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Logistics : PS
9 posts • Page 1 of 1
We are using RA in what should be a simple way. While the project is REL all costs should go to WIP and any and all revenues should go to Deferred Revenue. Once a project is TECO, all WIP should go to COGS and all Def'd Rev should go to REV.
I am using the POC method and have not made many changes to the SAP delivered.
WIP is working fine, costs go to WIP using RA Category WIPR and back out once TECO. RA calculates correctly and settlement works fine.
Revenue is beating me down... RA correctly calculates all REV as Revenue Surplus using RA Category POCS. BUT, settlement ignores POCS and does not move the revenue to Def'd Rev.
I added a posting rule (OKG8) for VLRV and when TECO the REV is moved out of Def'd Rev to Rev... but the original entry for Def'd Rev was never made so the account is out of balance.
I am confused as the RA Line item reports shows only POCS being calculated for Revenue postings. Is there another RA Category that I need to use to make the original posting to Def'd Rev??
Thanks in advance,
I am trying to understand your problem.
1) You are using Revenue based results analysis - method 01-Expert mode.
2) When you run RA , it calculates the following correctly.
POC = Ra / Rp
COS, Cc = POC * Cp
WIP = Ca - Cc
3) When you do settlement , WIP is settled to FI properly.
4) But when it comes to COS , you have a problem in settling to FI ?
Does this correctly describe your problem ? May be you would like to add details with an example to describe your problem.
Using completed contract method. RA Type: E (Revenue Based RA) and Profit Indicator: C (Completed Contract).
not using/worrying about planned values at all.
Want 100% of any revenue posted when in REL status to be posted to Def'd Liability account (Revenue Surplus). 100% of costs posted to be posted to WIP.
When in REL, RA correctly calculates Rev Surplus and WIP. POCS has 100% of revenue... WIPR has 100% of cost.
Settlement ignores POCS (Rev) and does nothing with it.
Settlement correctly posts WIPR to WIP account.
When in TECO RA correctly calculates 100% REV to Revenue and 100 Costs to COGS.
Settlement correctly uses VLRV to post FROM Def'd Rev to Rev (thus Def'd Rev is now out of balance). Also correctly posts from WIP to COGS.
I get the idea that I need to add a different RA Category to the Posting Rules (OKG8).
You are using RA method -09 - completed contract method.
How are your settlement distribution rules defined? Do you use source structure in the rules?
Are the line Ids for results analysis defined and assignment for line IDs defined ?
In RA posting rules for settlement to financial accounting , which RA category have you used ? POCS or POCI ?
First, thank you for your reply, here are the answers to your questions and then a comment that may help to solve (or create more questions)
In settlement (Allocation Structure) I have two Assignements (one for Revenue and a second for Expenses). I am NOT using Source Structures, but for each Assignment I have an individual source defined. One specifying revenue accounts and the second expense accounts. The two do NOT overlap.
Line IDs are created and assigned. As mentioned RA is calculating Rev Surplus and WIP correctly.
In RA Posting rules I have actually set up both POCS and POCI, both are ignored.
Now the comment which leads to a question...
In WIP RA the account I have defined in "Update of WIP Calculation and Results Analysis" (OKG4) is being used to calculate WIP and is being settled. These are set up as Category K in OKG4.
Yet for Revenue (Category E) line items the account defined in OKG4 is NOT being used, but the account from the Results Analysis Version (OKG2), called Technical RA Cost Element is being used.
Yes, I have tried to include the OKG2 account in the source of the settlement assignement and it does NOT work. Yet when I replace the account that is defined in OKG2 with the account from OKG4 (both are type 31 Ra accounts) the settlement actually works!
Here is the rub, in OKG4 I have 6 different line item IDs defined as the Def'd Rev has to be broken into 6 different 'receiving' accounts so that the income statement nets correctly.
My new question form all of this is why won't RA use the OKG2 account for the type E (revenue) when it does use such accounts for the type K (expense)??
OK, further research yields more questions. Reading some about the RA Version SAP tells me that the accoutns there (OKG2) are used for items that are not allocated to Line Item IDs and specifically lists: "Data for the POC method, such as calculated revevnue and revenue in excess of billings". Which is exactly what I am calculating.
I reviewed the RA line item reports and sure enough POCS is coming through WITHOUT a Line Item ID!!! Therefore it is picking up the OKG2 account.
This seems to tell me two things:
1- to use POC (Completed Contract) SAP wants to stuff all of the revenue into a single account (Won't work for me)...
2- Maybe I need to use a different Profit Indicator in the Valuation Method (OKG3) where I have indicated C for Completed Contract.
My business scenario surely seems to be a Completed Contract (POC) scenario, but if SAP forces me to send all of my Def'd Revenue to a single account that cannot be used.
Does Anyone have any experience using other 'Profit Indicators" so that Revenue Accounts used in RA come from OKG4??
I do not want to add to your confusion. Sometimes , it is trial and error with configuration until you get your desired results.
I was having a look at the bulding block config documentation for someother RA method. Nevertheless , some of the following settings in config , are worth a second look.
1. Define Line IDs
2.Choose New Entries and enter the following data:
CO Area Line ID Name
BP01 COP Primary Costs
BP01 COS Secondary Costs
BP01 REV Revenues
BP01 SET Settled Costs
2. In the assignment lines , you have to maintain the account range for COP, COS,REV,SET.
3. In define update for RA, need to maintain COP,COS,REV AND SET. Here no accounts for SET.
4. In WBS , need to maintain dist. rules for COP,COS,REV and SET.
May be you already know the above. I thought you might like to have a second look at your RA config .
Many thanks to everyone who has been contributing. A few things have come to mind.
Frist, sure enough my basic config was off and causing the settlement problem. so it is no longer an issue. The settlement is happening.
The problem still exists with the use of POC and our need to breakout Def'd Revenue by Line Item ID (LID). The SAP docs say that using POC means that SAP will NOT write Revenue Calculations to LIDs, instead it only used the single account defined in the Version.
Has ANYONE used RA to defer revenue? I am getting lots of WIP help, but that is working fine.
Also, does anyone have/created any documentation of the rules/calculations used by SAP in each of the RA Methods? I've looked everywhere (including the best SAP book ever written "Product Costing Made Easy", back in 1999( and don't see that level of information.
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