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 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.
Similar Messages
-
I have a question regarding Cost Based POC Method..
Example:
All costs on project incurred in January. We set status TECO on the project on 10th of February and post delivery and outgoing invoice. On 15th February we have settlement - period end closing for January. The system does not calculate RA because of the TECO status and only actual costs remain on project and are posted to COPA...In February revenues are posted to COPA.
In my opinion, system should calculate RA for january and cancel RA in february...the system does not check the date when status is set
How to do proper settings?
Many thanks,
BarbaraHi Barbara,
If you deal with Production environment you always have to be careful... The system will start to log a status information as time dependent for Result Analysis only on a going forward basis, so it will not impact your old projects.
I think you can setup a test in your QA environment to switch the function in the middle of existing project (result analysis) calculation life cycle and see if you need to move the status back and forward again to populate time dependency data.
Regards, -
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. -
How planned values to be determined in (03) Cost-Based POC RA calculation
Hi All
We are implementing (03) Cost-Based POC in our project . Pls guide me how Planned values flow to KKA2/KKAJ to determine POC %
Pls help me ASAP
Thanks
SnehaHi Srinu
Thank u very much for ur help. It is working fine . Also ls confirm on these
Planned cost : CJR2
Planned revenue : ?? ( Hope it is from Sales order)
Actual cost : ?? (Hope it is From MIGO)
Actual revenue : ??
Pls do the needful
Thanks
Sneha -
Results Analysis cost elements
Hello,
The Results Analysis saves the Results Analysis data under secondary cost elements. These cost elements can be determined thru assignment to Line IDs in the transaction OKG4 (OKGA) u201CUpdate of WIP Calculation and Results Analysisu201D, or they can be determined in the definition of Result Analysis Version (transaction OKG2 or OKG9) in the section u201CCost Elements: Results Analysis Datau201D of the Extended Control.
Could you please tell me when the system saves the Results Analysis data under cost elements specified in OKG4/OKGA and when under cost elements specified in Results Analysis Version in OKG2/OKG9 ? How do you control this?
Best regards,
RobertHi Sarada,
thank you for your reply.
However in Results Analysis Version in OKG2 I see the Technical RA Cost Element only in simplified control (Costs Elements Off). In u201CCosts Elements Onu201D control I see the following Cost Elements for Results Analysis Data:
1. Valuated Actual Costs
2. Calculated Costs
3. Capitalized Profit
4. Calculated Revenue
5. Revenue in Excess of Billing
6. Revenue Surplus
When are these cost elements used?
In my KKBC_KUN report I can see some of these cost elements (1 u2013 4), but with 0 values, whereas WIP and COS/Revenue cost elements assigned to Line IDs have positive valuesu2026
Robert -
Result Analysis - completed contracts (09) method
Hi All,
With standard SAP the RA completed contracts (09) method doesnt create reserves for imminent loss.
We would like to calculate imminent loss. using RA -completed contracts (09) method and any one customized RA method "09" and calculated imminent loss. ?
Any help is appreciated.
Thanks,
AnushaHi Sudhir,
We are using CCM method (09) and we can't calculate imminent loss with this method.
In SAP-Standard the RA method for completed contracts (09) creates no reserves for imminent loss (sap-note 602707).
I'm looking for some solution to calculate imminent loss using RA method 09.
If planned costs are greater than planned revenues (= Imminent Loss) and the WBS-element status is REL the system will automatically create a posting for imminent loss in FI and CO-PA. The amount of this posting will be planned costs u2013 planned revenues.If the WBS-element status changes to TECO those postings for IL will be automatically reversed.this what i would like to do.
could you please explain me RA configuration steps for above issue.
Thanks,
Anusha -
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 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 -
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, -
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, -
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 -
What is RESULT ANALYSIS,REVENUE RECOGNITION in PS
hi gurus
can any one explains me abt revenue recoginition and result analysis in Project Systems
thx
regards
maheshRA 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 -
Result analysis for sub-items on SD-order
Hello,
I would like to know, whether also the document flow for subitems is being checked while executing result analysis.
Example:
We have got an SD order, a higher-level item and a sub-item.
Both of them have assigned the same result analysis key. Within this key it is defined in customizing (OKG3), that the Sales Order Structure is A-"Summarize Plan and Actual Data of Subitems on Highest Item"....so the result analysis for the sub-item is being performg via the higher-level item.
The higher-level positions is already completed - the delivery is made and also the invoice is created.
The sub-item is not completed - neighter delivery is made nor the invoice.
While executing the result analysis for the higher-level item, the status FNBL (final billing) is recognized and all cost are settled from WIP to CO-PA.
As far as I know, the document flow should be checked withitn the result analysis and based on this the status should be recognized.
Therefore It seems, that only the document flow from the higher-level item is being checked. If also the document flow from the sub-item is checked, there would be no way to get the status FNBL as the sub-item is not complete.
Is it SAP standard delivered behaviour?
Thanks in advance
PeterThanks Waman,
I have tried to delete the result analysis key from the sub-item, but still the same result in result analysis...
Could you tell my the consequences from the 1A setup from the note? It is adviced withitn the note to not use the 1A setup. But we use this and it works fine. Just some messages during the result analysis, that it could not be performed for sub-items, but this has no influence on the values.
Regards
Peter
Edited by: Peter Jankech on Jun 9, 2010 8:57 AM -
Projects KKA2_ Results Analysis (Int. Orders/Projects)
Hi,
I have put the results analysis key under the control tab of a WBS element. When doint the KKA2 I am receiving the follwoing message.
I want to post WIP and have done all account settings. could anybody explain the process for this periodic processing of projects how to identify WIP.
I have posted via KB15 costs on this project and now I would expect the a WIP would be identified at this amount???
Thanks Ulrike
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.
Procedure
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.RA is specific to the period you run for... this is standard behaviour.
Regards -
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.
Procedure
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.
If you want to process the object:
In Customizing for results analysis, choose Period-End Closing -> Results Analysis -> Define Valuation Methods for Results Analysis, add an entry for this status, and specify how objects with this status should be processed.
If you do not want to process the object:
This message is inconsequential for you. No follow-up actions are necessary.
In Customizing for results analysis, choose Period-End Closing -> Results Analysis -> Define Valuation Methods for Results Analysis and select the No valuation indicator. This message is then no longer issued by the system.
Example:
In the standard system, there is normally no entry in the valuation method for the status CRTD (Created). You will therefore receive this message for objects that only have the status CRTD.Hi Guys,
I manage to run the RA. The problem why I could'nt get it right was because I did not run transaction MMPV to close period for material master
Thanks for your help.
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