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Revenue Recognition for Time and Expense

Former Member
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I created a project with contract type as time and material, I posted 2 hours on it which are reflects as COS but system is not able to calculate the recognized revenue for the same. All rates and cost are already maintained in system

Billing line item

Regards,

Nitesh Panchal

Accepted Solutions (1)

Accepted Solutions (1)

Feras_Al-Basha
Advisor
Advisor
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Hi Nitesh,

As you indicated, assuming that both cost and revenue are maintained I recommend first verifying that the revenue recognition did take place. To do so please navigate to the app 'display line items in general ledger.' Thereafter filter on your projects postings by using the filter on 'reference document type' equal to 'CATS' if you had posted time which should give you the cost postings. Also, make sure that the a separate JE has been created of 'reference business transaction type' TBBR that should reflect your debit to WIP (balance sheet) and credit to revenue adjustment (P&L). If these postings do indeed occur for your scenario/project when being viewed from the general ledger, then I recommend making sure that your semantic tags configuration for recognized revenue include the respective GL accounts - since the app 'event based revenue recognition - projects' is based on this mechanism.

Below please find a reference documentation on the concept:

Derivation of key figures:

https://help.sap.com/viewer/89d896ca9cd64318b1667df5ec00e4b2/1905.500/en-US/abe963495b29415289023ee5...

Semantic tags & event-based revenue recognition:

https://help.sap.com/viewer/0fa84c9d9c634132b7c4abb9ffdd8f06/1905.500/en-US/0652186231414216a044d175...

Hope this helps,

Thank you,

Feras

Former Member
0 Kudos

Hi Feras,

Thanks for your reply but when i posted cost and checked on app 'display line items in general ledger' there are no posting apart from the cost (attached is the image from GL account posting)

Regards,

Nitesh Panchal

Former Member
0 Kudos

anyone can update on this?

Feras_Al-Basha
Advisor
Advisor
0 Kudos

Hi Nitesh,

It is difficult for me to provide you with further directions in the absence of complete visibility over what you are trying to accomplish and the steps you have taken. My understanding so far is that we have simple T&M scenario where a consultant books time using the time-sheet app and the issue is that we are not able to see the associated revenue? Is this the case? If so could you please make sure all steps in scope items J11, J12 & J14 are followed?

Hope this helps,

Thanks,

Feras

ana_goncalves
Product and Topic Expert
Product and Topic Expert
0 Kudos

Hi Nitesh,

As ferasbasha3 mentioned, we would need more details in order to provide concrete feedback. In any case, here are some ideas:

How have you set your timesheet profile? Is approval required? If yes, keep in mind that revenue recognition will only be triggered when the time entry is approved by the project manager in Fiori App "My Inbox".

Also, are both Revenue Adjustment (44401100) and WIP Accrud Revenue - Time G/L accounts (13711100) maintained in Financial Statement Version YPS2 (see app "Manage Financial Statement Versions")? If not, please maintain them.

Kind regards,

Ana

Former Member
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Hi Ana and Feras,

The cost has been posted through direct activity allocation app and it shows as COS on GL account (screenshot available in my second reply) I have checked the Financial statement version YPS2 and all accounts are maintained there revenue adjustment, WIP accrued revenue and Time GL accounts.

However, with the same process (i.e. booking cost through direct activity allocation) for fixed price contract I am getting correct value in Revenue recognition, this issue only comes with Time and Expense type of contracts and Period billing contract

Regards,

Nitesh Panchal

ana_goncalves
Product and Topic Expert
Product and Topic Expert
0 Kudos

Hi Nitesh,

Although I'm not sure why you're using Direct Activity Allocation for time posting (as we would typically use Manage My Timesheet), revenue recognition should still be triggered.

To ensure that revenue recognition works correctly when using activity allocation, among other things, you need to verify whether

- The configuration of the account to be posted to is correct

- Planned cost should not be 0 (depending on the RA key)

- Service price should not be 0 (depending on the RA key)

- No other error occurs during posting

...

If you're still facing this issue, I would advise you to create an incident for component CO-PC-OBJ-EBR.

Kind regards,

Ana

Answers (1)

Answers (1)

ana_goncalves
Product and Topic Expert
Product and Topic Expert
0 Kudos

Hi Former Member,

We haven't received any feedback from you for a few weeks. If the feedback provided has been helpful, please mark a best answer. Otherwise, let us know whether you need further clarification.

Kind regards,

Ana