3639090 - Status Determination in Event-Based Revenue Recognition (EBRR) Scenarios

Status determination plays a critical role in Event-Based Revenue Recognition (EBRR).
When the system determines a status of Technically Completed (TECO), all the recognized revenue associated with the project or document is cleared.
This process varies depending on the specific scenario, such as customer projects, service documents, or sales orders. This document explains the determination logic for different cases.

SAP S/4HANA Cloud Public Edition

The different EBRR scenarios require distinct criteria to determine the TECO status.

1. Project Scenarios (Customer Projects or Enterprise Projects):

• The TECO status corresponds directly to the Project Status being set to "Completed."

2. Service Document Scenarios (Service Contracts or Service Orders):

• The TECO status is aligned with the Service Document Status, which is also set to "Completed."

3. Sales Order Scenarios:
Sales orders involve more nuanced criteria as there is no single 'completion' status field for determining the TECO state in EBRR scenarios. The determination is based on the fulfillment of specific conditions:

• The Sales Order Item is considered technically completed when:

  1. The order quantity has been fully delivered, goods issued, and invoiced.
  2. All related material documents and invoices have been transferred to Accounting.
  3. The latest posting date for these transactions occurs before the last day of the period during which re-evaluation or month-end close is executed.

• Quantitative Conditions for TECO (Sales Order Item Level):

  • Invoice Quantity:
    • Must be greater than or equal to the order quantity.
    • Must be equal to the goods movement quantity.
  • Adjustments:
    • Invoice quantity is reduced by any credit memo quantities linked to return orders.
    • Goods movement quantity is reduced by any goods receipt postings related to return deliveries.

• Special Considerations for BOM Scenarios:

  • In third and fourth BOM variants, goods movement quantities are not considered for TECO determination.
    This is because billing-relevant BOM items do not trigger goods movement postings.

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