3644828 - Supplier Invoices and Goods Receipts Incorrectly Posted to Deferred Revenues Instead of Accrued Expenses in Financial Statements Report

• The Financial Statement Report shows an Amount in deferred Revenue, which should have been posted to Accrued Expenses as it was in previous periods.
• Supplier invoices and Goods Receipts are being posted to deferred Revenues instead of deferred Cost of Goods sold / Accrued Expenses.

SAP Business ByDesign

1. Navigate to the General Ledger Work Center.
2. Open the Reports - List view.
3. Select and open the Financial Statements Report.
4. Enter the relevant parameters and start the Report.
5. Scroll down to the Accruals and Deferred Revenues section.
   
   Observe that for periods XX (where XX is the period) the deferred Revenue is zero as expected, but in period YY (where YY is the new period), it incorrectly shows an amount of ZZZ,ZZ LC (where ZZZ,ZZ is the Local Currency amount). You expect that this amount is posted to Accrued Expenses as in periods XX. 

• The GL Account for deferred Costs was changed from Accrued Expenses to Deferred Revenues on a particular date in period YY.
• This Configuration change was made in the Business Configuration under Charts of Accounts, Financial Reporting Structures, Account Determination for Account Determination Profile ABC (where ABC is the Account Determination Profile).
• The change resulted in Supplier Invoices and Goods Receipts being incorrectly posted to the deferred Revenue Account instead of the Accrued Expenses Account.
• You can see this change in the Sales Accruals Report as well as in the Business Configuration Change History.

1. Open the Business Configuration Work Center.
2. Click the Overview view.
3. Navigate to the activity Charts of Accounts, Financial Reporting Structures, Account Determination.
4. Open the Sales Ledger and locate the Account Determination Profile ABC.
5. Under the Revenue Recognition - Deferrals subtab, identify the GL Account for Deferred Net Value (currently set to GL Account for Deferred Revenues).
6. Change the GL Account back to Accrued Expenses.
7. Save and Close.
8. Note: Past figures already posted to the incorrect GL Account will not auto-correct. These balances will need to be manually adjusted. Therefore run the respective Revenue Recognition Runs again to ensure the corrected Configuration is applied.

deferred revenue, accrued expenses, financial statement, GL account change, revenue recognition, deferred costs, account determination, financial reporting, incorrect posting, DCOGS, chart of accounts , KBA , SRD-FIN-COR , Cost & Revenue , Problem