EBBR - Fixed Price Cost Based POC: Plan Cost is double what it should be

[Thijs__FLXS_]

Hi experts, 

I have a billing WBS assigned to Revenue Recognition Key SPFC - Fixed Price, Cost Based POC. It's fairly straightforward, I have 1 work package assigned and there is 1 Purchase Order with 1 Line against this work package. I have received 1 invoice for the total amount of the PO. 

The planned costs on the work package are exactly the same as the invoice amount. When I open the app 'Event-Based Revenue Recognition - Projects' and I look at the billing WBS both the Actual Cost & Recognized COS are the same and equal to the PO and I don't have any planned COS. 

However, when I simulate the revaluation and go to 'Explain Simulation' it is giving me the correct actual costs, but the plan costs (could be capitalised, POC relevant) is exactly double my actual costs (and the planned costs in the work package). So for the Revenue Recognition calculation it's saying it can only recognize 50% of the revenue instead of the 100% it should take. 

However I cannot find these plan costs anywhere in the system. There is no accrual posting, I don't see any other plan costs against the work package or billing WBS. The project cost report app is showing me expected costs as well. So I don't understand why the calculation is suddenly doubling my plan cost amount. 

I couldn't find any SAP notes when I searched, so I hope maybe somewhere here has already had this happen before?

Kind regards,

[HenrikeGrtecke]

forwarded to experts

[volkmar_zahn · Accepted solution]

Hi Thijs,

Unfortunately I have to agree with Owen that best would be to have system access. The plan category REVREC01 is more a technical plan category for the purpose of revenue recognition. It is updated when you run the revaluation in EBRR and allows fetching data in a faster way in the monitor app for display reasons. Therefore the fact that it is showing the double revenue is not the route cause.

I have seen the issue before in S/4HANA On Premise, and there it was addressed as a fix with note: 3441208 - Wrong plan cost/revenue from acdocp for event based revenue recognition.

However, I understand that you work in S/4HANA Cloud Public Edition, and there this should not exist as root cause.

Could you please open an incident.

Thank you and best regards, Volkmar Zahn S/4HANA Product Management

[Thijs__FLXS_ · Accepted solution]

Thank you Volkmar, a ticket has been logged for this.

[OwenLiu]

Hello,

It's not easy to tell what could be the reason without system access.

You can check the planned cost value in Plan Customer Project app.

If it's doubled it should be relevant with the planning part of the project.

You can check the explaination:

Calculate Cost and Revenue | SAP Help Portal

Best Regards,
Owen

[Thijs__FLXS_]

Hi Owen,

Thank you for your reply, but the problem is, everywhere I look I see the amount I would expect, the 12.986. So also for the project in the Plan Customer Projects app. We have checked accruals, plan data, the project itself (plan customer projects), all postings, different plan versions. Everything seems to be correct, yet the calculation is still using double the amount. 

Regards,

Thijs

[OwenLiu]

Hi Thijs, you can also check the plan data on item level to find out some hints. There should be plan/actual report for the project.

[Thijs__FLXS_]

Hi Owen,

I did have a look at the project cost report already earlier and also here I did not see anything out of the ordinary:

Project Cost Report\

In the above report, the plan categories used are 'Revenue Recognition Snapshot (REVREC01)' and 'CPM Baseline (PRO01)', but all plan categories give the same result. 

However I did now also check the report 'Projects - Plan/Actual' and the plan category 'Revenue Recognition Snapshot (REVREC01)' gives the following:

Projects - Plan/Actual

Meaning that on the billing WBS there is plan data for the revenue provision and on this WBS we see a total actual/plan variation of -25.973,96 which does correspond exactly with the amount SAP is using to calculate the total planned costs. So potentially this could be related. However, I don't understand where this is coming from if in all other locations I can't seem to find these planned cost. The Project Cost Report app for example doesn't show me these planned costs even though I have plan version REVREC01 selected. 

Do you know where else I can/need to look?

Regards,

Thijs