Collective RA across project and contract

[Former Member]

Dear,

We have a typical service industry requirement where we create a service contract with the customer, but in order to be able to service the customer, we first need to do some activities (project), like preparation etc. The project only has costs as not invoiced to the customer, the contract holds all revenues. Anyone knows how to solve this kind of requirement w/r results analysis / matching costs & revenues: ideally we would charge all service costs and revenues on the project and execute results analysis there, but this is obviously not possible ....

txs, Koen

[Former Member]

Hi

The scenario can be addressed using Result analysis.Although project is having cost and can not been invoiced to the customer until the service contract is completed, you can still recognize the revenue out of it in advance. You can go for cost based POC method.. where the revenue recognition would be based on the planned cost and the actual cost incurred. Go through the documentation provided by SAP ...it will give you the idea about suitable method for your business needs.

http://help.sap.com/saphelp_47x200/helpdata/en/90/ba6f85446711d189420000e829fbbd/content.htm

Regards

[Former Member]

Hemant,

Txs for the answer, my doubt is though whether I can do results analysis over the 2 together, i.e. both my wbs as my contract line need results analysis (as they are billing items), I would then need to settle for both the actuala and planned numbers to 1 other 'summary' WBS, not defined as a billing item (as the invoicing occures through the service contract), where I need to run results analysis based on the sum of the actuals and planned figures of both the original wbs and contract line... do you think this will work? txs, Koen