Budget for Revenue

[Former Member]

Hello Gurus,

I am creating a project which is for revenue as well as for expenses.

I have assigned the budget to Expense WBS and It's working correctly. Say for 10000 Rs assinged budget system throwing error when exceeding the amount.

But when I am assigning activities under Revenue WBS , as budget is not assiged to it , system won't allow me to save.

My revenue is not fixed. So how can I process further ???

Umesh

[Former Member · Accepted solution]

Dear Ravi,

I am making change in std key PS01. So for that my all internal activities having control key as PS01 , no cost will be captured ?

What we are following (mentioned flow in earlier post ) is right ??

Please guide so that I will closed the question.

Thanks

Umesh

[Former Member · Accepted solution]

Dont change the Std Key.Copy the Std Key and create a new one with Cost indicator unchecked.

[Former Member · Accepted solution]

I am doubtful with this step,

According to monthly confirmation we are making Sales Order which is atttached to WBS element and doing invoice

You are saying you are creating a sales order after the execution of work.I dont know How Business will accept this?

My Process mapping would be sale order creation> Project Creation>assign WBS to Sales item >Execution of work> Resource Related Billing of Sales order.

[Former Member]

Dear Anjali,

2000 Rs/ Day is my revenue. So I am assigning it as activity under revenue WBS.

I will tell u the scenario which we are following.

We are creating 5 WBS elements.

1.Revenue

2. Expenses

3. Consumables

4. Equipments

5 HR

Among these we have machines like X ray machine which we are using for clinet place and 2000 Rs/ Day is unit price for that machine.

So what we are now doing is making these as activities and assigning these to Revenue WBS.

Monthly we are confirmaing these activities and running CN48N.

According to monthly confirmation we are making Sales Order which is atttached to WBS element and doing invoice.

Under the expense WBS, we are raising service PO say e.g. vehicle service etc. For this we need budgeting.

For confirming revenue activity , we need work center and activity type. If I have not assinged activity type then warning comes but I am proceding further.

So despite of warning shall I proceed further ??

Is this a right way ??

Umesh

[Former Member]

Yes, you can proceed despite warning.

But if you want to avoid this warning.You can define a control key for such internal activities(under revenue WBS) in OPSU with Costs indicator unchecked.

[Former Member]

Hello Ravi ? Anjali,

My simple requirement is I want budget only for expenses. Another thing is my revenue element is getting cost due to Activity Type and KP26.

I want cost only for expenses. I dnt need any cost to be generated either by HR WBS (which is for WF planning) or Revenue WBS.

So when I confirm any activity below Expense WBS, cost will not be generated. So how to do it ?

Because as no cost is generated with these WBS's , I can assign budget to expense WBS.

Please guide in this matter.

Thanks in advance

Umesh

[Former Member]

Hi,

As you mentioned earlier that you have activity for 2000/day and u r confirming this activity. Can you not use a milestone here instead of activity ? You can put actual dates dates for milestones in order to show 1 day completion.

Kindly let me know if this works ?

Anjali

[Former Member]

Hello Ravi,

I am in service industry. So 2000 Rs/ Day activity is nothing but my revenue. I am taking payment from cust for that. So I have name it as Revenue WBS.

I already told u @ billing. So is it possible to use only Dummy work center through IR01 , not CNR1 and in KP26 price as 0 Rs.

With this I can confirm activity on daily basis suppose for 1 day , means this machine is used for 1 day. At the end of the month I will run CN48N and will create Sales Order according to activities confirm.

Please guide

Umesh

[Former Member]

Instead of defining zero price in KP26, why can't you avoid the costing Tab page in work center.Also you have the option of selecting specific tab pages for your work center category.

[Former Member]

Hello Anjali,

Thnx for reply.

I am assigning activities as "Internal X-ray Machine which is used for 2000 Rs/Day". If used for 30 days I am now confirming this activity for 10 days and making Sales Order which is attached to WBS element for 10 days.

For this I have made dummy work center. Plan cost for an activity depends upon work center and activity type.

So how exactly you are talking about assigning plan cost to an activity ?

Like wise I am creating 10 activity for 10 diff rates and Uom and assigning this to Rev. WBS.

Regards

Umesh

[Former Member]

Hi,

As you rightly said, plan cost for activity comes from workcenter and activity type. So if you have dummy workcenter check if the cost center and activity type brings 0 cost. I guess somehow system is getting some costs.

Alternatively You can also try to use milestone for the same purpose.

BR

Anjali

[Former Member]

If you have cost incurring activies of this project under this WBs element,Why do you name it as Revenue elemnt?

If you dont want the cost not to get generated, you can use planning of statistical key figures against this revenue wbs element.

[Former Member]

Hello Anjali,

I am creating only 3 WBS under project defination.

1. Revenue

2. Expenses

3. Consumables

All these are 2nd level WBS elements. So I want to assign budget only for Expense WBS.

Which hierachy you are takling about ?

I have created user statuses also. But they will not act as controlling unit against WBS budget.

Please help me out.

Umesh

[Former Member]

Hi,

If you dont Plan any cost in activity, it will surely let you add the same even if its not budgeted. The availibility control works on expenses. It compares the expenses against the alloted budget . But since ur Revenue WBS is not having any costs it will not effect.

I tried the same and it worked absolutely fine.

Which activity and with what parameters are you tring to assign to Revenue Wbs ?

Regards,

Anjali

[Former Member]

Hi,

System will not allow you to save only if those activies are having some planned costs. However always the revenue wbs is higher in hierarchy to which total budget is assigned and expenses wbs is below it.

There is no budget for revenues. Budgets are only for expenses. You may either change the hierarchy, or you may inactivate the budget control using user status for that particular WBS.

Hope this will help you.

Regards,

Anjali