Customer projects

Question

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

Answer 1

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