Construction Issues

[Former Member]

Hi All,

My client is an Ifrastructure Developer, the issue here is as follows:

We treat construction of a building (with 10 appartments) as a project, this project has got 11 WBS at level 1. The first Level 1 WBS (lets call it Construction) will have sub WBS which will cover the cost for all the project, and the other 10 WBS elements represent the 10 appartments.

Every month end the cost on the Construction WBS will be settled proportionately to all 10 WBS for appartments.

Any Appartment when booked for sales, the sales order is created with acct assignment of that respective WBS. Everything works properly after this - RA / Settlement etc.

Issue is when out of these 10 appartments, 2 are not sold but are completed - customer wants to place them in Inventory - ie quantity and value.

Is it possible or is there any work around ?? its MTS + MTO scenario without BOM.

Thanks in Advance

Sandeep GHAG

[Former Member]

If I am not wrong in understanding your requirement you intend to find a linkage of RA calculated towards WIP, be somehow linked to WBS elements (apartments) that has not been sold. I beleive if your configuration for RA and its transfer to FI is all accurate; upon settlement to finished account you may be able to draw the WBS assignment in the FI settlement document.

Best of Luck !!

[Former Member]

Treat the completed appartments as Finished goods so that you can sell them to customers.

And can you please explain the logic behind the kind of project structure you are using?

Multiple WBSEs at level 1 ????

Regards,

[Former Member]

Example:

Construction L1

Land Acquisition L2

General Development L2

Sub-Structure L2

Super-Structure L2

Water Connections L2

Electricity Connections L2

Interiors L2

Apartment 01 L1

Apartment 02 L1

Apartment 03 L1

Apartment 04 L1

Now the WBS - Construction will incur actual costs in terms of labor, material etc (from the Level 2 WBS like Land Acquisition / General Development etc) - this cost will be settled periodically to every Apartement WBS proportionately.

Only the WBS for Apartments will be Billing Elements and Sales order for every Apartment will be created with Acct Assignment for individual WBS Apartment. RA will be run for every Apartment WBS that will be sold out.

Now the issue is can we show the Apartment (Finished Good) as inventory incase it is not sold ??

Regards

Sandeep GHAG

Edited by: Sandeep Ghag on May 26, 2009 2:05 PM