Project settlement in case of revenues

Hi Gurus,
In our case cost and revenue gets settled to wbs from service order. And from wbs cost should settle to cost center. What about revenues settlement from wbs...Should it happen or not...what is the correct process????
Thank you

Hi,
Cost and revenues you can settle to any cost object but cost will settle to cost center for report generation and revenue will settle to CO-PA.

Similar Messages

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

Hi Balance sheet and P&L project wise in case of joint venture.

Hi Gurus,
One of my client undertakes different projects like roads, building, bridge etc. with joint venture agreement.
Now he wants balance sheet and P&L with each project wise in case of joint venture.
In sap which module fulfill this requirement or Project systems will fulfill this requirement or not.
suggest me.
Regards
Sreenivas.P

Hi,
Joint Venture Accounting is used when you have atleast two partners - one is Operating and another is Not Operating. They share the risk and revenues. You can then create a JV Agreement using GJAA and Joint Venture Partners under this agreement using GJVV. Further you need to create Equity Group defining their profit sharing ratio.
JVA could be a solution for you since here you can get a report for each JV serparately. You can also use Cutback procedure to claim expenses from the non-operating partners.
However Project System is used for monitoring and executing projects with Budget controls and so on. You can integrate both PS and JVA for your solution.
Regards,
Sanjay

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

Automatic Asset creation through Project settlement

Dear All,
We have one issues where in AS02 AUC Asset quantity is in display mode still we can find the quantity there.
Can any body help me about the Process of Auto Asset creation through Project settlement.
I need to know how system calculate the Quantity from the Project settlement. if such type of Process exist in SAP
Thanks
Abhijeet
Edited by: Abhijeet Patil on Oct 5, 2011 3:05 PM
Edited by: Abhijeet Patil on Oct 5, 2011 3:05 PM

Hi,
There is process in SAP where we can create AuC from Projects. We need to have an investement profile set up and the same needs to be used in the project. You will have the details in SAP Help documnetation for this.
Regards
Sreekanth

Problem with project settlement

Hi,
I want to settle cost in project system by exclude some cost element for example
Cost was posted against WBS Y.001 with 2 lines item. cost element 10001 - 100 usd
20001 - 200 usd
Our requirement is only cost element in range 10000-19999 can settle to cost center, for other cost element cost remain in WBS.
But when i excecute project settlement system generate error message as u2018Cost element 20001cannot be assigned to a settlement cost assignment in allocation structure ZGu2019. For allocation sturture ZG i was maintain cost element in source form 10000 - 19999
So, Is it possible to settled by exclude some cost element even cost have posted to?
Thanks so much,
june.

Hi Pornat,
Please check Allocation Structure before cheking the Settlement Profile. In allocation structure the sender cost object and receiver cost object is there, pl check it. if u need any inputs then let me know.
raj

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]

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.

Exclude postings from certains accounts from Project Settlement

Hi,
I would like to know if there is a certain config that could exclude postings of CERTAIN ACCOUNTS from Project settlement.
Thanks!
Vivian

Hi,
May I know if you are referring to OKO6 config? We have no included any of those unwanted cost elements for settlement, but during settlement we are getting error saying that allocation structure not complete - so we need to find a way for system to totally exclude posting from those accounts for settlement (instead of showing error)
Thanks!
Vivian

Settlement message in service project settlement

Hi,
I am having issue during period end closing. Settlement say no accrued amount found for settlement. But when I see report project has the following values,
(rev)-2000
(cost)1500
Total= -500
Should these costs/ rev need to be settled some where as a period end closing? If yes then where? CJB2 generates profitability segment rule.
Do I need to run WIP before settlement? Project is already billed. (When I go there WIP shows this error 'KJ217 revenue are not planned')
When I do not bill customer only charge employee hours in project. WIP shows value and allow executing. And so the Settlement of project. So can settle expanses to PA and see report.
Addition Info:
We are creating projects from contract. There are services provided to customer in this particular scenario.
We are assigning employee hours from CATS and activity planning from CJR2 on WBS.
Billing customer using RRB and creating billing doc and invoice from there.
WBS has RA key assigned for RRB
Settlement rule automatically generate rule to settle in PA segment.

Thanks you for the quick response. When I run KKA2 it gives me the following message:
"Planned revenue for valuation is zero". I already have revenue planned in the project from cj42.
Please explain
Thanks

Capital Project Settlement Rule for lower WBS

Hello,
At my present client, for Investment projects the client want to settle top level WBS to AUC and capitalise it. So ideally the cost from lower level WBS should flow to top WBS. I am using substitution to remove investment profile from lower WBS.My concern is how do I auto populate the settlement rule for lower WBS to top WBS. I am aware about settlement strategy and OSS note 211324 (however dont want to implement this note)
The appraoch I am looking for is using "WBS_SETTLEMENT_RULE' BAdI . However this BADI calls for strategy and I could not maintain the required strategy (settlement to top WBS). Is there some BADI/Function module available which can be called for updating the settlement rules on lower WBS while saving or Release ? Can I make use of exits in Substitution?
Please let me know your opinions.
Thanks
Sarang

Thanks Virendra. I agrree the only approach is development. But I need to give inputs to my developer.
We tried with BADI "WBS_SETTLEMENT_RULE" but it didnt work as it calls strategy in configuration.
So I am checking for some other options for e.g "WORKBREAKDOWN_UPDATE" which is called during save or Fn modules K_SETTLEMENT_RULE_FILL or K_SETTLEMENT_RULE_SAVE which I can use. This is a client requirement to create AUC only at top level n all cost to be rolled up to superior WBS n then settle to AUC.
The other option I was thinking is of using exits thru substitution.
What will be the best approach?
Thanks
Sarang

Project settlement to CO-PA and BAdI for automatic creation of rules

Hello SAP experts!
I have managed to implement settlement rule strategy to CO-PA for sales project WBS-elements, which automatically creates the settlement rules for WBS-elements with billing indicator. One or more sales order items are assigned to the WBS-elements. When the system derives settlement rules, it generates profitability segments that contain the characteristic values of the WBS elements and the sales orders assigned to them. The problem is, that only one single settlement receiver is determined for each WBS-element. And if more that one sales order item is assigned to the same WBS-element only those characteristics are copied to the settlement rule that are same in all sales order items.
For example; it products are different in all sales order items, the automatically created settlement rule does not contain the characteristic value product or neighter other caracteristics derived from product.
Do You have experience of using BAdI for influencing the generation of settlement rules? What it actually makes possible?
Br, Nina

Dear Waman,
thank you for your reply !
Yet - this still does not solve our problem. In that note (and also in the related note 201445) there is no valuable information included concerning transaction currency:
Our WBS elements (and also other cost objects, e.g. sales order items) are being debited in all of the three currencies.....but the credit (during settlement) only takes place in two of them: object and CO area currency.
I really appreciate additional help on this. It would be hard to believe that we are the only SAP customer having this kind of problem.
Best regards,
Thomas

Trip expense report settlement in case of Inactive Employee

Hi T&E Experts,
We are facing a typical problem, in settlement of inactive employee trip expense report.
Details are as below:
- One of the employee moved from 1 Organisation to other. His personnel number status in old organisation is showing as "Withdrawn".
- Some of the credit-card charges on his personnel number are still pending for settlement.
- The current trip created to settle these charges is in "Approved - To be settled" status.
- Now we are trying to use "PREC" transaction to settle the trip. Transaction is rejecting the trip, as personnel number is invalid (inactive).
- Because the trip is still not in "Settled" status, we cannot use PRFI transaction to manually release the trip payment in next posting run.
We have tried different ways like making the employee active, but nothing is working here.
> Requesting your inputs to provide way-out in above case.
> Also is there any standard procedure, which is to be followed in case of settlement of Inactive Employee pending charges ?
Thanks in advance,
Aditya

Would agree with Mathieu in this case, changing the SYS_DATE on the authorization check is probably the most effective way of avoiding this as the authorization check is very strong in Travel for infotype 0000/0002/0017 etc.
FM CHECK_AUTH_AUTHP.
*    AUTHORITY-CHECK OBJECT 'P_TRAVL'
*       ID 'AUTHP' FIELD authp
*       ID 'BUKRS' FIELD p0001-bukrs
*       ID 'PERSA' FIELD p0001-werks
*       ID 'KOSTL' FIELD check_kostl
*       ID 'PERSG' FIELD p0001-persg
*       ID 'PERSK' FIELD p0001-persk
*       ID 'VDSK1' FIELD p0001-vdsk1
*       ID 'PTZUO' FIELD p0017-ptzuo
One other point is how you configure the leaving action for an employee who will be terminated (this is done via PR05 in the radio button "Organizational reassignment")
Whilst it should not be possible to create a trip/expense report for a terminated employee, however as there may still be a need to process expenses with posting to FI/Payroll etc after the termination date
(Table V_T582A, for the relevant HR infotypes 0000, 0001 and IT017 is relevant here and needs to be maintained) then the leaving action also becomes important.
Finally, keep in mind that credit card expenses if you use CC clearing go to the error file for inactive employees
This is mentioned in the wiki Processing credit card receipts and expenses for inactive employees - ERP Human Capital Management - SCN Wiki
Hope it helps
Sally

Project Settlement @ Project Systems

Hi Experts
I am working on how to settle a Project in Project Systems. Could you please provide me guidelines how to do it.
I am also looking for the connection/relation between Project Systems and Result Analysis of Product Costing.
Thank you
regards,
S. Habib Pasha.

HI
The moment you say that the settlement to GL account, it is an external settlement i.e CO to FI ( WBS element being a cost object ) . In the allocation you need to have settlement element as an external settlement element with category "22" . When you are settling to a GL account and if it is a cost element then it will ask for a co object still as the system simultaneously needs to post to controlling as well. Yo make this setting for the GL account through automatic account assignment in transaction OKB9.
I this will solve your problem
Anand

Project Settlement Issue

Hi All,
We had an invoice that was entered with a wbs that had the following currencies: CO Currency = USD, Transaction Currency = USD and Object Currency = GBP within a company with a currency of GBP. However, when settling through CJ88, the settlement produces CO Currency = USD (zeros out), Transaction Currency = GBP (balance) and Object Currency = GBP (zeros out). So, when you try to settle for the next month, CJ88 states that there is an error states "Execute amount settlement up to and including settlement period 003 2009 first"
Message no. KD262.
As a bit of background, the project is in USD by some of the wbs elements within the project are based in GBP from the company code which is in GBP. I'm not sure how to have the settlement work out so that there is no balance.
Any assistance would be greatly appreciated!
Pete

Hi Sarang,
We settle on an individual wbs element so I tried reversing the settlement and then re-settling the wbs once again. The same issue is occurring where the CO Currency = USD, Transaction Currency = USD and Object Currency = GBP within a company with a currency of GBP. However, when settling through CJ88, the settlement produces CO Currency = USD (zeros out), Transaction Currency = GBP (balance) and Object Currency = GBP (zeros out). In order to properly settle, all 3 currencies need to zero out but it is still not working.
Any other thoughts?
Pete

Project settlement in case of revenues

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