloud all versions