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Accrual method change

valerie_hour
Discoverer
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Hello,

I have a question regarding accrual method for customer contract items, in SAP By Design. 

In my settings, the default accrual method chosen is the linear method on exact days, for all customer contract items.

I have several customer contract items which are expired, their invoicing and fullfilment are finished, but are still in status "in process".

As a result, each month, until today, when revenue recognition run is launched, we have journal entries that are still posted for the contract items, because of the conversion exchange rate (I suppose). Therefore, the product recognized and reported are always evolving and my revenue is still not fully recognized until this day.

So, to avoid these journal entries, I want to change the method to "Reverse reversal and accruals" so that the revenue is fully recognized and the item, skipped for future revenue recognition runs.

The issue is that, I have a lot of customer contract items to work on. Therefore, I would like to know if, from a technical point of view, we could modify the accrual method object and value, using a specific flow.

And if not, what other action could I do to have my revenue fully recognized in this case?

I hope this is clear.

Thank you and best regards.

Valerie
SAP Business ByDesign FIN (Finance) 

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Answers (1)

Answers (1)

caroline_lost
Advisor
Advisor
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Hi Valerie,

for a contract item to no longer be considered for revenue recognition it must be finished for invoicing and delivery and the end date must be reached.
Can you check if the Final Invoicing or delivery date is set for the respective contract items (Cost and Revenue > Sales Document Items > Customer Contract Items > Dates tab)

In the contract, can you double-check if the respective items' fulfilment status is set to finished?

The posting date of the revenue recognition run must be on or after the item's final invoicing or delivery date.

If this is the case, (end date reached, Final delivery and invoicing date set, revenue recognition run posting date on/after final invoicing or delivery date) then it might be worth sending on an incident to support to check why the item is still considered by the revenue recognition run.

Thanks and kind regards,

Caroline