3461143 - Plan Cost Incorrect in Revenue Recognition Run For Sales Order Item with Manual Estimated Cost Amount

• You create Sales Order item ABC-AA and assign a POC relevant accrual method, for example 102-Recognize Using Cost-to-Cost POC (ABC-AA represents the Sales Order item ID).
• The net value of the Sales Order item is maintained in a foreign currency FC and not in Company Currency CC.
• You maintain a manual value in Company Currency in the Estimated Costs field o of the Edit Percentage of Completion Screen. 
• You expect this manual value to appear as Planned Cost value in the Revenue Recognition run application log. However, the amount is different in the run. 

SAP Business ByDesign

1. In the Cost and Revenue work center go to the Sales Document Items view.
2. Find sales order item ABC-AA maintained in Forein Currency FC.  
3. Press Edit Manual Revenue Recognition Data and choose Percentage of Completion. 
4. Under Calculation Basis for calculated POC enter a Company Currency value in  the Estimated Costs field, for example 500,00 CC (Company Currency).
5. Go back to the Sales Document Items view and navigate to the Acounting Data sub-tab under Details. From here access the last revenue recognition run that processed the item. 
6. In the run go to the Processed Successfully tab, choose the Advanced Information and then POC-Based. 
7. Find item ABC-AA. 
8. You notice the Plan Cost column displays a different amount (for example: not 500,00 CC but 475 CC). 

For the two currencies FC and CC an exchange rate and the inverted exchange rate exist. However, on the posting date of the revenue recognition run the rates are not in  sync.

If the CC-FC and the FC-CC exchange rates are not in sync on the posting date of the run,  the Plan Cost value, used by the run to calculate the current POC, is different to the estimated costs maintained for the item:

Example: 
You execute the revenue recognition run for accounting period 010.YYYY (October YYYY) (YYYY represents a calendar year). 

On 31.10.YYYY the CC-FC exchange rate is 0,5 and the FC-CC exchange rate is 1,9.

The run calculates the manual estimated cost amount into transaction currency, i.e. 500,00 CC x 0,5  250,00 FC and back into company currency: 250,00 FC x 1,9= 475 CC. 

For the run to consider a Plan cost amount of 500,00 CC, the FC-CC exchange rate should be 2.

The system works as designed:

When a sales order item is not maintained in company currency:
To derive the Plan Cost value for the calculation of the sales order item's current POC, the estimated, manual costs, maintained in company currency CC, are recalculated into transaction currency FC and then back into company currency CC.

If you work with inverted exchange rates, ensure that both exchange rate directions, here FC-CC and CC-FC are in sync.  

The issue only occurs when a manual Estimated Cost amount is used for a sales order item.  If you maintain planned cost directly in the project (work, material, expenses tab) in company currency, these values will not be converted into transaction currency and back. 

If you only work with one exchange rate direction then this recalculation (From CC to FC and back to CC) does not occur.

3027668 - Calculated POC Does Not Consider Exchange Rate For Sales Order Item in Foreign Currency

Plan Cost wrong, revenue recognition, POC , KBA , SRD-FIN-COR , Cost & Revenue , Problem