You execute the Run Revenue Recognition - Service Documents app and get an unexpected value displayed for a service contract, although the life cycle status of the service contract has already been set to Completed.
SAP S/4HANA Cloud
When a service contract is released, it triggers the event-based revenue recognition. The revenue recognition is finalized when the service contract is technically completed.
The status technically completed is calculated automatically on-the-fly based on the posting status and billing status of all billing request lines. This status is only set when all the billing request lines have been transferred to Billing and posted, and the billing status of the service contract has been set to Fully Billed.
The system doesn’t use the life cycle status to control the event-based revenue recognition. This is because you might have a partially billed service contract with the life cycle status Completed for which the revenue recognition should still run in order to have a correct report.
Set the status of the service contract to Completed and update the service contract end date accordingly, so that all billing request lines are invoiced and posted.
For example, a service contract has a contract start on 2020.01.01 and contract end on 2021.01.01. The billing request lines for the period from 2020.01.01 to 2020.06.01 are all billed. Now you set the status to Completed, but don't update the service contract end date. From the perspective of the event-based revenue recognition, the invoiced billing request lines should be recognized as revenue, and the open billing request lines from 2020.07.01 to 2021.01.01 should still be recognized as receivables. The event-based revenue recognition is only cleared when you set the service contract to Completed and update the service contract end date to 2020.06.01, so that all billing request lines are invoiced and posted.
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