Result Analysis and Settlement

[Former Member]

Hi all,

Hi can anyone send me some notes regarding the result analysis and settlement.

In have run the Result analysis for a project, not sure what to do next.

Somesh.N

[Former Member]

Hi,

Result analysis is used to compute Revenue recognized and Work in progress, whereas Settlement settles these values calculated in Result analysis.

Depending on Policy or Business PracticeRevenue is recognized which is not same as actual billing.

Costs are computed which are not same as actually incurred.

SAP has defined 15 methods of revenue recognition.

Some important Revenue Recognition methods

a) Percentage of completion (POC) based on ratio of Actual Costs to Planned Costs.

b) Percentage of completion(POC) based on progress % as entered by Project manager.

c) Completed Contract Method

Revenue Recognized only when WBS status is set to TECO(Technically Complete).

During Release status Billing Amount is transferred to Revenue Reserve and Costs transferred to WIP.

If Actual cost is > Calculated cost, then Actual cost-Calculated cost is Work in Progress(WIP).

Calculated cost is the cost that should have incurred.

Actual cost is the cost that has already incurred.

Actual cost - Calculated cost is thus Work in progress.

On the other hand if Actual cost <calculated cost then

Calculated cost -Actual cost = Reserve for Unrealized cost.

In settlement these figures calculated are actually posted.

Thanks

Calculated cost

[Former Member]

Hi Nidhi,

Well thanks for your explanation. It has helped me indeep.

I have gone through the Seimens notes, but these have not been discussed in detail. If possible can you send me some notes related to this topic covering all the revenue recognition methods etc with examples ( of possible).

In my scenario i am running for service orders assinged to my project. Thus i want to close the order completely with the costs.

Kindly help in what ever way you can.

regards

N.Somesh

[Former Member]

There is enough explanation on Help.SAP. Please refer below link.

http://help.sap.com/saphelp_47x200/helpdata/en/90/ba7048446711d189420000e829fbbd/frameset.htm

Venkat

[Former Member]

Hi,

Can you check what are those 4 objects, WBS, network or activities,,

And have u written settlrment rule at WBS level or Activity level or both?

[Former Member]

Hi

Here the settlement profile has been configured for the WBS element and if i am not wrong does settlement to profitability segment.

Regarding the four objects not sure, cause it does not provide me the details.

Well i havet worked on this anytime and thus have little idea on how it works, eventhough could run the RA analysis and the settlement rule.

Can you help me out in more precise flow of the works, so that i can figure out where i am goin wrong.

N.Somesh

[Former Member]

Hi,

After result analysis, settlement needs to be done , if necessary settings like Allocation structure , settlement profile has been done in Config..

[Former Member]

Hi

Settlement profile has been configured.

When i run settlement CJ88, the report gives me 4 objects in "NO CHANGE". I do have some planned costs and actual costs.

I am not sure what am i missing.

Somesh.N