3697242 - Error "Item XX: The specified service organization (project) &1 doesn't exist." when releasing a project item in a solution order - SAP S/4HANA Cloud Public Edition

A project is created through a solution order and then change the project manager in the project. The change is transmitted to the solution order via backward orchestration. As the updated service organization (project) is not existing, the status of the corresponding project item changes to "In Process". Even though the project manager is corrected, the following error displays when trying to release the project item again.
Item XX: The specified service organization (project) &1 doesn't exist.

SAP S/4HANA Cloud Public Edition

1. Release a project item in a solution order.
2. Change the project manager in the newly created project.
3. The status of corresponding project item changes to "In Process" due to the updated service organization (project) is not existing.
4. Correct the service organization (project), cost center and profit center and release the item again.
5. Observe the error message.

Once the "Project Manager" is updated on the project, a backward orchestration will be triggered to synchronize the solution order. Accounting info redetermination will occur on the project manager update. Service organization is determined based on the project manager's work agreement's cost center. The classification of the project manager's service organization should be "Project Delivery" or "Project Delivery and Resource". If the service organization classification is "Resource", an error will occur.

As a workaround, it's recommended to change the respective and relevant service organization's classification to "Project Delivery" or "Project Delivery and Resource" to avoid this error. Otherwise, if not changing the classification, project managers assigned to service orgs which are "delivery org" marked should be used.

CRM_ORDERADM_I, 544, service organization, project, project manager, solution order, orchestration, doesn't exist, work agreement, Project Delivery, Project Delivery and Resource , KBA , CRM-S4-SOL-SLO , S4CRM: Solution Order , CRM-S4-BTX-2CL , S4CRM: Business Transaction Framework (Public Cloud) , Problem