SAP Knowledge Base Article - Public

3692496 - Variance in planned cost display in Event-Based Revenue Recognition - Projects for key SPFC in SAP S/4HANA Cloud Public Edition

Symptom

  • The "Event-Based Revenue Recognition - Projects" application displays the correct planned cost amount when actual costs is equal or greater than planned costs.
  • When planned costs are higher than actual costs, the displayed planned cost amount shows a variance.

Environment

SAP S/4HANA Cloud Public Edition

Reproducing the Issue

  1. Create a project in the "Create customer projects" application. Set cost rates for actual and plan differently.
  2. Create a WBS element with planned hours for a role. Initially, set planned hours to a value (such as 1) and then increase them (e.g. 10 hours).
  3. Post one hour of cost to the project against the WBS element.
  4. Execute the revenue recognition process in the "Event-Based Revenue Recognition - Projects" application before and after the planned hours change.

Cause

  • Planned costs calculation includes Dynamic EAC for strategy 306.
  • The difference arises from the Dynamic EAC formula used in SPFC strategy 306 during period-end closing.
  • Dynamic EAC is calculated as follows: (actual cost rate × posted hours) + (plan cost rate × ETC hours).

Resolution

  1. Review the calculations for the dynamic EAC formula used in SPFC strategy 306.
  2. Verify the currency conversion rates applied during the calculation process.
  3. Refer to the following resources for further insights into how Recognition Key SPFC operates:

See Also

Community: SAP S/4HANA Cloud, Public Edition for Professional Services: The dynamic EAC in cost-based POC fixed-price project.

KBA 3547953 - How Event-Based Revenue Recognition (EBRR) calculates realized revenue in cases of cost-based POC (Percentage of Completion).

Keywords

event-based revenue recognition, planned cost variance, dynamic EAC, SPFC strategy 306, USD to BBD conversion, fixed-price project, cost-based POC, revenue recognition discrepancy, planned cost calculation, FX rate, SAP S/4HANA Cloud , KBA , CO-PC-OBJ-EBR-2CL , Event-Based Revenue Recognition (Public Cloud) , Problem

Product

SAP S/4HANA Cloud Public Edition all versions