Revenue Recognition in Project System

[Former Member]

Hello All,

At my current client, they are using the Project System (i.e. WBS) only for Cost and Revenue collection. POC,RA,Milestone billing,Network, Activities are out of scope. Keeping the above thing in mind, I need to know how I do the Revenue recognition thru WBS.

Mu understanding is that If I assign a WBS element on a Sales Order line item, as an account assignment it should collect the Revenue. The only requiremnt should be that WBS should be a billing element and Cost/Revenue profile should carry SD relevant settings. Once the billing is done and invoicing is done, the Revenue should appear against the WBS on running the report S_ALR_87013563/64/65/66.

Please let me know if this will work or do I need to do some more configuration from PS perspective.

Thanks

Sarang

[Former Member · Accepted solution]

Hi Sarang,

1. Mark WBS as billing element.

2. Assign the sales order line item to the WBS in point 1 or any WBS below that in the hierarchy.

3. Create a billing plan for the sales order line item.

4. The billing plan amount would appear as planned revenue against the WBS element (provided no credit hold useVKM3 to release).

5. Once the line item has been billed ie. Billing document has been created using VF01 or VF04, the Actual revenue would appear against the WBS element.

In terms of Config:

Creat a planning profile that allows Automatic Revenue planning form Sales Order (tcode: OPSB)

Ensure that the planning profile is attached to your project profile (Controlling tab) (tcode:OPSA).

Please let me know if this helps.

jibat

Edited by: Jibat Sankar De Sarkar on Jan 21, 2009 2:49 PM

[Former Member · Accepted solution]

It worked as per the expectations.Thanks. Points awarded