Planned and Actual Costs against WBS

[Former Member]

Hello,

At my current client, I have a requirement where I have to define some cost elemnts and assign value categories to them. The VC are for example - Removal Cost,Capital Contribution Cost.

These Cost are some type of advances and are paid by customer before the project starts (sort of downpayment)

My questions are as follows:

1.How do I post Plan Cost against WBS for such costs? In detailed cost planning we can plan againts Primary cost elements and I have assigned secondary cost element to Value Categories.

2.How do I post actuals for such costs?

3.Can these costs be posted/planned as negative costs, as the payment is received in advance and should be subtracted from total costs?

The main ponint is that the client dont want these cost as Revenues.

Please suggest if anybody is aware of some alternate solution for this.

Thanks

Sarang

[virendra_pal]

Value categories is for reporting.

The planning and posting of actual costs should be against the respective cost element and this would update the value category accordingly

Yes you can post negative values in cost planning and actual posting for the cost element if you do want to show revenues.

[Former Member]

Thanks Virendra,

So do I need to do Detailed Cost Planning against cost elements ? Also in this case we the CE is primary, so the CE assigned to Value Category should be Primary (Am I correct in assuming this?)

Secondly how do I confirm actuals. Is FB50 the only way for confirming actuals on WBS or do i need to use some general costs activity?

Thanks

Sarang

[virendra_pal]

detailed cost planning is also one of the ways to carry out planning and should be OK for you - yes for primary cost elements that should be fine

when you say confirming actuals not sure what you mean - basically as you release your project the actulas cost will be posted from various transactions (I am listing the primary ones)

goods issue/ goods receipt

invoice receipts - if there is difference between PO quantity and invoice value

any variation postings

direct journal entries

there will also be secondary posting for actuals like time confirmation and allocations - for this I suggest use any primary cost element for planning in your detailed plan

[Former Member]

Thanks again.

By actuals I mean that the cost is planned against a particular WBS, which is not having any activity,material against it. So there is no question of confirmation/GR etc.

I just have this cost (actual revenue, which may be against a SD order or not) in negative. In such a scenario, if i receive some payment from customer, how do I confirm the same on WBS (without any activity/materials under that WBS). Thats the reason for asking FB50 transaction or do i need to have some General cost activity?

Thanks

Sarang

[virendra_pal]

By actuals I mean that the cost is planned against a particular WBS, which is not having any activity,material against it. So there is no question of confirmation/GR etc.

you can still ocnfirm time via CATS against WBS and do GR against WBS even if you do have any activity

I just have this cost (actual revenue, which may be against a SD order or not) in negative. In such a scenario, if i receive some payment from customer, how do I confirm the same on WBS (without any activity/materials under that WBS). Thats the reason for asking FB50 transaction or do i need to have some General cost activity?

you should be able to do FB50 against WBS, for negative value against cost element, if the posting is against a revenue element then the WBS might have to be ticked as billing element, getting from SD is best practice not mandatory, also cost activity is not required - in your case you do not seem to need networks

[Former Member]

Hi virendra pal,

In my project, as you told the actual cost will be shown if there is any goods receipt/issue. i have assigned the material to a wbs element thro MB1C and checked with MBBS transaction, the stock and the cost is updated. but it is not showing in the PPB or in report.

What could be the reason? please clarify.

Regards

Sankar

[Former Member]

hi sankar,

try to run CJEN so as to update project information database and again re run the repot ...

regards

pushpa

[Former Member]

solved..