3464079 - Revenue of Sales Order not Realised by Revenue Recognition Run but in the Customer Invoice Directly

• Sales order item XYX-XX with item type SEFL - Service- fixed price without actuals is fully delivered and invoiced (XYZ-XX represents a sales order item ID). 
• An event-based accrual method is assigned to the item (either Recognize at point of delivery or Recognize at point of invoice). 
• However, the revenue recognition run does not process the sales order item. Instead, the revenue is directly realised through the invoice of the service confirmation.

SAP Business ByDesign

1. In the Sales Orders work center go to the Sales Orders view and find sales order XYZ. 
2. Open the sales order and check the document flow.
3. You can see the service order. Access the service order to verify it confirms the full quantity. 

When using accrual method Recognize at point of delivery: 

    4. You execute the revenue recognition run. The run does not realise any revenue for the confirmed quantity. 

When using accrual method Recognize at point of invoice: 

1. In the sales order's document flow you can also see the customer invoice. 
2. Check the journal entry of the customer invoice: Its revenue has been credited to a Revenue account already. 

You expected the customer invoice to be posted to Deferred Revenue first. The revenue recognition run then is to clear the deferred revenue and to realise the revenue on the revenue account. 

Sales Order item XYZ-XX is of item type Service - fixed price without actuals. When working with this item type an actual service confirmation is not necessary. The created service confirmation is not referenced to the sales order item. The revenue is realised through the service confirmation and not through the sales order item. 

You'll notice the sales order item's Delivery and Invoice status has not started. 

In the Sales Document Items view, Accounting Data tab you notice no Incurred Costs or Invoiced Revenue is recorded. 

• When working with item type SEFL - Service - fixed price without actuals the service must be confirmed through the sales order item via the Complete Service Execution option (either on item or header level).
• This will trigger the service confirmation directly for the sales order item, deriving the service costs from the item's maintained labour resource and duration.
• The sales order item's delivery status has changed to Finished. 
• With the completion of the execution a sales order item invoice request is triggered. The resulting invoice will be posted to Deferred Revenue. 
• The invoice status of the sales order item is Finished.
• The revenue recognition run will process the sales order item to clear the deferred revenue and realise the invoiced value on the revenue account.
• In the Sales Document Items view, Accounting Data tab you can see values appearing in the Incurred Costs and Invoiced Revenue field. 

Services

sales order not processed by revenue recognition run, invoice revenue not deferred but directly realized , KBA , AP-ACC , Business ByDesign: Financial Accounting , Problem