3382178 - Not invoiced Costs are Realised for Sales Order Item with Accrual Method Recognize at point of Invoice

• You assign accrual method 202-Recognize at point of invoice to the project based sales order item XYZ-XX.
• You do not create a customer invoice for any of the incurred costs. 
• You execute the revenue recognition run and notice that the run realised the incurred costs. As no customer invoice exists you expect all costs of sales to remain deferred.  

SAP Business ByDesign

1. Go to the Cost and Revenue workcenter and here to the Sales Document Items view.
2. Select the item XYZ-XX.
3. Navigate to the Accounting Data sub-tab.
4. You verify that accrual Method: 202 - Recognize at point of invoice is assigned to the item. 
5. Now press Reports and choose Sales Document - Line items for project.
6. In the rows maintain G/L account, G/L account (origin), Business Transaction. 
7. You verify that no customer invoice  business transaction exists for the project. 
8. You notice that the revenue recognition run realised the incurred costs. 

The costs that got realised are marked as written off. 

You might have marked the respective service as not billable in the project task. Or the incurred quantity/amount was maintained as to be written off in the Edit Time and Expenses screen.

When project expenses are written off they are considered as not invoice relevant. Therefore, they get realised according to their incurrence date rather than on the date when they get assigned to a project invoice request/ the customer project invoice. 

This is expected system behaviour. 
If you need all costs deferred until a customer invoice is created for the project, do not mark any services as not billable in the project or as written off in the Edit Time and Expenses screen. 

Rather keep all expenses billable and write off the non-billable expenses when creating the project invoice request. 

Recognize at point of invoice, project costs realised , KBA , SRD-FIN-COR , Cost & Revenue , Problem