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.
Thanks & Regards,
Srilakshmi
Hi,
In your RA key definition, in column, Valuation...
change valuation basis to J - Cumulative Actual Costs, Cumulative Actual Revenues
Similar Messages
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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
BhagirathHi,
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 -
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 -
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
616960 to read the statistical actual costs.
Then we included the statistical cost as actual costs - Category K in
OKG4.
The system is doing POC and revenue in excess of billing calculation
correctly after taking into consideration the posted statistical cost.
During settlement of RA (CJ88), system is not giving effect to
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?
Thanks,
BKHi 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.
Regards,
Gireesh -
Automatic Reversal of Result Analysis Posting
Dear Experts,
I would like to ask for suggestions in solving below case in my current project:
1. Project is created for sales of power solutions. Most of them are long-term, thus cost-based revenue recognition method is applied.
2. Result analysis with cost-based method (03) is periodically executed for project. Therefore, every month there are some revenue deferral/ accrual posting calculated based on actual cost - before the project is completely billed.
3. It is expected for revenue deferral/ accrual posting resulted from result analysis to be automatically reversed immediately in the next period (e.g. if RA is executed for July 2014, reversal posting needs to be immediately posted with posting date Aug 1st, 2014).
At first we were thinking to define new document type specifically for the result analysis posting, and perform mass reversal using F.80 transaction. But then we came to realize that result analysis entries are posted after settlement is executed -and accounting document generated from settlement transaction cannot be directly reversed in finance.
Anyone has encountered the same issue? How do we reverse result analysis posting without reversing the whole settlement transaction?
Thank you,
Regards,
AnalistiaHello,
First you need to configure the functionality from the bellow path
SPRO Financial AccountingGeneral Ledger Accounting Business Transaction Manual Accruals Basic Settings
Once Engine configured Accrual document can be created through the easy access menu.
AccountingFinancial AccountingGeneral LedgerPeriodic Processing Manual Accruals Create Accrual Objects
Execution of Accrual documents
AccountingFinancial AccountingGeneral LedgerPeriodic Processing Manual Accruals Start Periodic Run
Regards,
Venkat -
Revenue Recognition Functionality through Result Analysis (RA) key
Hi all,
We have a requirement for Revenue recognition, Can anyone guide me Revenue recognition functionality through Result Analysis (RA) key and functions of RA Key .
Regards,
Lal MaheswararaoHi Makrand,
Thank you for your Valuable reply. Actually I am looking Specifically for the Revenue Recognition functionality in Cloud computing Business Scenarios. Like the income has to be recognized over the period of time on the basis of service provided. And it should calculate Percentage of completion for calculating revenues and Cost and how much profit it has to be recognised over the period.
These functions will possible through Result Analysis method. but i have very limited knowledge about RA method.
Can you please explain in general how Result analysis method will work and if possible with necessary configuration.
Regards,
Lal Maheswararao -
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
Thanks
Regards
Srinivasan Desinghin 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.
-
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,
sudhirRamSiva,
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, -
PROGRESS ANALYSIS: what does COST PROPORTIONAL measurement method use for?
Hi Experts,
When I tried to use the COST PROPORTIONAL measurement method, I found 1 thing:
+ actual POC = actual cost / overall value
+ BCWP = actual POC x overall value
It means that BCWP = ACWP (actual cost) --> Cost Variance (CV) = BCWP - ACWP = 0
Hence we cannot see the cost variance when we apply the COST PROPORTIONAL method.
Could you please help me to explain the use of COST PROPORTIONAL method?
Thanks and best regards,
Khoa HuynhHi Abdul Khader,
Thanks for your answer. I got your point.
But can you explain more about "Cost proportional measurement method is suitable for work packages where costs and services have a constant relationship"
Thanks a lot,
Khoa Huynh -
Problem while running KKA2 (result analysis) RA method 07(POC)
Hi All,
In our project we are using RA method( cost based method -07) when i have the planning cost (material and labour hrs) in the project. Here , issue what i am facing is till there is only showing planned material cost of the project , in KKA2 i can see the planned cost, but I am not able to see planned hours in my result analaysis kka2 if i refer any PS reports i can see the plan cost there. but i can see plan revenue as well .
I am confused with this kind of system behaviour. Kindly suggest me what shall i do to overcome this. In our scenario in valuation method i am ausing over all plan : E and over run : A
ThanksHello
Please note the description from the Overview for this SCN Space:
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Based do the above, I believe you posted your query into the incorrect SCN Space. Please use the Forum Finder for the New SCN document to find your product and post into that SCN Space.
Also seeing as you did not provide any product information, I would also highly recommend reading the SCN Rules of Engagement.
With best regards,
- Ludek -
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, -
Results analysis: any way to exclude certain cost element from calculation?
Hi everyone!
We are implementing Results Analysis for projects. But the client is asking if there is a way to exclude some cost elements of the results analysis calculation. We are using method 07, POC based in the project milestones.
This is why they need this. They say that very often they they have costs higher to what they should be according to the month's billing. So they need to send the corresponding part to a WIP account. But not all the costs. They have internal costs (like the hours of internal resources) and external costs (like materials procurement or external services contracts). They only want to send to WIP the exceeding external costs. But leave all the internal costs in a cost account. So to do this we need to exclude these kind of cost elements (secondary cost elements) from the results analysis calculation. Is there any way to do this? Any ideas?
Thanks in advance!
Regards,
Thalos.Hi,
In OKG4, next to Line ID there is a field where you can set "N" which means not to include. Make this settinng for required cost elements / Line ID's and then test the changes.
Regards
Sreekanth -
Technical Result Analysis Cost element - OKG2
Hi,
Need some inputs on Techincal Result analysis cost element(Whats the purpose and its use)
How is it different from those which we assign in Line ids.
Thanks & Regards,Cost element created for the following internal purposes:
For calculating work in process ( WIP calculation)
For results analysis
Work in Process
When work in process is calculated, the following data is updated under this cost element:
Valuated actual costs
Calculated costs
For the calculation of work in process, the valuated actual costs and the calculated costs are only used for internal purposes and do not require separate cost elements. All that is needed is a technical results analysis cost element.
Results Analysis
In results analysis, the following results analysis data is updated under this cost element:
Valuated actual costs
Calculated costs
Capitalized profit
Calculated revenue
Revenue in excess of billings
Revenue surplus
Reserves for imminent loss
Creation of reserve
Usage of reserve
Value adjustment
Results analysis data calculated by the
POC method such as:
POC Profit increase
POC Profit decrease
POC Loss creation
POC Loss cancellation
POC Loss realization
Other cost elements
Valuated actual costs for complaints and commissions
Variances in variance calculation for collective orders
The results analysis cost element for the results analysis data is only for internal purposes, so you don't need to create a separate cost element for each piece of results analysis data. You only need a technical results analysis cost element. -
Differance amoung the Valuation Methods for Result Analysis
Dear All,
In SAP Product Cost Controlling ther are 3 types of Cosings
1. Production Cost by Order
Path:- Production Cost by Order ---> Period end Closing ->WIP->Defind Valuation Method for( Actual Cost)
2. Production Cost By Period
Path:- Production Cost by Period ---> Period end Closing ->WIP->Defind Valuation Method for ( Target Cost )
3. Production Cost by Sales Order
Path :- Production Cost by Sales Order ---> Period end Closing --->Defind Valuation Method for Result Analysis.
Note: Here the point is Valuation Methods ( 1 to 17 ) availabel in Production Cost by Sales Order only. The Valution Method is very important to Calculate WIP. Different Countries follows different methods, but in the By Order and By Period we can get these Valuation Methods. What would be the reasno behind this.
RegardsDear All,
Any one have any ieda -
Hello All,
I need to know whether there is direct relationship between POC and RA? Is it necessary to maintain all the config settings for POC if I want to do RA for a Project ? or can RA be done independently of POC?
Thanks in advance
SarangRA cannot be done with out POC
POC is an essential requirement to calculate the accruals and deferrals
There are various RA methods which basically calculate the POC
eg
Cost based -> POC = act cost/ plan cost
Rev based -> POC = act rev/ plan rev
Statistical -> POC can be entered manaully using statistical key figures
Progress Analysis -> POC is based on value from Progress Analysis - you need to set this up if you are using Progress analysis
So basically you can do RA without Progress Analysis to calculate POC. The determination of this depends on your company's financial policies and regulatory requirements in the country you are operating
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