Hello Raman
Kindly find the answers related to Revenue Recongition Queries:
1. You don't need to manually assign costs to the Sales Order Items. When you link the sales order item to the Project header or a Project Task, system will automatically create the assignment rules.Then all the expenses assigned to the Project Header or Project Task will be automatically assigned to the Linked sales order item. However if you have assigned the Project Task in the Sales Order Item and you record your expenses against the Project header, then system won't be able find the linked Sales Order Item.Hence cost will be assigned.You can manully maintain rules for such cases and click on Apply Assignement Rules to determine the sales order item for all the unassigned Expense items.
2. For the Product -delivery-based Items,cost will be picked from valuation tab of the product master data.
For project based items, the assumption is that the cost Calculation is done by the project lead and entered in Sales order manually in the Pricing and Invoicing tab.
Thanks
Parveen Kumar