RA with Method 07- POC Method on Basis of Project Progress Value

[Former Member]

Hi Experts.

Have anyone done the RA with Method 07- POC Method on Basis of Project Progress Value

Have some issue while running RA.

Thanks

PS Consultant

[virendra_pal · Accepted solution]

what is your issue?

[Former Member · Accepted solution]

The issue is while running the RA, System calculates the Cost of sales as POC*Planned Cost.

Also I have a Cost Element created for Progress Analysis and Unable to see the planned POC in reports.

What I am getting is the Aggr. Plan based on the Method I used in WBS and activities.

sapps

[virendra_pal · Accepted solution]

system is doing as expected based on planned cost, but you change

go in expert mode and change the valuation basis to actual costs and try

[Former Member · Accepted solution]

Hi Virendra,

Thanks for the input. Nope doesn't help. When I set actual cost in valuation , System consider Actaul cost as planned cost too

When you use RA with Method 07- POC Method on Basis of Project Progress Value, I have to use the simple mode.

[virendra_pal · Accepted solution]

Hi Suresh

Sorry but it is very difficult to check all the related config via this forum you need to get specialist help.

Regards

Virendra

[Former Member · Accepted solution]

I agree Virendra. Do you mind if I contact through your gmail?

SAPPS

[virendra_pal · Accepted solution]

based on the data you have provided the RA based on standard SAP method 7 is correct and as expected the cost of sales is calculating as designed.

you need to explore other settings in expert mode

[Former Member · Accepted solution]

Hi Virendra,

I tried exploring the RA config and think only possibility is the user exit KKAG0005 and make actaul cost to post as cost of sales.

Please advise.

psconsultant

[virendra_pal · Accepted solution]

yes that could be an option

need to set a debugger and check if KKA2 picks up

then see if you can change value as desired for cost of sales before posting

[Former Member · Accepted solution]

Thanks again. I was going through the SAP documentation.

SAP says with Progress RA has the following consequences:

u2022 The revenue affecting net income is calculated by multiplying the percentage of completion by the planned revenue.

u2022 The cost of sales is calculated by multiplying the percentage of completion by the planned costs.

The first point is what I am looking for.. and don't need the second one .

If this is the std. SAP with Progress RA, how system make RA postings?

suresh

Edited by: psconsultant on Oct 6, 2008 2:47 PM

[virendra_pal · Accepted solution]

the second is the change you need to make using KKAG005 or any other available exit !!

obviously SAP std is not what you want

[Former Member · Accepted solution]

I do understand Virendra.

As far as my client is concerned second is not an option. Otherwise how SAP make RA postings..

I mean the progress RA.. does it post cost of sales as poc*planned cost:?

[virendra_pal · Accepted solution]

do not understand what you mean by second is not an option.

Please note that with progress analysis and then using POC for RA the calculated cost and revenue using KKA2 will be

planned revPOC and planned costPOC

the posting by RA is done uisng transaction CJ88 based on the OKG8 accounts

posting value for cost (defer or accrue) =

calculated cost - actual cost

= planned cost*POC - actual cost

if calc cost is greater than actual cost then defer else accrue

When the project is TECOed then only actual cost will be posted and all previous postings will be reversed

[Former Member · Accepted solution]

I just tried the RA by TECO my WBS

I could see Only actual cost everywehere.

Is that the normal method?

[virendra_pal · Accepted solution]

that is correct once the WBS is TECOed then only actual cost will be there as there is more calculated cost requirement and there is nothing to accrue or defer - job is completed no WIP

again the system behaviour is correct as expected

[Former Member · Accepted solution]

OK . So what's the impact of updating the user exit KKAG0005 to make actual cost posted in RA as cost of sales.