3250787 - Customer Return Not Considered By Revenue Recognition Run

• You create a customer return ABC for sales order item XYZ-XX (ABC represents the customer return ID, XYZ-XX represents the sales order item ID). The respective customer return item ABC-AA uses the same accrual method, for example 1 - Recognize at point of invoice, as the associated sales order item XYZ-XX. 
• You create a customer credit memo for the customer return. 
• You expect the revenue recognition run to credit the expense account to clear the expense of the returned item, as well as debit the revenue account to reduce the revenue amount. 
• However, the revenue recognition run does not process the return. The returned expense and revenue remain deferred. 

SAP Business ByDesign

1. In the Cost and Revenue work center go to the Sales Document Items view. 
2. Select Customer Return Items. 
3. Find customer return item ABC-AA. 
4. Go to the Dates tab: the Final Delivery or Invoice Date is set. 
5. Go to the Accounting Data tab. 
6. You notice that the Leading Sales Document Item is sales order item XYZ-XX and Accrual Method 1-Recognize at point of invoice is assigned.

As the return is completed (delivered and invoiced) you expect the revenue recognition run to clear the returned expense and credit memo revenue. You check the revenue recognition run application log for sales order item XYZ-XX and notice no postings at all.

Customer return ABC was created and completed after the connected sales order item XYZ-XX has been already completed for Revenue Recognition:

1. In the Sales Document Items view select Sales Order Items. 
2. Find sales order item XYZ-XX.
3. Go to the Accounting Data tab. 
4. You notice that the Revenue Fully Recognized indicator is set. 

Once a sales document item is completed for revenue recognition it is no longer considered by the revenue recognition run.

Reset the Revenue Fully Recognized indicator:

1. In the Sales Document Items view select Sales Order Items.
2. Find sales order item XYZ-XX.
3. Press Reassign and select Accrual Method.
4. Select Accrual Method 3-Continue to defer and press OK. This will reset the Revenue fully recognized indicator. 
5. Again, press Reassign and select Accrual Method. 
6. Select the original accrual method, here, 1- Recognize at point of invoice. 

Execute the revenue recognition run again: This time the returned delivery and the credit memo amount will be cleared.

Note:

You can prevent this situation by not assigning an accrual method to customer return items: Either remove the respective setting in the Accrual Methods fine-tune activity. Or remove the accrual method assigned to the customer return item before it has been released. In this case the return delivery and the credit memo invoice will be realised on the Expense/Revenue account as soon as they got posted.

customer return not considered by revenue recognition run , KBA , SRD-FIN-COR , Cost & Revenue , Problem