3662369 - error "change of item category is not possible due to assigned WBS element" when processing return orders in SAP S/4HANA Cloud Public Edition

• When processing a return order linked to a sales order with a WBS element, the system does not allow changing the item category from the default item category to RNVN (Returns Item NORM FoC).
• The system displays the error message: "Change of item category is not possible due to assigned WBS element."
• This occurs even when the return order is based on a free-of-charge exchange scenario.

SAP S/4HANA Cloud Public Edition

1. Open the Fiori app: Manage Customer Returns - Version 2.
2. Create a return order based on an existing sales order. Ensure the original sales order item has a WBS element assigned.
3. Attempt to change the item category from the default item category to RNVN (Returns Item NORM FoC).
4. Try to save the return order.
   • System displays the error: "Change of item category is not possible due to assigned WBS element."
5. Proceed with the return order using the default item category.
6. Save the return order and create a return delivery.
7. Post goods receipt and create a credit memo request followed by a billing document.
8. Open the "Display Journal Entries" app and search for the billing document number.
   • Observe that a Sales Discount G/L posting is created, which is not expected for a free-of-charge return.

• The restriction on changing the item category from the default to RNVN when a WBS element is assigned is standard system behavior in SAP S/4HANA Cloud Public Edition.
• This restriction ensures accounting integrity in project-based scenarios and prevents inconsistencies in revenue recognition.
• The item category RNVN is not included in the predefined allow-list for WBS-related sales items, and this configuration cannot be modified in the Public Cloud Edition.

Workarounds

1. Use the standard item category (e.g., RENV) for return orders that reference sales orders with WBS elements.
   • Note: This will trigger a Sales Discount G/L posting during billing, as per standard pricing behavior in SAP S/4HANA Cloud.
2. To avoid the sales discount posting:
   • Create the return order without referencing the original sales order that contains the WBS element.
   • This approach avoids linking the WBS element and thereby bypasses the item category restriction and related postings.
3. If usage of item category RNVN with WBS elements is required, SAP recommends the following options:
   • Submit a feature request via the SAP Customer Influence Portal.

• How to Restrict WBS Element Usage in Sales Order Based on Project in SAP S/4HANA Public Cloud Community Answer

SAP S/4HANA Cloud, Public Cloud, return order, item category, WBS element, RNVN, Sales Discount, G/L posting, error message, revenue recognition, Manage Customer Returns, billing, credit memo. , KBA , SD-SLS-RE-2CL , Returns (Public Cloud) , Problem