Results analysis and settlement for projects with Sales Order

[Former Member]

Hi Costing Gurus,

We are implementing SAP for ECO business in ECC 6.0 with SD, FICO and PS modules and we have contracting jobs which will run for longer periods. we are planning to POC method based on actual cost and Progress billing methods in projects. my understanding is that Reasults analysis will be used to calculate the WIP, Reserves, Losses etc.. however revenue has to be recognized using sales and distribution module with (SD-BIL-RR) component. How ever i have started testing this scenario in test system and i have couple of clarifications and seeking some help from experts to correct my understanding.

i have below questions.

1. KKA* . results analysis only calculates the amounts (WIP, reserves, losses etc.) or it can update the accounting.

2. i found from the blogs and online documents FI posting only happens through settlement and it specifies the Profitability segemnt should be used as receiver in Project . is it madatory to use profitablty segemnt. as we are not implementing COPA can i use any other object and what would be the impact of it.

currenty i have selected update RA key and i could find no FICO documents created with that.

3. Do i need to use Revenue recognition in SD along RA in controlling to get my accrual posting for recenues. RA can only serve Cost part of the project or it can Revenue accrual also ?

Seeking expert suggestion on this.

Thanks

Murali

[Former Member · Accepted solution]

Hello Murali-

To answer your questions,

1. When you perform Results analysis, it does not post any accounting documents. Results analysis only does calcuation of WIP etc and when you do corresponding settlement like CO88(production order) or VA88 (sales order), it will post accounting entries.

2. It is not mandatory to have profitability segment as a receiver. If you are using COPA, then you would need to settle it to COPA in the end. For example in case of make to order environment, sales order can be used as a cost object and hence the receiver would be a sales order where all the costs would get settled.

Hope this helps.

Shail

[Former Member]

Hi ,

Thans for the quick reply.

I have couple scenarios.

Milestone billing for projects with sales order. my assumption is cost(actual cost and wip calculation) should be handled through Results analysis in CO and revenues must be handled through revenue recognition funtionality in SD module.

again for progress billing with sales order the same rule applies with different method in RA and revenue recognition.

Regards

Murali