How POC is calculated?

[former_member269100]

Hi PS Gurus,

Question1:

Can anyone share me how Planned POC and Actual POC are calculated for Cost Proportionality measurement technique please?

Question2:

Our project structure is only up to the WBS element level, we don't have activity and networks. We also don't have Milestones on our structure. We plan cost against WBS element and we want to have some sort of progress reporting and analysis for our projects. Given this scenario, what is the best project progress measurement method/technique for us to be used? I'm thinking the use of Cost Proportionality might be appropriate, hence the question above.

Thanks in advance for your help.

Aloy

[Former Member · Accepted solution]

Hello Aloy,

In cost proportionality method

POC = Actual cost/planned cost.

Calculated revenues = POC*planned revenues

In profitablility analisys "calculated revenues - Actual cost = result (profit or loss)"

In financial accounting " Calcualted revenues - Actual revenue = inventory"

In this the system calculates the revenue on the basis of actual costs incurred up to the current period.

One should have planned costs and revenues to use this method.

A profit or loss is reported if actual costs are incurred - even if there in no revenue.

Hope this helps

Thanks,

Srihari.G

[former_member203108]

Refer this for cost proportionality http://help.sap.com/saphelp_erp60_sp/helpdata/en/b4/ba853488601e33e10000009b38f83b/frameset.htm

[Former Member]

Hi,

Quest 1:

Planned POC = Value of Work planned

Actual POC = Value of Work actually done

POC = Activity carried out / Total activity Planned

Quest2:

You can use WBSE to Track POC. In WBS Detail screen Under Progress Tab POC can be maintained.

All POC related data you can get in CNPAWB - progress analysis Workbench.

Swapnil Kharul