3469552 - Revenue Recognition Run Does not Clear Deferred Project Expense Amount on Project Task Level

• A project expense, such as an internal time confirmation or a supplier invoice appears as Deferred Cost of Goods sold (CoGs), associated with sales order item XYZ-XX and Project task ABC-A (XYZ-XX represents a sales order item ID, ABC-A represents the project task associated with the sales order item). 
• The expense gets assigned to a different sales order item, for example XYX-YY. This sales order item is associated with project task ABC-B. 
• After the revenue recognition run you notice that the deferred cost of the expense is cleared on project and sales order item level.
• However, the cost is not cleared on project task level. 

SAP Business ByDesign

1. To review all relevant transactions open the Sales Documents - Line Items report, for example, from the Reports view of the Cost and Revenue work center. 

2. Use the attributes

- G/L account,
- Associated Source Document ID, 
- Business Transaction,
- Project Task,
- Associated Sales Order and Item.

3. Verify the original expense assignment posting, which debits the Deferred CoGs account on sales order item XYZ-XX and project task ABC-A. 

4. On the same account, notice another expense assignment posting to 
   - credit sales order item XYZ-XX and the original project task ABC-A,
   - debit the new sales order item XYZ-YY and the original project task ABC-A.

5. Last, notice the revenue recognition run posting, which
   - credits the Deferred CoGs account on the new sales order item XYZ-YY and the new project task ABC-B and
   - debits  the Expense account on the new sales order item XYZ-YY and the new project task ABC-B. 

This now causes a situation where, on the Deferred CoGs account
   - a debit value remains on project task ABC-A (from the original expense assignment) and
   - a credit value remains on the new project task ABC-B (from the revenue recognition posting). 

Instead, you expected the revenue recognition run to
   - credit the new sales order item XYZ-YY and original project task ABC-A and then
   - debit the the Expense account on the new sales order item XYZ-YY and the new project task ABC-B,
so that the costs are not only cleared on project and sales order item level but also on project task level. 

When a project expense gets re-assigned from one sales order item to another sales order item, the revenue recognition run can only clear the expense on sales order item and project level from the Deferred CoGs account.*

*Note: if no accrual method is assigned to any of the sales order items, then the expense is fully cleared on project, sales order item and project task level.

To clear the deferred cost on project task level, create a journal entry voucher of type 00088 - Manual Entry for Sales Documents, using screen variant 633 - Man. Adjusting Entry for Sales Documents:

On the Deferred CoGs account 
- credit the expense amount on the original project task ABC-A,
- debit  the expense amount on the new project task ABC-B.

2611112 - Incurred Costs on Customer Sales Project Realized on the Wrong Project Task

deferred CoGs not cleared, project task, expense assignment, project, sales order item , KBA , SRD-FIN-COR , Cost & Revenue , Problem