3547953 - How Event-Based Revenue Recognition (EBRR) calculates realized revenue in cases of cost based POC (Percentage of Completion)

When projects involve multiple currencies, fluctuations in exchange rates can lead to variations in the recorded value of cost and calculated revenues by EBRR.

This note describes how EBRR calculates realized revenue utilizing the cost based POC method for professional service projects with plan source strategy 306. (as of 2508, additional plan sources can be selected via configuration)

The example below is based on the previously available method (key SPFC). Starting with 2508, a new method (key SPFCFX) is available that calculates realized revenue using current FX rates. The percentage-of-completion (POC) calculation described below is identical for both methods when source 306 is used; the methods differ in the calculation of realized revenue and WIP.

EBRR recognizes revenue real time (1) with the corresponding cost posting and during period-end closing (2) which is usually performed at month or fiscal period end.

SAP S/4HANA Cloud Public Edition

KBA , CO-PC-OBJ-EBR-2CL , Event-Based Revenue Recognition (Public Cloud) , How To