How To Fix KJ314 - Create a cost element for revenue in excess of billings

KJ314 - Overview

• Message type: E = Error

• Message class: KJ - Cost Object Controlling for Make-to-Order Production

• Message number: 314

• Message text: Create a cost element for revenue in excess of billings

What causes this issue?

If you are using the POC method to perform results analysis, the system
computes the calculated revenue by multiplying the percentage of
completion by the planned revenue. If the calculated revenue exceeds the
actual revenue, the system creates revenue in excess of billings.
The revenue in excess of billings is written under a results analysis
cost element.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Create a results analysis cost element for the revenue in excess of
billings.
Go into Customizing and enter the results analysis cost element in the
results analysis version.

Error message extract from SAP system. Copyright SAP SE.

KJ314 - Details

• The SAP error message KJ314, "Create a cost element for revenue in excess of billings," typically occurs in the context of project accounting or internal orders when there is a discrepancy between the revenue recognized and the billings made. This error indicates that there is revenue that has been recognized in the system that exceeds the amount that has been billed to the customer, and SAP requires a cost element to account for this difference.
  
  Cause:
  
  
  Revenue Recognition: The system has recognized revenue for a project or order that is greater than the amount billed to the customer. This can happen due to various reasons, such as:
  
  Incorrect revenue recognition settings.
  Timing differences between revenue recognition and billing.
  Manual entries or adjustments that have not been properly accounted for.
  
  
  
  Missing Cost Element: The system requires a cost element to record the excess revenue, but it has not been defined in the system.
  
  
  
  Solution:
  To resolve the KJ314 error,