Revenue Planning to cost elements

Question

Hi,
I am Working on Project system object.
When i am trying  planned revenue is added on the project, I need to find if there is a way to assign the revenue amount on the lowest WBS to a cost element. This is required for revenue amounts to appear in costing reports. CJ42 is used to add planned revenue manually.

Answer 1

hi anuradha,
Revenue Planning
Use
Revenue planning can be necessary when you perform results analysis on a sales order item and use a results analysis method that uses the planned revenues to calculate the results analysis data.
Features
The net value (revenue) for sales-order-related production is determined in pricing in Sales and Distribution (SD). Pricing depends on specific conditions which you maintain in Sales and Distribution.
A particular customer orders a particular quantity of a product on a particular day. The variable factors – customer, product, quantity ordered, date – determine the final price for the customer.
The system uses the conditions you specified to calculate the gross price at which the customer is invoiced; any discounts applying to the customer, for example; and other values such as freight charges and tax.
Pricing is controlled by a pricing procedure which is selected through the sales document type. Price elements such as prices, surcharges and discounts, freight costs and taxes are saved in Sales and Distribution as condition types. The pricing procedure determines which condition types are used and the sequence in which they are calculated in the sales order.
Condition Types
The standard system contains the following condition types that can be used in connection with unit costing, product costing, and preliminary order costing in assembly processing:
Condition Types for Pricing
Condition Type
Meaning
EK01
Cost of goods manufactured (CGM)
EK02
CGM (statistical)
EK03
Fixed CGM (statistical)
Condition type EK01 is mainly used for cost-plus contracts in which the sales price depends on the expected costs.
Condition type EK02 is mainly used when the sales price is a market price and the expected costs are only used for informational purposes.
Condition type EK03 offers the capability of transferring the fixed costs of a cost estimate into the conditions.
The costs are transferred from the cost component view Cost of goods sold into the condition type.
The above-mentioned condition types must be of category Q. Whether a condition type of category Q is only used in pricing as a statistical value or for price calculation is controlled in the pricing procedure.
The condition type is created in Customizing for Sales.
The condition type can be selected as follows:
Through the sales document type
Condition types EK01 and EK02 are specified in the CndTypLineItems field in the sales document type.
Through the requirements class
This enables you to define different condition types for different sales document items of a sales document.
Condition types EK01 or EK02 are specified in the CndTypLineItems field in the requirements class.
Condition type EK03 is specified in the CondTypLinItFix field. You can only use condition type EK03 in conjunction with the requirements class.
Planned Revenues
Revenue elements from the SD pricing procedure that are not statistical are updated as planned revenue on the sales order item that carries costs and revenues, and can be viewed in the Product Cost Controlling Information System. Sales deductions can also be assigned to revenue elements through account determination, and updated on the CO object for the sales order item.
The condition type is selected through the sales document type.
Condition type EK01 is selected for sales document type TA (standard order). This means that the value from the cost estimate goes directly into pricing. A surcharge is calculated from this value and the net value for the sales order item is calculated.
Condition type EK02 is selected for sales document type TA (standard order). Pricing is carried out on the basis of condition type PR00. To maintain this price, choose Logistics ® Sales/distribution ® Sales ® Master data ® Prices ® Material prices and enter a material price. The material price is updated under condition type PR00, while the values from the cost estimate are updated under condition type EK02 and can be used for informational purposes.
Actual Revenue in Product Cost by Sales Order
Use
In Product Cost by Sales Order, actual revenues are updated to the sales order item that carries costs and revenues at the time of invoicing.
Integration
You can view the actual revenues in comparison with the planned revenues and costs in the Product Cost Controlling Information System at any time.
You can settle the costs and revenues that are updated to the sales order item to a profitability segment in Profitability Analysis (CO-PA) during period-end closing for Product Cost by Sales Order. When you perform results analysis, the results analysis data are settled to CO-PA.
The processing in Product Cost by Sales Order therefore differs from the processing in Product Cost by Order or Product Cost by Period (make-to-stock production and with a valuated sales order stock without a sales order item that carries costs and revenues).
If you perform this type of product cost controlling (such as in addition to Product Cost by Sales Order), then in Product Cost by Order or Product Cost by Period the revenues from invoicing are transferred to CO-PA.
If you are using the cost-of-sales accounting in Financial Accounting (FI) and are using a valuated sales order stock, you do not need to perform results analysis in order to transfer the cost of sales to FI. The cost of sales is transferred to Financial Accounting at the point of the goods issue posting.
Prerequisites
To ensure that the revenues are displayed on the sales order item, you must create revenue accounts and possibly sales deduction accounts as primary cost elements of cost element type 11 (revenues) or 12 (sales deductions). Make the necessary settings in Customizing under Controlling ® Overhead Cost Controlling ® Cost and Revenue Element Accounting ® Master data ® Cost Elements.
To be able to settle the costs to Profitability Analysis, you must make the necessary settings in Customizing for Profitability Analysis. Make the necessary settings in Customizing under Controlling ® Profitability Analysis.
Features
Billing
Billing invoices the customer for the goods and services delivered for a sales order.
In Sales and Distribution, you create an invoice (billing document) on the basis of a reference document. In order-related billing, the reference document is the standard order or the delivery document with delivery-related billing.
The data such as prices and quantities are transferred from the previous documents into the billing documents. The price can be calculated in the following ways:
Using pricing on the basis of conditions (such as material or customer)
On the basis of the incurred costs if you want to use resource-related billing
When you enter a billing document, the system proposes a billing type depending on the reference document.
The billing type determines the following:
Which pricing procedure is used for account determination for Financial Accounting
Whether the invoices are passed immediately to Financial Accounting
Account assignment is controlled by the following parameters:
The chart of accounts
The sales organization
The account assignment group of the customer (in the Account group field in the Invoicing screen of the customer master record)
The account assignment group of the material (in the Account assignment group field in the Sales 2 view of the material master record)
The account key in the pricing procedure
thanks
karthik
<REMOVED BY MODERATOR>
Edited by: Alvaro Tejada Galindo on Apr 15, 2008 3:10 PM