Quantity base POC method of result analysis

hello all,
We are trying to create the result analysis key with quantity based POC method for Projects. we are choosing the Profit basis as E,K,M but we are getting the error ' Profit basis is only used for sales order.
Can anybody help resolving the issue?
Regards,
sudhir

RamSiva,
I see that you've got the calculated COGS equal to the actual cost. I would have thought that for quantity based POC the calculated cost should be equal to POC x C(p). So if that's the case, I think the postings should be as follows:
Debit Revenue for 36,000
Credit Reserve for Revenue surplus for 36,000
Since I don't know what the planned cost were I don't know what the correct signs are for COGS adjustment;
Debit / Credit (Expense)
Debit / Credit (Capitalized cost or reserve for unrealized cost, depending on the sign)
If R(a) less than R(c) then:
Credit Revenue
Debit Revenue in excessive of billings
thanks,

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In SAP Product Cost Controlling ther are 3 types of Cosings
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Path:- Production Cost by Period ---> Period end Closing ->WIP->Defind Valuation Method for ( Target Cost )
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I am configuring Result analysis related configuration to post WIP values to FI on period basis. I did following nodes configuration
1. Create Result Analysis Keys
2. Define Result Analysis Versions
3. Define Valuation Methods for Result Analysis
4. Define LIne ID
5. Define Assignment for Result Analysis
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Based up on the above discussion did you executed any standard cost and revenue reports against the relevant WBS elements and verified that costs and revenue are flowing properly to the project ?
In the RA are you able to see the WIP Values,Planned values and Actual values for COST and REVENUE ?
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No entered status set. No results analysis will be performed

Hi Guys,
I keep on getting this error message beloe and the valuation is on RELEASE status
No entered status set. No results analysis will be performed
Message no. KJ210
Diagnosis
The valuation of the order or project in results analysis depends on the status of the object.
In this case, the object does not have an active status entered in the valuation methods in Customizing for WIP calculation and results analysis. Consequently, WIP calculation and results analysis cannot find a method with which the object can be processed.
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Decide whether the object should be processed in its current state (indicated by its active status in status management) by WIP calculation and results analysis.
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If you do not want to process the object:
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Example:
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KJ280 Message Results Analysis KKA1

Hi All,
I am Trying to do a Results Aanalysis on one Serivce Order in KKA1 and it throws the following Error , I changed the status TECO, and changed the RA Key ,Just a try, but still gives the same Error Message, If anyone can Help me in this I really appreciate that.
Thanks,
Sandhya
Order without revenue: Only RA types F and Z permitted
Message no. KJ280
Diagnosis
The order type of the order on which you are attempting to perform results analysis does not allow revenue posting.
In the results analysis version, you specified that work in process for this order is calculated separately instead of through results analysis for the sales order item or WBS element. This means that the work in process will be calculated through the results analysis key in the order until the order has the status DLV (delivered) or TECO (technically completed). Once the order has one of these statuses, the actual costs for the order are included in results analysis for the higher-level sales order or WBS element.
Procedure
Enter a results analysis key in the order that is suitable for calculating work in process. To do this, choose a results analysis key for which a valuation method with results analysis type F (calculate work in process) or Z (cancel work in process) is defined.
If no results analysis key has been defined for WIP calculation, you must go into Customizing and change the valuation method of the results analysis key accordingly.

Hi,
Plz check u r RA version. In the version check under calculate WIP or RA for section. I think in u r version there is tick box on Internal and service orders w/o revenue. In conjunction with this check which is more appropriate between first and last option in this section.
If last option selected, it wont allow if you have any revenues on your order. Then check u r valuation method statuses and u r order status.
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Result Analysis method 03 Cost Proportional POC

Hi,
I am going to use Result analysi 03 Cost Proportional POC. Please guide me how the accounting entries will
flow in this method and formulas for this method.
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In your RA key definition, in column, Valuation...
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Results analysis for POC method with statistical cost element

Hi,
We are testing ETO (engineering-to-order) scenario With valuated
project stock and cost based POC RA method.
Inventory is updated during external procurement and we have used
statistical cost elements (Cost element category - 90) for inventory G/L.We want to use a
Result analysis method which considers this statistical cost elements
for calculating POC.For this purpose we have implemented SAP Notes
616960, 616869 and 78420.
In short, as per SAP note 616869, we created a customer enhancement
project for customer enhancement 5 of the results analysis (see Note
H78420). We copied the source code for customer enhancement 5 of the
correction instructions of note 616869 and then implemented SAP note
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Then we included the statistical cost as actual costs - Category K in
OKG4.
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correctly after taking into consideration the posted statistical cost.
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inventory value. On settlement of RA, revenue should be recognized but
at the sametime the inventory represented by statistical posting should
be consumed(COS). The system should post a P&L posting which reduces
the inventory (representing statistical cost) and updates the actual
costs on settlement.
In our example, Statistical actual
posting is of USD 57150, planned revenue USD 100000 and POC is 70.27%.
Revenue in excess of billing comes to USD 70265.60. Recognisation of
revenue of USD 70265.60 is not correct as actual consumption is yet to
happen. The correct posting in FI should be revenue of USD 70265.60
along with COS of USD 57150.
Please suggest why on settlement the system is not posting the COS
along with revenue recognised?
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BK

Hi Bijay,
We are in a similar situation in one project. Did you get any solution to the problem you posted here? If you can share it, please.
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Gireesh

Results Analysis - Cost based POC method without margin

Hello Experts,
I would like to use the standard method - 03 , Cost based POC method but without margin. That means,
1. System will calculate POC based on the actual costs and planned costs.
2. Calulated revenue is created by multiplying the POC and the planned revenue.
Here, Till the actual revenue is more than the planned costs, calculated revenue should be made equal to the actual costs.
I have created standard method -03 and in the expert mode i have changed the profit indicator to " E - Profit Realization if actual revenue greater than planned costs"
This works for first period when there is no actual revenue. After the actual revenue which is less than the planned cost,
this does not work.
Please let me know if you have any suggestion
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Regards
Srinivasan Desingh

in our projects I used to sit with CO consultant and do a lot of RA testing by changing different fields and finally reach the required result. Hit and Trial method (so it is hard to remember exactly what happen while changing a single field as there are many fields in expert mode). May be you can also try the same.

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Hi,
How to update SO item quantity into planned quantity in transaction KKAK ?
Is there any transaction to run ?
Our scenario doesn't require delivery or production order.
Sorry for beginner question.
Thanks,

Dear Max,
We need to have a valuation method assigned through a Result Analysis key which is assinged in the requirement class of the sales order item. In that we have the customisation for the requested functionality:
Please take a look into the below link for more details:
http://help.sap.com/saphelp_470/helpdata/en/90/ba6f37446711d189420000e829fbbd/content.htm
We have a customisation for Profit Basis in OKG3 and it goes as below:
The profit basis specifies how the system determines the planned costs that are used to calculate the results analysis data. For example, the planned costs may be based on the preliminary cost estimate for the production order or on the sales order cost estimate.
Kind Regards
Umapathi G

Result Analysis Valuation Method 3

Hi PS Experts,
The building block document on Profit Realization 'I58_BB_ConfigGuide_EN_DE' says that as per IAS 11 and 18, we need to configure Result Analysis Valuation Method 3 only which is cost based. Is it right and whether you are all having this valuation method in your SAP system where IFRS standards are applicable.
Then, in addition to this cost based Revenue Recognition through this valuation method 3, we would like to input realistic POC(Engineer's certificate) into the system. Whether it is possible and if so, how and what other valuation method we need to use with or with changes to a particular valuation method. Appreciate your valuable inputs on this.
Regards!

Hello,
Cost based POC i.e Method 3 is compliant with IFRS requirements. Other methods also are so.
The choice of RA method depends on value/risk/duration/revenue plan of the project. We use this method for high value projects running for a long time where there is a need to recognise revenue before actual billing.
Completed contract method is also used and very much in accordance with accouning principles.
For POC calculated through progress determination- say Engineer's certificate- you can use method 7.
Thanks,

Result analysis method

hi dear,the expert mode is active for one RA key,then how can i know the original result analysis method used in this key?because i can not display view of "simplified maintenance of valuation method" after expert mode used

Hi,
In your RA key definition, in column, Valuation...
change valuation basis to J - Cumulative Actual Costs, Cumulative Actual Revenues

Which Results Analysis Method is good for LOSS Projects?

Dear Experts,
Our client have Loss projects scenario.
for Eg. Plan Revenue_: 100,
Plan Cost__________: 120
Loss______________: = -20
Loss 20 should post in accounts at first period end closing time itself for that which Results Analysis Method can help me for it. Plz give me your valuable solution soon.
Thanks
Bhagirath

Hi,
which RA Method you are using.
If you are using method 01 then in OKG8,Choose RA Cat RIML(Reserves for Imminent loss) or if you are using 03 method then use POCL .Assign the GL accounts againt these RA cat one B/S Account and one P&L (not a Cost element).
Muzamil

Results Analysis Message KJ436

While setting up Results Analysis for the POC method (03) and executing transaction KKA2, we got the following message. Both the CO version and the RA version are set to the same valuation (Group valuation). Any help would be appriciated.
Basic RA version must have valuation category "0" (operational valuation)
Message no. KJ436
Diagnosis
If a version has actual data (see basic version setting), it must be relevant to settlement in results analysis (see maintenance of version of results analysis).
If a version does not have actual data (see basic version setting), it cannot be relevant to settlement in results analysis (see maintenance of the version of results analysis).
Procedure
1. Check the basic version setting in the maintenance of the general versions.
2. Modify the results analysis version to conform to the basic version setting.
3. Turn the indicator Version relevant to settlement on or off, whichever is appropriate.We are using CO plan version 0 (see below) and it is set for actual and plan. The RA version (0) (also below) is marked as being relevant to settlement. These settings seems to address the error message but I guess we are missing something.

Hai Mikhail
As u mentioned u set the RA method for POC3 in OKG3.
Assuming maintained in OKG3 - the status control ,profit Basis,Valuation Level and its Minimum Values.
Is the RA version been maintained in OKG2 ?
In OKG2 - need to maintain the RA version with respect to the Controlling Area like 0 or 1.
Is OKG8 has been maintained on the Posting Rules - means where the RA version should have the corrsponding Profit & loss account number and Balance sheet account number.
Kindly check and verify according to the relevant RA used/picked using OKG1 in Config - OKG2(maintain RA versions), OKG3(valuation methods for RA), Define Line ID's , OKG5 ( Assignment of Cost elements for WIP and RA) , OKG4( update of WIP calculation and RA) , OKG8 ( Posting rules in WIP and RA) .
If all these maintained u will definetelu get the KKA2 result.
ENJOY SAP PS
Regards
PP

Results Analysis Keyu2019

What is the significance of u2018Results Analysis Keyu2019 parameter in process order?

Hi,
RA Key that defines the valuation of the order during period-end closing.
How the results analysis key is used depends on the nature of the order.
For orders with revenue ( internal orders, sales orders, and projects), the results analysis key determines how results analysis is carried out.
Results analysis is recommended in the following situations:
When you are using a nonvaluated sales order stock or nonvaluated project stock and you want to valuate the inventories at the end of the period
When you are using a valuated sales order stock or valuated project stock and want to valuate goods that have been delivered but not yet invoiced, or when you want to create reserves automatically
For orders without reference to a sales order item or WBS element, the results analysis key determines how the work in process is calculated.
The production type can be make-to-stock or mass production on the basis of sales orders. The work in process is calculated at the level of the production order, process order, or product cost collector.
For capital investment measures, the results analysis key determines how the system calculates the values to be capitalized.
Examples
For orders with revenue, costs may be incurred before any revenue is received. If you are using a nonvaluated sales order stock, results analysis enables you to report the costs as work in process. After the first revenue has been posted, you can calculate the cost of sales. If the calculated cost of sales is greater than the actual costs incurred to date, the system creates reserves for unrealized costs in the amount of the difference.
No revenue is posted in CO for orders without reference to a sales order item. Each goods receipt for these orders is valuated. The work in process for these orders can be calculated with two different methods:
Work in process at actual costs
The actual costs for production orders and process orders for which no delivery has taken place are reported as work in process. After a partial delivery, the difference between the debit of the order with actual costs and the credit of the order from goods receipts is reported as work in process. When the order is complete, this work in process is canceled. The difference between the debit and credit of the order is then interpreted by the system as a variance.
In Product Cost by Order, the work in process is usually valuated at actual costs.
A requirement for the valuation of work in process at actual costs is that the default rule PP1 (full settlement) must be specified in the order.
Work in process at target costs
A confirmation is made for each operation or at certain reporting points. The system uses the confirmations to determine the quantity of work in process. This quantity is valuated using the strategy sequence specified in the valuation variant for work in process and scrap.
In Product Cost by Period, the work in process is always valuated at target costs.
A requirement for the valuation of work in process at target costs is that the default rule PP2 (periodic settlement) must be specified in the order.
Hope it is clear.
Srini

Prepaid Result Analysis

I have a scenario in result analysis as follows:
1.     The customer pays the full amount at the start of the project (prepaid).
2.     Before we incur costs this billed amount has to be deferred.
3.     Once we start booking T&M to the project we would recognize the revenue based on a POC method.
4.     We want the POC method to be quantity based. e.g. Planned hours divided by actual hours
How do we configure this scenario?

Hi,
The system calculates and posts as follows:
C(PA) < C(a) --> C(z):
     If the calculated costs 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.
C(PA) > C(a) --> C(r):
     If the calculated costs 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.
R(PA)< R(a) --> R(r):
     If the calculated revenue is less 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.
R(PA) > R(a) -- > R(z):
     If the calculated revenue 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.
Trust this helps much!
Cheers!

Quantity base POC method of result analysis

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