revenue recognition through RA

[Former Member]

Hi CO and RA Gurus

Does any one know how to do Revenue Recognition using Result Analysis Keys.

thanks

KT

[Former Member · Accepted solution]

Hi,

Result Analysis:

Overview:

The objective for calculating Work in Process (WIP) is to determine the value of manufacturing activity in process at the end of a fiscal period, during a fiscal period and to properly reflect this value on the financial statements. WIP calculation is a facet of Results Analysis (RA). RA is a specialized tool within the controlling module that computes and analyzes the value of WIP. The terms WIP calculation and RA are generally interchangeable.

Results analysis is used to:

a. Calculate the inventory value of finished and unfinished products in a non-valuated project stock or non-valuated sales stock environment or

b. You are using a valuated sales order stock or valuated project stock and want to capitalize goods that have been delivered but not yet invoiced.

The difference between SAP and other systems is in the treatment of material consumption for manufacturing. Component issues to production orders, run schedules, WBSs, etc is immediately treated as an expense to the P&L statement. The issue is not treated as a reclassification from raw or semi-finished inventory to WIP inventory. SAP considers WIP to be a snapshot of values that can be computed on demand and passed to the general ledger as required to re-class the values to the balance sheet. This process demands a specific, methodical approach to be used for period-end and mid-period processing. Rules used to calculate the value of WIP and settle WIP to the G/L are defined in multiple RA tables depending upon the requirements of the company. RA is designed to support a variety of calculation techniques and there may and are alternate settings depending on the demands of the company. To support the configuration, scenarios and unit testing need to be thorough. RA needs to be configured towards the middle of the of the implementation with subsequent testing. This will allow for configuration of the data needed to support WIP and RA (chart of accounts, production orders, projects, cost centers, cost elements, etc.)

Configuration Transactions:

OKG1 u2014 Create Results Analysis Key

OKG2 u2014 Results Analysis Version

OKG9 u2014 Results Analysis Version

OKGC u2013 OKGD u2014 Valuation Methods

IMG SPRO u2014 Define Line IDs

OKGB u2014 Define Assignment Mapping by incoming charges by cost element to line IDs

OKG5 u2014 Define Assignment Mapping by incoming charges by cost element to line IDs

OKG4 u2014 Define Update

OKG6 u2014 Define Number Ranges

If your done with RA configuration and posted actual cost,plan cost and plan revenue.

you can calculate revenue recognistion using KKA2 T.code for projects.

Hope this helps you.

Thanks,

Rau

[Former Member · Accepted solution]

Hi Rau

Thanks for your reply. It was useful. I have a specific requirement.

If I want to use RA through valuated sales order can I do it. Since valuated sales order do not hold cost how do you think I can do RA and settlement.

I am aware tha non valuted sales order hold costs and revenue and you can perform RA and settlement.

but how will you achieve this through valuated sales orders through RA Keys?

thanks

Kumar

[Former Member · Accepted solution]

Hi,

Please check this link.

http://help.sap.com/saphelp_bw33/helpdata/en/90/ba6f37446711d189420000e829fbbd/content.htm

Hope this helps you.

Thanks,

Rau

[Former Member]

Hi guys do you know what should be the settings of RA for doing POC method (revenue recognition point of view).

KT