3526364 - Revenue Recognition Run - Costs or Revenues Not Recognized Correctly After Accrual Method Change to Event Based Accrual Method

After you change the accrual method of sales order item XYZ-XX* from Recognize based on Manual amounts to an event-based accrual method, such as Recognize at point of Invoice or Recognize at point of delivery, the revenue recognition run does not correctly recognize/realize the incurred costs/ invoiced revenue:

For example,

• Previously realized costs might be deferred again,
• Revenue remains deferred rather than getting realized. 

*(XYZ-XX represents a sales order item ID)

SAP Business ByDesign

1. In the Cost and Revenue work center go the Sales Document Items view.
2. Find item XYZ-XX. 
3. In the Accounting Data tab you verify that an event-based accrual method is assigned. 
4. Choose Revenue Recognition and select Revenue Recognition history and check a revenue recognition run after the accrual method change. 
5. You notice, for example, the run has credited previously realises costs on the Expense account and deferred them again. Or, revenue that is to be realised remains deferred. 

• Before the event-based accrual method  got assigned, accrual method Recognize based on manual amounts was used.
• The manual revenue recognition data was not removed before assigning the event-based accrual method. 
• When there is still manual revenue recognition data, the run is not able to properly recognize and realize a sales document item's costs and revenue.

Change the accrual method back to Recognize based on manual amounts, remove the manual revenue recognition data and then reassign the event-based accrual method again: 

1. In the Cost and Revenue work center go to the Sales Document items view and find item XYZ-XX.
2. Choose Reassign  and select Accrual method. 
3. Reassign accrual method Recognize based on manual amount. 
4. Press Edit Manual Revenue Recognition Data and choose Recognized Costs and Revenues.
5. Remove the manual revenue and cost data for and save your changes. 
6. Reassign the event-based accrual method again.  

This time, the revenue recognition run will correctly recognize / realise all values. 

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