Wrong value of Plan POC

[Former Member]

Hello Gurus,

I am carrying out POC calculation on activity using cost proportional method.

The basic start date is 03.03.2011 and basic finish date is 20.04.2011 and normal duration is 35 Days.

Based on this, activity has 21 working Days in march and 14 working days in April.

I am expecting the value of plan POC for march as 60% (21 / 35) but I am getting it only 51.25%.

The similar thing is happening for most of the activities in my project.

I am not understanding the logic behind system calculation.

Request you to please help me understanding possible causes.

BR / Parimal

[Former Member · Accepted solution]

Hi Parimal,

Just a cross-check........in CN41 have you checked the planned cost vs duration/work in Period Drilldown?

Can you check what values you get there-for correlating the planned cost and work taken under consideration for the period March.

Thanks and Regards

[Former Member · Accepted solution]

Hi B P Singh,

Thanks for your suggestion...I checked as per what you suggest.

There I am getting work break up as 38.857 HRS in March and 41.143 HRS in April.

Cost is with multiplication of rate maintained for that work center (in KP26)

Here itself we can see, it is not getting divided proportionately because working days in march are more than in April. Still work distribution is suggesting more work in April than March.

To cross verify, I reproduced another case (Activity) in which 15 working days each are maintained in March and April.

There also I am getting work break up as 36.67 HRS in March and rest in April. It should be ideally 50% in March and April.

There seems to be some problem either with work center or plan cost settings. I have checked it throughly but didnt get anything.

Can you suggest which parameter could create such problem.

Anyway thanks for patiently responding to my queries and providing valuable inputs

BR / Parimal

[Former Member · Accepted solution]

Hi Parimal,

Are you using a self-defined Factory Calendar or some standard country factory calendar?if its a standard calerndar then can you please specify which Country calendar is it?

Thanks and Regards

[Former Member · Accepted solution]

Hi,

I am using Factory Calender 01 German (Standard)

BR / Parimal

[Former Member · Accepted solution]

Hi Parimal,

A suggestion-can you just schedule your project/wbs /network once again and save and again have a look at the results.

Thanks and Regards

[Former Member · Accepted solution]

Hi,

Actually I have made a constraint "must start on" on the activity and it is not looped in relationship. So re-scheduling do not have any effect on it.

However I also tried re-scheduling on another activity.

But still same problem persists, it didnt worked.

BR / Parimal

[Former Member · Accepted solution]

Hi All,

This problem gets resolved.

The reason was unusual definition of period by accounts.

At my client side, the period is defined till last sunday of the month. That means March, period 3 is defined till 27 March instead of 31 March. Thats why all work an cost related calculations are based on this. If we calculate by this logic, figures are correct.

This is quiet unusual but thats how it is been practiced here.

Anyways thansk a lot for your interest and support in my problem.

I am closing this thread.

BR / Parimal

[Former Member]

Hi,

Thank you very much for your interest in my problem.

I agree to what you say...

But in any case result is going to be same.

I have an activity with work center, the cost planning is done based on labour hour rate maintained in activity type of work center (46 EUR / HR)

This activity has work of 80 HRS, so total plan cost of an activity is 3680.

Now this activity has normal duration 35 days (scheduled 3rd Mar to 20 Apr). Calculation key is maintain manually so there is no relation with work and duration.

Based on this, per day cost of activity comes to 105.1429 (3680 / 35)

Means in March, it should be 2208 (21 days * 105.1429) as against total of 3680.

Hence I am expecting plan POC in March, period 3, 2011 as 60% (2208 / 3680) but I am getting 51.250%

I am failing to analyse this.

Please help me out to solve this problem

BR / Parimal

[Former Member]

Hi Parimal,

Can you please check up the number of days you are using for calculation?I am not aware of the calendar you are following,but my observation is- If you are getting the normal duration as 35 days then the working days in March should be less than 21.I would suggest you to please count up the working days against the calendar and recheck the results.

Thanks and Regards

[Former Member]

Hi,

I have already checked calender. It is 5 days working and no holiday in march.

So starting from 3 Mar till march end counts to 21 Days is correct.

BR / Parimal

[Former Member]

Hi,

Are you getting this amount as plan value for this activity on cost plan reports ???

regards,

Sam L

[former_member203108]

Run "planned cost for each month" report and see what is the planned cost for march and april. and calculate the POC manually for each month based on this report information and check whether the calcualte POC value matches with CNE5 report

[Former Member]

Hi Sam,

Thanks for your reply,

You have made very valid point...

I am getting value 1787 as plan cost in cost report for month of march instead of 2208.

With this 1787 cost, POC report is correct. But I want 2208 as plan cost as per logic explained above.

Still I could not able to understand system calculation behind value of 1787

Can you pl suggest which parameters should I check

BR / Parimal

[Former Member]

Hi,

Even with the value 1787 for the month of Amrch,planned POC is almost 48.56% and not 51.25% as you are getting from the system-why do you say that POC calclated is correct with the planned cost for the month of March as 1787?

Thanks and Regards

[Former Member]

Hi All,

I was getting value 51.25%, but I implemented note specifying correction program to correct POC values.

Now I am getting plan POC 48.5% which is correct refering to monthly plan cost report.

But I am not getting, how system is calculating 1787 as plan cost for the March.

It is not evenly distributed over the period of 35 working days.

Now my worry is not a POC, but monthly plan cost itself.

Pl suggest the possible reason

BR / Parimal

[Former Member]

Hi

As per one of your above messages this activity is planed for 80Hrs but activity expands accross 35 dyas(is it correct???), check the work center settings that defined working hrs of a dys...

caluclate plan cost for month March as( 😃 number of Hrs per day * 21*per hr rate & calculate plan POC value with it.

regards,

Sam l

[Former Member]

Hi Sam,

I checked that...

I have 8 Hrs work per day and rate is 46 EUR / Hour

With that Plan cost for March comes to 7728 (82146) and similarly, in April, it comes to 5152.

But still it doesnt match.

The problem is with monthly plan cost...it is not approtioning equally amongst total number of days (i.e.35)

BR / Parimal

[Former Member]

Hi,

If the work hours are 8/day then 80 hours would correspond to 10 working days(8*10=80).

As such how is the system calculating the duration as 35 days I am not able to get.If 80 hours work is done in 35 days then one day's work should be 80/35=2.286 hrs.But you say that 8hr/day work has been defined in the Work Centre.

I would again suggest a thorough check of the activity details and factory calendar used.

Thanks and Regards

[Former Member]

Hi,

As hilighted by B P Singh, your calculation & configuration is having contradictions,

Regards,

Sam

[Former Member]

Hello,

I have kept calculation key on activity as maintain manually which means I can freely define work hours and duration.

There is no relation between work hours and duration in my scenario.

The total work required to complete an activity is 80 Hrs, but as per schedule, it is to be completed in 35 days.

Its not like work center wherein once an operation started, has to be completed untill it finishes.

The responsible department needs to process this activity in 35 days or 80 HRS whichever is earlier. Not necessary that they will work on this activity everyday complete 8 HRS.

This is standard SAP provision and moreover, I have tested same scenario in another system where it works fine as expected (plan cost apportioned equally over specified period of time).

I am just not able to locate the difference between the two even after thorough comparison between them.

BR / Parimal

[Former Member]

Hi Parimal,

Why are you expecting the Planned POC as 21/35 based on days? In Cost Proportional method the Planned POC shouild be (Planned Cost upto the period under consideration)/(Overall Planned Cost).

This is as per my knowledge.Can you check if the values match as per this criterion?

Thanks and Regards

[Former Member]

Hi All,

I am consistently getting 8 % less value of plan POC than expected.

I am not understanding why it is coming consistently less than expected

Request you to please guide me on this issue as I am stuck up.

BR / Parimal

[Former Member]

Hi,

Did you run CNE1 for March for Progress version that you are using on your activity ??

& also make sure to have some plan cost on that activity.

Regards,

Sam L.

[Former Member]

Hi,

Thanks for your reply.

I have plan costs for an activity and I run CNE1 for march, period 3.

I am getting proper values of actual POC but not getting proper value of plan POC.

Pl suggest solution on the same

BR / Parimal