3546242 - Revenue Recognition in ETO (Engineer to Order) Scenario

With ETO scenario, inventory and product variances are posted to project, which will trigger revenue recognition postings.
However, production order costs (raw material consumption, internal hour confirmations, external services, overhead) are not considered with revenue recognition.
It's not possible to recognize revenue according to the costs posting in production order.

SAP S/4HANA Cloud Public Edition

This directs to the concept of non-valuated project stock. In the current public cloud offering, the project stock from production order GR stays as inventory, and the project costs are only recognized when the project stock is consumed by goods issue with outbound delivery, and consequently included in the POC for EBRR.

It's currently missing function. We would suggest to raise feature request according to KBA 2963059 - How to Submit Feature Requests for SAP S/4HANA Cloud Product

As a short-term solution, the EPPM team is building a report that will show project stock as costs for EPPM projects before the stock is consumed by goods issue. However, it is important to note that all financial reports still show the project stock as inventory value.

Check the Roadmap.

EBRR, TBRR, revenue recognition, ETO, engineer to order, cost, POC, recognize, outbound delivery, GR, GI, purchase order, confirmation, overhead. , KBA , CO-PC-OBJ-EBR-2CL , Event-Based Revenue Recognition (Public Cloud) , Problem

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