Prepaid RA with Quantity Based Method

[salim_shakir3]

I have a scenario in result analysis as follows:

1. The customer pays the full amount at the start of the project (prepaid).

2. Before we incur costs this billed amount has to be deferred.

3. Once we start booking T&M to the project we would recognize the revenue based on a POC method.

4. We want the POC method to be quantity based. e.g. Planned hours divided by actual hours

How do we configure this scenario?

[Former Member]

Check this note,

SAP Note 765748 - Results implementation for hours worked

Hope its useful.

[salim_shakir3]

Gokul - I have done the config as per the this note but my scenario is qty with prepaid. Quantity part is taken care as I am getting POC based on planned hrs vs actual hrs after deploying the enhancement which is mentioned in the note.

Virendra - I have to use quantity based POC method as we need POC based on quantities

[Former Member]

Hi Salim,

You should be able to use the standard RA methid 05- Quantity-Based POC Method

OR

Use the Method 07 POC Method on Basis of Project Progress Value Determination and adjust the Progress version so that the POC weighting should be Work

psconsultant

Edited by: psconsultant on May 23, 2011 10:56 AM

[salim_shakir3]

i new about this note hence awarding you. it was a very good answer. BTW i have configured quantity based POC and prepaid scenario...

Thanks for the help

[Former Member]

I would be a great gesture and would be appreciated if you could share what you did to achieve this.

[salim_shakir3]

Gokul - I used RA method 05 - Quantity based POC method. In expert mode refer SAP note number 765748, create a line id STD and assign category "K" and the unit of measure "Hours" to the line ID "STD".create a statistical key figure ABGMNG in trans KK01. then iImplement Note 544420 for corrections, Create the customer enhancement 2 (Note 26957).

The above is for qty based RA. Now for prepaid instead of invoicing the DMR invoice the main sales order during the first month. once you run RA and settlement the entire amount is deferred. from next month onwards the accruals will happen based on cost of sales with corresponding deferrals

Thanks

Salim Shakir

[former_member230675]

Thanks for sharing the solution Salim. Good Work.

Please mark this thread as answered so it will be helpful for others while searching for the solution.

Thanks

Abdul.

[virendra_pal]

Use the standard RA method 03 Cost based POC Method to accrue / defer the revenues (prepaid)