3588365 - Usage of Advanced Foreign Currency Valuation in Professional Services Projects for WIP adjustment

Professional Services customers, particularly those in regions with significant currency volatility, often establish projects where the project currency is different from the company code currency. Additionally, a second use case for T&E arises when there is a difference between the company code currency and the group currency. Both scenarios can pose challenges since converting the project currency (which is reflected in EBRR journal entries as transaction currency) to the company code and group currency is dependent on the exchange rate type M, using the creation date tied to the project's billing Work Breakdown Structure (WBS) as the conversion date.

For extensive Professional Services projects, there is a need to periodically reassess the WIP/ accrued revenue of these projects to account for potential currency gains or losses due to fluctuations in exchange rates.

SAP S/4HANA Cloud Public Edition

KBA , FI-GL-GL-G-2CL , Closing Operations / Period-End (Public Cloud) , How To