Intercompany project accruals

[lauri90]

I  have an issue with project accounting and reporting from projects. The problem is related to large co-operation projects that are global in nature and use resources, expenses, and revenue intercompany e.g. project owned by Brazilian company code is contributed to by companies in US/Europe/Africa.

We are able to post time writing, travel expense costs, and services (which include markup for travel expenses) for intercompany. 

Where we have a problem is the accruals & deferrals of cost/revenue from the supplying companies. It is not supported by SAP to post accruals in the supplying companies towards an intercompany project. Revenue recognition in SAP only posts on the project in the company code which owns the project.

This means we are unable to post accruals or deferrals across the companies to the global projects which results to not being able to show correct numbers in reporting for contributions per company to the global projects and the total margins after eliminating internal costs with internal revenue. Any suggestions for this issue?

[Chuma]

Hello @lauri90 

Thank you for sharing your question

In SAP S/4HANA Cloud Public Edition, intercompany accruals and deferrals for projects are not supported in supplying company codes. Revenue recognition occurs solely within the project-owning entity, which limits cross-company margin visibility.

Workarounds include manual adjustments during period-end close and using SAP Group Reporting or SAC for consolidated reporting.

Let me know if you need further support

With kind regards

Chuma

[lauri90]

thanks!