Improved Percentage of Completion Method Calculation
Here you can see a comparison table of maintained costs and revenue data (for example related to revenue recognition) where a comparison is made between the ‘0L (Leading ledger)’ and the ‘2L (Non‑leading ledger)’ ledgers. What is included here and what the table tries to illustrate is the use of the percentage of completion (POC) method for recognizing revenue and costs over the duration of a long-term project or contract.
Note
The fact that planned costs and revenue can be calculated for unplanned items in a service order results in a optimized POC calculation if these unplanned items are indeed present in the service order.
An Example
Starting with SAP S/4HANA Cloud Private Edition 2025, the unplanned item in the service order shows the planned cost and revenue data for the ongoing and the baseline data set.
As with other items, the baseline data is written on the first release of the item and can be updated by the Update Baseline button.
Note
Since release 2025, if an unplanned item is added to the service confirmation, saved, and then deleted while the status is Open, it will also be removed from the corresponding service order. This was not supported before release 2025.
Summary
- Starting with SAP S/4HANA Cloud Private Edition 2025, unplanned items in a service order are pricing-relevant, which means that planned cost and revenue can be calculated for unplanned items in a service order.
- Because of this, unplanned items are now considered in the POC method.
- The percentage of completion (POC) method, especially in the context of SAP's Event-Based Revenue Recognition (EBRR), is an accounting technique used to recognize revenue and costs over the duration of a long-term project or contract.