Customer Project general understanding

[rb2020]

Hi - I am exploring utilizing Customer Project and would like to gain a general understanding of its behavior and purpose.  I vaguely understand it is a project type that will allow both cost posting and revenue posting.  So a few clarifications will possibly jump start me, or any general documentation would as well.

1. Can one simply enter revenues against the project, treating it basically as an informational object (not an efficiency/automation tool), by posting sales orders against the WBS element?
   1. If so are there any special limiations to the materials that can be used - such as having to configure related costs to that material or the like?
2. To better utilize the functionality, am I to understand that it is possible to automate your billing to the customer in relation to the costs posted to that project?  What app or process is used to "push the button" and execute billings based on what has been posted to the project in the period?
   1. My initial assumption is costs post to the project in the same methodologies as any other project, such as journal entry, payable invoice, manual allocation, and direct activity allocation.  Is "Direct Activity Allocation" the only method of these that will then convert the postings to revenues?
   2. Depending on the type of posting, is there any way to have the revenue billings execute at a rate different than the cost postings?  So for example, I would want cost center 17052101 to allocate $50 of cost to the Customer Project.  However, then when billing, I want the customer to be billed $100 for that same activity/item/posting.

Thanks

[Feras_Al-Basha · Accepted solution]

Hi rb2020 ,

lucian.marian has provided you with great resources to explore.

I encourage you to first run and end-to-end scenario by referring to test scripts J11, J13, J12 and J14 in the respective order and thereafter you would have more clarity on your questions. For more quality answers it would be favorable to have the precise scenario at hand.

On a high-level, internal projects could be used as a cost collectors without revenue. Customer projects will contain revenue and the accounting for revenue depends on the scenario and event-based revenue recognition configuration. The sales orders for customer projects are automatically created when the billing information is maintained and a sales order of type (SO01) is created.

Thank you,

Feras

[Lucian]

Please check for your requirements the scope item Event-Based Revenue Recognition - Project-Based Services (1IL)

https://rapid.sap.com/bp/#/browse/scopeitems/1IL

This blog shows an example covering your scenario :

https://blogs.sap.com/2017/12/19/revenue-recognition-in-context-of-ifrs-15-with-sap-s4hana-cloud-mad...

Whitepaper describing the solution scope and supported scenarios with the Event-Based Revenue Recognition: Https://d.dam.sap.com/a/PnyxAl/S4HC_IFRS15_RefRecWhitepaper.pdf

A cookbook is available in the learning hub:

https://jam2.sapjam.com/groups/5gwxDPWQPRtOvMO8Xnd32Q/content?folder_id=UOsLEZxn5xaMVS0ggXY2tR