Overview
With SAP S/4HANA Cloud Public Edition release 2608, Project Billing applies a standardized billing‑relevance check for project‑related journal entries. As part of this design, journal entries posted to G/L accounts with Cost Element Category 11 (Revenues) or 12 (Sales Deduction) are excluded from Project Billing processes.
This billing‑relevance logic is evaluated consistently across all Project Billing entry points, including the Manage Project Billing app and Project Billing APIs.
This blog explains the design principles behind this behavior, its release dependency, and the required adaptations to ensure billing continuity.
System Evaluation Logic
When a journal entry with a project reference is posted in Financial Accounting, Project Billing performs a billing‑relevance evaluation based on the assigned G/L account:
- For Billing‑relevant G/L accounts, postings proceed to Project Billing and can result in billing requests and billing documents.
- For G/L accounts with Cost Element Category 11 or 12, postings are identified and excluded from Project Billing. No billing requests or billing documents are created.
This ensures that only eligible project costs participate in downstream billing processes.
Release‑Dependent Behavior
Release 2602.3 (CFD3)
In release 2602.3 (CFD3), the billing‑relevance check is delivered via the feature toggle PROJ_BILLG_ACCOUNT_TYPE_CHECK (Project Billing Account Type Check)
When this feature toggle is enabled:
- Postings to G/L accounts with Cost Element Category 11 or 12 are excluded from Project Billing
- This behavior is expected and correct
- You can analyze the impact and adapt configuration before the standard rollout
If billable costs appear to be missing while the feature toggle is active, this restriction is the cause.
Release 2608 (Standard Behavior)
As of the 2608 standard release:
- The feature toggle is removed
- The billing‑relevance restriction becomes mandatory
- All tenants enforce the exclusion automatically
From this release onward, journal entries posted to G/L accounts with Cost Element Category 11 or 12 are no longer considered in Project Billing.
Example Scenario
A project‑related journal entry is posted with a valid project assignment, valid controlling objects, and a G/L account with Cost Element Category 11 (Revenues) or 12 (Sales Deduction)
Outcome:
The journal entry is posted successfully in Financial Accounting, and financial reporting remains correct. During Project Billing evaluation, the posting is excluded, and no billing request or billing document is created. This behavior is consistent and expected once the billing‑relevance restriction is active.
The diagram illustrates how journal entries posted to G/L account with cost element categories 11 (Revenues) or 12 (Sales Deduction) are identified by this evaluation and are systematically excluded, meaning they remain valid in Financial Accounting but do not participate in any billing process.
Required Adaptation
To ensure billing continuity, you must review and adapt G/L account usage for project‑related postings. If G/L accounts with Cost Element Category 11 or 12 are currently used for billable project postings:
- Adjust the Cost Element Category to a value eligible for cost‑based billing
- Use appropriate cost or expense accounts intended for Project Billing integration
Without this adaptation, affected postings will no longer be eligible for billing once release 2608 is active.
Related Information
- SAP Support Component: PPM‑SCL‑BIL
Conclusion
With SAP S/4HANA Cloud Public Edition 2608, Project Billing enforces a standardized and consistent billing‑relevance evaluation. Journal entries posted to G/L accounts with Cost Element Category 11 (Revenues) or 12 (Sales Deduction) are excluded from Project Billing across all billing channels.
By aligning G/L account configuration with cost‑based billing principles, you can ensure uninterrupted and compliant Project Billing processes.
