Customer project Settlement

Dear All,
i am working in customer projects. Actual cost and revenues r flowing.The RA key to the top WBS Element which is also billing element. I heve done the revenue based result anlaysis.Profit and loss are showing in RA. Now i want to settle the project to CO-PA.
Given settlement rule to top WBS Element and all other lower WBS element have profile not ot settle.if i run settlement CJ88 then nothing is flowing and not any error.
Need solution.

Dear,
i m settleing the lower level WBS Element to top WBS Element which is billing element and result analysis is done for that top wbse .Then i want to settle the top wbse to profibility segement .Then after trying some config steps and defining PA transfer strature settlement of lower level wbse to upper level wbse is going well and accounting document is creating well.And CJI3 report its flowing well.
but in top WBSE the rule is profibility segment.I've done the result analysis and the net value (revenue-actual cost)
is also showing.That value is on the lower level wbse and that only value is going to TOP wbse after settlement.
but now i want to settle this top wbse but its showing no accured cost or revenue.
Is the process i m using is correct or i've to do it by some other method.The RA valuation method is revenue based.
sukhveer

Similar Messages

Without COPA customer project settlement

Without COPA customer project settlement - where it should get settled ?
MGK

Should it? Well, first you need to know why do you want to settle. If you have RA to be posted for example.

Customer project settlement to sales order item

Hi experts
I wish to settlement the customer project to sales order item. Accordingly the settlement profile is defined.
However, w.r.t. settlement strategy, what is the relevant account assignement category?
It cantains the eligible values:
AAC                  Description
-           No receiver
1           Profitability segment
2           Requesting cost center
3           Responsible cost center
4           Copy rule from superior object
Please suggest the correct setting.
warm regards
ramSiva

use BADI - WBS_SETTLEMENT_RULE
this BADI allows you to generate settlement rule as you want

Settlement of customer project--without COPA

Hi guru's,
We do not have COPA in place here...so how to settle our project.
please provide me any revlevant doc regarding settlement from the config as well as execution of settlement point of view.
I need to sit with my CO consultant.
My counter part CO Consultant has not worked with PS integration so he is not having idea about the settlement for projects....i need to make him understand.
Please help me.

Recommendations in Customer Projects
In customer projects, the actual costs are settled, but accrued amounts (such as costs of sales or inventory from which revenue can be generated) are not. You carry out this settlement at billing element level.
For customer projects which you settle in full to Profitability Analysis, it is a good idea to generate the settlement rule using a strategy defined in the IMG. The standard system we deliver includes a strategy for automatically generated settlement rules for customer projects.
The system uses this strategy to generate the following:
u2022     For all billing elements:
o     Results analysis key
o     Settlement to profitability segment
o     A settlement profile providing for settlement in full
u2022     For all other WBS elements
o     No results analysis key
o     A settlement profile providing for no settlement
If account assignment elements within a billing structure do not contribute to the cost of sales, you can change the settlement rule manually.
If you maintain the settlement rule manually, we recommend you proceed as follows:
u2022     Use a project profile with a settlement profile that forbids settlement. This initially prevents settlement for all the WBS elements in the project.
u2022     Change the settlement profile in the billing elements manually. Define a settlement profile that permits settlement.
u2022     If you want to settle account assignment elements (in whole or in part), you must change the settlement profile for account assignment elements manually.
You change the settlement profile in the settlement rule for the object by choosing Goto  Settlement parameters. There is a parameter in the settlement profile which you can use to define whether settlement is forbidden, allowed, or required.
Avoid making settlements within the project hierarchy. These can adversely affect system performance.
For more information on settling customer projects, refer to Settlement in Product Cost Controlling .
Regards,
ANSAR

Settlement in Customer Projects

Dear all,
In our scenario, we have customer projects which are settled to Profitability segment. The client doesn't want to settle the projects periodically. The client wants to settle the project only onces when the project is over. In this case the project will hold cost till the last day.
Client intents to use RA only for information purpose and not for posting the RA value on the project. Hence clients decision seems genuine.
What are the impact of this decision? How often do we really have to settle the project in this situation?
What is the impact of not settling the project at all?
Request your opinion on this issue.
Warm regards,
Srinivas Potluri

Hi Srini,
The business process as required by you is possible & i don't think there will be any impact. Project settlement can be made on completion of project iteself, n't periodically as your identifying cost / revenue externally.
RA can be used to identify calculated revenue / cost & n't to consider real posting into FI.
Few queries, i would like to ask on your business scenarios. If the project settlemnt is after completion of project only, how project profitability is obtained from period to period. How is balance sheet reporting for the ongoing projects.
Hope this will help you.
Regards,
Rakesh Pradhan

Project Settlement - Aggregating/Settling on new custom field

At our company, we created a new custom field called "Location Code" that is populated during journal entries through manual input. When an entry to a WBS element is posted with a Location Code value entered, the Location Code value also gets carried over to CO (controlling), SPL, and is in PS. The problem we have is with settlement as it does not carry over the Location Code at the final settlement receiver. For example:
1. Journal entry is posted to WBS element H01.12345.01.01 with Location Code value entered of "435" (this is a field in the FI document posting screen) for $100. Another entry is posted to the same WBS element but with a different Location Code of "080" for $200. Both entries to the same G/L account.
2. Settlement is run to settle the 2 entries in Step 1 above which totals ($200 + $100) $300. WBS element H01.12345.01.01 will settle to a cost center.
3. When we view the final accounting documents (especially our special ledger purpose documents), Location Code value is blank and there is one entry to the receiving cost center for $300. It seems project settlement aggregates entries based only on WBS level and G/L account.
QUESTION: Is it possible (and if so, how) to get projects to settle these lines individually based on aggregating on Location Code as well as G/L account? We would like to see $200 settle to the receiving cost center with Location Code value "435", and another line settling $100 to the receiving cost center with Location Code "080".
I hope I made sense. Thanks in advance!

line item settlement should only be possible if the setting is maintained in the IM Profile and it sounds like your projects don't have an IM profile... so it shouldn't work. I haven't used it on a non-capital project but you could give it a shot.
[-nathan|http://wiki.sdn.sap.com/wiki/display/profile/Nathan+Genez]

After Settlement, Cost not transfer from one WBS to another WBS in customer project

Hello Experts,
I am trying to settle cost from one WBS (i.e. XYZ-000014-1) to another WBS (i.e. XYZ-00001)in customer project.
Its a revenue type of project.
I have added 4 internal activities in an network under one WBS (i.e. XYZ-000014-1).
Got actual values after confirming activities, then settle that network cost on WBS (i.e. XYZ-000014-1) through CJ88.
Now while trying to settle that cost from WBS (i.e. XYZ-000014-1) to WBS (i.e. XYZ-00001) through CJ88, system not showing any result.
Kindly give ur valuable inputs.
Regards,

Kindly tell me that is it a standard functionality of SAP that through CJ88 we can transfer cost from WBS to WBS.
Technically ,Yes.Cost is actually transferred from one cost object to another cost object.
I hv discuss the same with some of my frds ...some are denying the same that its not a standard functionality of SAP to transfer cost on same cost object.
Instead of 'transfer' I would rather use the word 'settlement' . Practically, they are right as projects-WBS are temporary endeavors of companies, and cost can not reside on WBS permanently as it has to settle to some entity (organizational unit) which can be accounted during the reconciliation of their chart of accounts and balance sheets.
SAP has provided us an option to settle our cost to WBS and hence its standard . Generally, we use it when we have 1 WBS at level 1 and all lower WBS's costs is settled to this WBS . Here, we specify Level 1 WBS as the receiver of cost of these lower WBS.
Hope,I am clear here.
Regards
Saurabh

About Generating Settlement Rule in Customer Project

Hi Experts,
I am doing the exercise of customer project T-100## in CA830.
While generating the settlement rule, the error log appeared: No profitability segment could be determined for the billing elements. So the settlement rule generation failured.
May somebody guide me how to solve this problem.
Thanks in advance!

Hi Balakrishman,
In my case, the fields of Business Area/Profit center have already been maintained. I think there must be other reasons that result in these error. Hope we can discuss further. Thank you for your help!
Regards,
Allen

Settlement for Internal and Customer Project

Hi Guys,
I am new to SAP PS.
I have a R&D project(Internal Project) and a Customer project. I know internal project is treated as Asset and settled as AUC, but can we settle it in any other way apart from cost center and GL account.
Then what about Customer project. I want to know how can we settle these both project and what are the setting and what are settlement rules used for settling Internal and Customer project?
Please need your help.
Thanks and Regards,
Roshan Malaruthu

For Internal/Investment project, you can settle all actual line items of CJIC/CJI3 to AUC then final settle capitalized items of AUC to FXA i.e. on fixed Asset using final settlement rule.
Note: You can also use GL Account or Cost Center here for settlement receiver.
Before doing this, you need to configure investment & settlement Profile. And assigned them to your Project Profile.
For Customer Project, As Santosh said is correct, you have to use Profitability Segment as settlement receiver. Just select PSG as default Obj type in settlement profile.
Also refer the link below for more details:
http://help.sap.com/saphelp_erp60_sp/helpdata/en/a9/ab7770414111d182b10000e829fbfe/content.htm?frameset=/en/6b/566b34b650f777e10000009b38f83b/frameset.htm
Regards
Shishir

Close of Customer Project without Settlement

Hi All,
Is it necessary to have Settlement rules for the Projects that are Subject to Result Analysis.
We want to Close the Customer Project without settlment, Since the RA has been carried out for this project.
When we are trying to Close the Project.Error Message.Still WIP Exists for this Project.
Please suggest what is the best way to close the Project without carrying settlement Run.
Regards,

Try this,
Create a settlement profile as "Not for Settlement", check the radio button for "Not for Settlement" and in the valid receivers maintain the option in the dropdown as Settlement optional or Settlement Not Required. Assign this Settlement profile to the project profile as well as maintain it in the settlement strategy for the respective Object.
Once you are done with this, run your usual scenario and then try to close the project without running settlement. See what happens and revert with your findings.
Regards,
Gokul

Problem while settling the customer project

Hi
I am trying to settlement of customer project, but while doing so It says investment measure rather than processed when trying to generate settlement rules – bal of $5000. Please can any body tell where would be the actual problem.
Thanks & Regards
Satish

Hello Saurabh
I have not assigned any invest profile in project. But in the table PRPS for all these
WBS elements an investment profile has been assigned. When I make settlement run
CJB2 it say processing is done with out error. But in the processing category the following message is displayed. The project is Customer project.
Thanks & Regards
Satish

PS module ---Functional steps in Investment and Customer Projects in PS

Hi Experts,
I am new in PS module,Pls tell the steps in----->
1>Investment Project---The steps and transactions in PS according to Flow of PS module in Investment project from start till end of PS.
2>Customer Project--The steps and transactions in PS according to Flow of PS module in Customer Project from start till end of PS.
I    want to know functionally how the above Projects operate differently functionally with transactions and Flow.
Regards,
Rahul

Hi Rahul,
In addition to link provided above , please have a look on functional steps for Typical Investment & Customer project scenarios as follows.
Investment Project
1. Create a suitable WBS using Project builder.
2. Plan basic dates manually for WBS elements using Project planning board
3. Plan costs manually for WBs elements using Easy cost planning
4. Budget WBS elements
5. Enter actual dates during the project execution phase.
6. Assign various documents for WBS elements using Execution Services for updating commitment &
   actual costs.
7. Calculate overhead costs & carry out settlement to assets under construction or completed asset in
   Asset accounting.
Customer Project
1. Create a customer inquiry in SD.
2. Create a project (WBS & Network) using standard structures
3. Plan dates using Scheduling
4. Plan Resources
5. Plan materials by transferring Bills of Material
6. Plan costs using Network costing
7. Create sales pricing data ( Create quotation bases on project cost plan,Plan revenues for project)
8. Create a sales order with a bliing plan in SD
9. Create confirmations ( using CATS)
10. Purchase matetrials & services.
11. Document variance usign claims
12. Post Revenues using Milestone billing
13. Calculate overhead costs,carry out a results analysis & settle results analysis values to profitability
      segment.
Regards
Tushar

Customer Project

Hi Dear All,
Normally in PS, there are so many types of projects are there. I have doubts regarding Settlement to the Customer Project. I have gone through the sap documents, in that i came to know, that customer projects needs to settle to CO PA. But in my concern we are not going with CO PA. What can we do. I think is there are some ways to do the settlement other than CO PA. Can u please share on your views.
Regards
Raj

hi
you can settle the same to a cost center.

To have better understanding in project settlement

Dear all,
I am new in PS and hopefully I can have a clearer picture of the account entries for the best practise of a project settlement.
This is a customer/sales project. When we post any project related expenses/revenue, we assign a WBS to the line item so that the WBS is able to capture the costs. When we run settlement (CJ88) during the month end, the net of all expenses and revenue will be posted to the system.
1) For example, during month end total expenses is $600 and total progress billing (revenue) is $1000, what will be accounting entries of CJ88? Are the entries below correct?
DR. WIP Settlement 400
      CR. BS A/c            400
FYI:
This Balance Sheet A/c (BS A/c) is shown under current asset in the Balance Sheet (t-code F.01).
WIP Settlement is set in settlement profile (or allocation structure to be exact) while BS a/c is set in settlement rule.
The end user is not using COPA. They always settle the costs to a G/L a/c specified in the settlement rule.
2) What if on the 2nd month total expenses is $300 and the progress billing is $200, are the entries below correct?
DR. BS A/c      100
     CR WIP Settlement 100
3) In the end of the project, how are the above being settled completely? What happened to the balance in the GL account set in allocation structure (settlement costs element)??
4) This end user chose to settle to a GL a/c so that it will be displayed under current asset in the balance sheet. Is this the only reason to settle to a GL a/c?
5) If the Q1-Q2 above are rather confusing, what would be the best practise for a company without COPA settling the costs/revenues to a G/L?
Thank you.

Hi all,
Thanks for the prompt reply.
hmm... the end user is not using any RA key/method.
They execute the settlement without running KKA2.
1) is it possible to do that?
I have done some reading on RA and here is my understanding:
KKA2 is basically used to calculate WIP and CJ88 is to post this WIP to any receiver.
but I find it difficult to fully understand in terms of the postings (accounting entries).
2) Can you provide any example in terms of accounting entries, from the expenses charge into the WBS to the periodic settlement and finally the final settlement? (Not able to find 1 in SAP Help)
Thank you.
Edited by: SebastianKwan on Apr 7, 2011 3:31 PM

Customer projects

Dear All,
            Till now i am working at investment projects now i am at customer projects.I am selling BTS towers to my customers.I've made structure for it but client need to go at WBS element level as the material is procured at WBSE level.
                                                    Tell me how can i get the whole actual cost of project.As the material is assigned to wbse level only.But how can i get other cost as services,wages and other if activities is only for scheduling or date monitering.
Regards.
Sukhveer

Period-End Closing for a Customer Project
Usage
In this IDES process, you carry out a month-end closing. To do this, you first post all period-based data on the project. You then determine the data relevant to Profitability Analysis (CO-PA) for the given period, and settle this data to CO-PA. You can evaluate the data either in the project information system, or in Profitability Analysis.
Prerequisites
This IDES process is based on the data from the process Make-to-Order Production of Elevators. You should carry out this process before you start the period-end closing .
Procedure
You can find the data for this process under .
1.     Actual overhead rates
The system calculates the overhead and updates them in the project.
See also Determining Overhead Rates and Evaluating Project Data by Cost Element
2.     Settlement generation
Before you carry out results analysis and settlement, you first need to have correctly maintained the settlement rule and the PA transfer structure. The system generates the relevant entries automatically when it generates the settlement rule.
See Generating the Settlement Rule and Checking the Settlement Rule.
3.     Results analysis
The system determines by period the data relevant to results analysis, such as, work-in-process and inventory costs.
See Executing Results Analysis
4.     Settlement
You settle the data from results analysis to the profitability segment. This means that the project data is now available to Controlling.
See Executing Settlement and Displaying Line Items.
You can settle the costs of customer projects. You need to define the cost receivers in the settlement profile.
Generally costs for customer projects are settled to 'Profitability Segment'.
Results Analysis Methods - Use
Which resul ts analysis method you choose depends on your business requirements. A company will normally run different types of processing u2013 and therefore use different methods of results analysis u2013 simultaneously. Results analysis methods contain the rule for calculating the results analysis data.
Prerequisites
The standard system contains a number of different results analysis methods. Decide which results analysis method you want to use.
Choose a results analysis method in simplified Customizing for Product Cost by Sales Order under Period-End Closing  Results Analysis  Valuation Method.
Decision Criteria
Capitalized Costs, Revenue in Excess of Billings, and Reserves
Legal requirements in different countries stipulate that unrealized profits can be capitalized or that they cannot be capitalized. This situation requires different balancing methods in the different countries.
u2022     If you want to capitalize unrealized profits, use a results analysis method that can be used to create revenue in excess of billings.
u2022     If you want to capitalize unrealized profits, use a results analysis method that can be used to create capitalized costs.
Some methods of creating capitalized costs and creating revenue in excess of billings also allow automatic creation of reserves for unrealized costs or reserves for imminent losses.
Milestone Billing / Milestone Delivery
If you want to use milestone billing or milestone delivery, use a results analysis method that allows creation of new capitalized costs in each period.
Features
For the system to be able to place the costs and revenues in relation to each other, a calculated percentage of completion (POC) must be generated. The percentage of completion can be calculated on the basis of the following data:
u2022     R(p) planned revenues; C(p) planned costs; Q(p) planned quantity
u2022     R(a) actual revenues; C(a) actual costs; Q(a) actual quantity
The system can calculate results analysis data using the percentage of completion. This data includes:
u2022     C(z) capitalized costs (work in process)
u2022     C(r) reserves for unrealized costs
u2022     R(z) revenue in excess of billings
u2022     R(r) revenue surplus
u2022     R(PA) revenue affecting net income
u2022     C(PA) costs affecting net income (cost of sales)
This results in the following formulas:
R(PA) = POC * R(p)
C(PA) = COS * C(p)
This has the following consequences:
u2022     The revenue affecting net income is calculated by multiplying the percentage of completion by the planned revenue.
u2022     The cost of sales is calculated by multiplying the percentage of completion by the planned costs.
u2022     In the revenue-based results analysis method, the COS is calculated as follows:
u2022     POC = R(a) / R(p)
u2022     Therefore: R(PA) = R(a) / R(p) * R(p) = R(a)
u2022     C(PA) = R(a) / R(p) * C(p)
u2022     In the POC method, the COS is calculated as follows:
u2022     POC = C(a) / C(p)
u2022     Therefore: R(PA) = C(a) / C(p) * R(p)
u2022     C(PA) = C(a) / C(p) * C(p) = C(a)
The following formula always holds:
u2022     C(PA) < C(a) u2013-> C(z)
If the costs that affect net income are less than the actual costs, the system creates capitalized costs. The capitalized costs can be capitalized in the balance sheet through settlement to FI.
u2022     C(PA) > C(a) --> C(r)
If the costs affecting net income are greater than the actual costs, the system creates reserves for unrealized costs. The reserves can be shown as a liability in the balance sheet through settlement to FI.
u2022     R(PA) < R(a) --> R(r)
If the revenue affecting net income is less than the actual revenue, the system creates a revenue surplus. The revenue surplus is basically a reserve. The revenue surplus can be shown as a liability in the balance sheet through settlement to FI.
u2022     R(PA) > R(a) --> R(z)
If the revenue affecting net income is greater than the actual revenue, the system creates revenue in excess of billings. The revenue in excess of billings can be capitalized in the balance sheet through settlement to FI.
Activities
Choose a results analysis method in Customizing for Product Cost by Sales Order under Period-End Closing  Results Analysis  Define Valuation Method.
You can view the settings for the simplified results analysis methods in the Expert Mode of the valuation method.
Regards,
ANSAR

Customer project Settlement

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