RA thru Valuation Method 07 and its inexplicable settlement
Hi, I have run RA and Settlement with Valuation method 07 and seen the results. But postings to COPA is perfect but Finance postings are in reverse. Let me explain and request you to support me with your valuable inputs. The Actual costs is 1000 whereas the planned estimate is 2000. The Actual revenue is 1200 whereas the planned revenue is 3000. The POC is 45%. Hence, while doing RA, the system has given the result that the calculated costs is 900 and hence WIP is 100. In the case of Revenue, the calculated revenue is 1350 and hence 150 is revenue in excess of billings. This is quite ok. But when it comes to settlement, the change in WIP accounts is debited and WIP account is credited with 100 instead of change in WIP account is credited and WIP(BS a/c) is debited. In the same way, the Rev in excess billings(P/L ac) is debited 150 and Res for excess billings(BS a/c) is credited. My copa postings shows the revenue of 1350 and cost of 900 and a profit of 450. But the income statement shows loss of 50. The 250 goes to the debit side instead of credit side of the income statement. It is quite inexplicable. Regs!
Edited by: Ashok Singh on Apr 24, 2009 5:09 PM