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

SAP Error Message - Details

• 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.

Smart SAP Assistant

• What is the cause and solution for SAP error message KJ314 - Create a cost element for revenue in excess of billings ?

  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, you can take the following steps:
  
  
  Check Revenue Recognition Settings:
  
  Review the revenue recognition method configured for the project or order. Ensure that it aligns with your billing practices.
  Verify if the revenue recognition is set up correctly in the project or order settings.
  
  
  
  Review Billing and Revenue Entries:
  
  Check the billing documents and revenue entries to identify any discrepancies. Ensure that all billings have been recorded correctly.
  Look for any manual adjustments that may have been made and ensure they are valid.
  
  
  
  Create a Cost Element:
  
  If a cost element is indeed required, you will need to create it in the system. This can typically be done through the following steps:
  
  Go to the SAP Easy Access screen.
  Navigate to the transaction code KA01 (Create Cost Element).
  Enter the necessary details for the cost element, ensuring it is set up to handle revenue in excess of billings.
  Save the new cost element.
  
  
  
  
  
  Adjust Revenue Recognition:
  
  If the revenue recognition is incorrect, you may need to adjust it to align with the actual billings. This may involve reversing or adjusting previous entries.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team for specific configurations related to your organization's setup.
  
  
  
  Related Information:
  
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  KA01: Create Cost Element
  KAH1: Create Cost Element Group
  KSB1: Display Cost Centers
  CJI3: Project Actual Line Items
  
  
  
  SAP Notes: Check for any SAP Notes related to this error message for additional guidance or patches that may address known issues.
  
  
  Training and Support: If you are unsure about the steps or the implications of changes, consider reaching out to your SAP support team or attending training sessions on project accounting and revenue recognition in SAP.
  
  
  By following these steps, you should be able to resolve the KJ314 error and ensure that your revenue and billing processes are aligned correctly in SAP.