Results Analysis: WBS settlement approach when PA has not been activated?

[Former Member]

Greetings all,

We need to implement RA for our revenue projects in PS, but Profitability Analysis (PA) hasn't been activated and may stay that way. Is there any other suitable settlement receiver in this case?

One cannot settle revenues to Cost Centres.

Settling to revenue Orders may(?) remove costs from PS costs reporting and one would need an order per profit centre.

Setting to GL? (is this plausible? how?)

I thought of settling to SD order item, but item is account assigned to project for cost/revenue reporting in PS and I don't think SAP then allows settlement back to SD item as a cost bearing object?

Any ideas please?

Could PA be activated very simply (without a large implementation effort)?

Thanks in advance...

Charles.

[virendra_pal · Accepted solution]

This is a possible scenario and can be set up in standard SAP

You do not need COPA for RA and generally for revenue project I would not settle

Create a settlement profile with not for settlement with all receivers set settlement not allowed

Assign settlement profile to project profile

Now run RA to calculate revised accruals and deferrals

Run settlement to post the calculated accruals / deferrals to FI

[Former Member · Accepted solution]

Thanks Virendra, this works fine.

I had based my approach on the assumption that if settlement is run there would need to be a receiver and didn't imagine that making the WBS element N/A for settlement would still allow SAP to post the RA-FI postings. ALL documentation I could find on PS-RA (extensive searches) involved PA.

Thanks again,

Charles.

[Former Member · Accepted solution]

Hi Virendra,

I see that the FI posting is purely FI and doesn't have any corresponding CO documents. The origin for the PC document is '1' (PC), and the P&L GL accounts for the RA-FI auto postings were not allowed to have CO costs elements linked and don't have CO account assignment to project. This means that the project reports don't reflect any RA adjustments. The RA reports also don't show values per period, RA doesn't seem to post line items (report is blank - config?) and it's not possible to know what's been posted to FI (settled) per project (RA calculated versus posted to FI).

We ideally require to see the RA actual posting against the project as a line item. Is this configurable - have I missed something?

Regards,

Charles.

[virendra_pal · Accepted solution]

The posting should be really FI - that is the correct and standard financial accounting approach - and right in SAP as well.

Why should you see it in the line item - it is not a cost to the project - the actual costs are already seen on the line item, infact in some calculation methods the actula costs are used to calculate these accruals / deferrals

This is merely an adjustment for the financials, you can the use RA reports to see these.

If you add them to the line item then you will need to exclude these from the line item when you want to see the actual costs

[Former Member · Accepted solution]

Yes, this makes complete sense, thanks. The business is just used to seeing WIP on custom reports as they were stuck with an AUC solution to try and manage WIP on customer projects. We are now changing this.

More important to me is how one knows what RA data has been settled to FI and what hasn't? Are there any std checks to ascertain whether there is unsettled RA data per period? Otherwise the FI postings aren't going to sum to the total of the RA reports. Or is this left up to following a strict period end process?

Thanks, Charles.

[virendra_pal · Accepted solution]

This is where you need to implement strict month (period) end process

Reason - had you used COPA then we could have monitored unsettled components, but you have a no settlement required scenario

Also you should ensure that the RA calc run is and there are no errors to ensure all FI calcs are included in settlement