3608027 - Allocation Amount In Revenue Recognition Run ABC Is Not As Expected According To Exchange Rates

Allocation Amount in Revenue Recognition Run ABC is not as expected according to Exchange Rates.

(ABC represents the Revenue Recognition Run ID)

SAP Business ByDesign

Please Note that to illustrate this scenario we will use hypothetical amounts and currencies.

1. Go to Cost and Revenue work center.
2. Click on Revenue Recognition view.
3. Open Run ID ABC and go to Processed Successfully tab.
4. In Advanced Information > PoC Based, Allocated Amount is 980.00 EUR.
5. It was expected for it to be similar to the Net Value column, 950.00 EUR.

This difference happens due to the sequence of events in which documents were created and changes in Exchange Rates.

Premises:

• Revenue Recognition Run ABC processes a Sales Order item DEF that belongs to a foreign account. Company currency is EUR and Transaction Currency is USD, hence Exchange Rates are relevant.
  (DEF represents the Sales Order ID)
• Sales Order DEF has a Revenue Accounting Contract (RAC) GHI assigned to it.
  (GHI represents the Revenue Accounting Contract ID)

Sequence of events:

1. Sales Order DEF was created with an amount of 1000.00 USD. In this timestamp, the existing Exchange Rate for currency pair USD-EUR was 0.98 EUR.
2. The Exchange Rate was changed to 0.95 EUR.
3. The amount of 1000.00 USD was fully invoiced, leading to 950.00 EUR Company Currency amount.
4. Revenue Recognition Run ABC was executed. It shows Net Amount: 950.00 EUR and Allocated Amount: 980.00 EUR

The Allocated Amount shown in Revenue Recognition Run derives from Revenue Accounting Contract GHI. The RAC is created once the Sales Order is released. 
At the time Sales Order ABC was released, Exchange Rate for currency pair USD-EUR was 0.98 EUR, reason why the Allocated Amount shows 980.00.

This is the expected system behavior.

revenue recognition, exchange rates, allocated amount , KBA , SRD-FIN-GL , General Ledger , How To