Revenue Recognition - Cost-Based Percentage of Completion Methods with different WBS

[PhooPyae23]

Dear Experts,

I created a revenue project and assigned a recognition key (EPMFC) in contract type. 

Eg. Project name - R.RPJ.1

Revenue Plan WBS - R.RPJ.11 .001 >> 1000 SGD

Cost Plan WBS - R.RPJ.12 .001 >> 700 SGD

We have uploaded the financial plan data into SAP. And also posted cost journal entries, opened the sales order and billing posted to accounting as well.

When we run the revenue recognition (with these two different WBS), we got the error and couldn't run successfully. The question is can we run the cost-based revenue recognition with different WBS? 

Note: When I ran with same WBS code, it was successfully completed and generate RR documents correctly.

It would be appreciated if you answer my question.

Best Regards,

Phoo

[OwenLiu]

Added Finance tag, please remove tag SAP S/4HANA Cloud Public Edition.

[HenrikeGrötecke]

forwarded to experts

[Janina_Igers · Accepted solution]

Hi Phoo

Thank you for your question. One possible reason might be the structure that you have maintained for the EPPM project. You can assign planned costs to one WBS element and planned revenue to another WBS element. Event-Based Revenue Recognition only considers the planned costs if the cost WBS element is assigned to a billing WBS element in the project structure, as can be seen in the following screenshot:

If the project structure looks like the one shown in the next screenshot, the costs are not considered, and an error is displayed during period-end closing.

I hope that helps.

Best regards,

Janina

[PhooPyae23 · Accepted solution]

Dear Janina, I am sorry for updating late. I have tested as per your guidance and it works. I really thanks for your kindly support.