3750687 - App 'Event Based Revenue Recognition - Sales Orders' posts unexpected journal entries

Customers using Event-Based Revenue Recognition with IFRS 15 bundling may observe that following the 2602.1 update, accrued or deferred revenue balances in the IFRS-15-enabled ledger are reversed or cleared for objects that carry a "No Revenue Recognition" key (for example, SFSN and NONREV).

SAP S/4HANA Cloud Public Edition

Prior to the 2602.1 update, items with a "No Revenue Recognition" key were included in the bundle's revenue allocation calculation alongside regular revenue-bearing items. When the period-end closing run (PECRUN) processed the IFRS 15 ledger, it computed a revenue allocation for these items. While this was consistent with how the system normally processed the available data, it was not aligned with the intended design.

The system has been updated so that items with a "No Revenue Recognition" key are treated as non-existing within a bundle from the perspective of Event-Based Revenue Recognition:

• They are excluded from the bundle's revenue allocation calculation, and their Standalone Selling Price (SSP) is not considered when distributing the transaction price across the remaining bundled items.
• No accrual, deferral, or adjustment postings will be created for these items in any future period-end closing run.

The reversal of previously posted accrued or deferred revenue balances is the direct and expected consequence of this update. These balances did not represent a genuine IFRS 15 liability or asset, and their removal restores the correct accounting position. No further action is required.

Additional Information
Items with a "No Revenue Recognition" key are by design not subject to IFRS 15 revenue recognition processing because they do not create performance obligations (POBs), and no real-time posting to the IFRS 15 ledger is generated at time of billing. When part of a bundle, the intended behaviour is that these items are fully excluded from the Event-Based Revenue Recognition allocation and closing engine. The update aligns the system's handling with this design intent.

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