Project Inovice

[Former Member]

Dear Experts

I have a question about "Project Invoice".　Please help me...

I'd like to put the cost for the target project using SIV.

But, it doesn't occur the journal of project invoice(The following step no.5).

Could you tell me the cause of this problem?

If the setting is not enough, please let me know.

*Operation Step

1. Creating a sales order with a new project

2. Start and release the project

3. Creating a supplier invoice

  WIP 1,000,000 / AP 1,100,000

  VAT    100,000 /

4. Creating a project invoice

5. Release a project invoice request

6. Release a customer invoice request

*Journal does not occur at No.5 step...

Warm Regards,

Ryota Ichida

[Former Member]

Hi Ryota,

If you are finish creating the project invoice then release it. The released project invoice request appears in the INVOICE REQUEST view of the customer invoicing work center, where a customer invoice can be created.

Journal Entry will not be created for released invoice request

Journal Entry gets created if the follow up customer invoice is posted successfully, Check the document flow.

Thanks

Lokesh Sharma

[Former Member]

Hi Lokesh,

Thank you for you advice.

But, I have already released the project invoice...

And, In case of the expense report, it occurs the following journal entry.

In case of SIV, why does not occur journal when you create a Project Invoice?

Expense Report

WIP 1,000,000 / AP for Employee 1,000,000

Project Invoice

Expense 1,000,000 / WIP 1,000,000

Customer Invoice

AR  1,100,000 / Sales 1,000,000

                      / VAT     100,000

Warm Regards,

Ryota Ichida

[Former Member]

Hi Ryota,

I don`t understand what you expect. What kind of journal entry do you expect by realeasing project invoice request or customer invoice regarding SIV? Your SIV is already booked in step 3?

Do you use revenue recognition? I`m asking because in your journal entries for costs there is a WIP account used...you you search for a journal entry that realize you costs and revenues?

Best Regards,

Andreas

[Former Member]

Hi Andreas,

I’d like to recognize SIV as the cost of the project.

For example : Order the work to subcontractor

In that case, when I released SIV, I don't want to add the cost of project yet.

- Release SIV -> Not cost of the project (=Work in progress)

- Release Project invoice -> Cost of the project

Warm Regards,

Ryota Ichida

[Former Member]

Ok, now I understand your requirement. If you want to automate this process, you have to activate project base revenue recognition in system.

In this case all project specific costs (SIV too) will booked on WIP account. The right accrual method for your case is "Recognize at Point of Invoice":

http://help.sap.com/saphelp_byd1502/en/KTP/Software-Components/01200615320100003379/SAP_BBD/Print_Fi...

See documentation from page 407 for more information.

Best Regards,

Andreas

[Former Member]

Dear Andreas,

Thank you for your advice

I appreciate your kindness. I will see the document and try it.

Warm Regards,

Ryota Ichida

[Former Member]

Dear Andreas,

I have an additional question.

There are five options below in the accrual method.

But, I think that there is no appropriate option for my requirement.

Is it possible to create a new one by myself?

201 - Recognize at point of delivery

202 - Recognize at point of invoice

203 - Continue to defer

204 - Reverse deferrals and accruals

207 - Recognize based on manual amounts

I tried to do it using the option you suggested.

When I released SIV, it happened.

But, I'd like to recognize it, when I release "Project Invoice".

Warm Regards,

Ryota Ichida

[Former Member]

Hi Ryota,

to recognize costs and revenues you have to do a revenue recognition run for the project in Work Center Costs and Revenues.

If you do so ByD will recognize your costs in period of your customer invoice (beacause of the accrual method 202)

Direct recognition by realeasing the invoice is not supported (you always need a revenue recognition run) but from financial perspective you only need costs in same period like revenues.

Best Regards,

Andreas