SAP Knowledge Base Article - Public

3490815 - Abnormal large revenue recognized for cost based POC recognition keys object

Symptom

There's abnormal large revenue recognized for objects using cost based POC recognition key.

Environment

SAP S/4HANA Cloud

Cause

There's quite small planned cost(for example, 0.01) created with work packages at the start of project creation.
And the Planned costs for materials is apparently added later, however, the plan baseline is never updated.
Therefore Event Based Revenue Recognition(EBRR) used in real time the following calculation based on Cost POC:
Recognized revenue = actual costs / planned costs(0.01) * planned revenue, causing unexpected large revenue.

For example:

  • Setup a project with very small planned costs, e.g. 0.01 USD and normal/expected revenue (e.g. 100 000) and put in into execution
  • then adjust some work package with additional costs (e.g. 10 000)
  • starts posting actual costs (e.g. 500) which produces unexpected revenue in EBRR (500 / 0.01 * 100 000 ) = 5 000 000 000,
    instead of expected revenue: ( 500 / (10 000 + 0.01) * 100 000 = 4999.

 

Resolution

Kindly consider to adjust the baseline for planned costs – e.g. using app "Review Customer Projects".

Keywords

planned cost, planned revenue, cost based POC, SPFC, revenue recognition key, customer project, event based revenue recognition, large revenue. , KBA , CO-PC-OBJ-EBR-2CL , Event-Based Revenue Recognition (Public Cloud) , Problem

Product

SAP S/4HANA Cloud Public Edition all versions ; SAP S/4HANA Cloud all versions