WBS Settlement with revenue

[Former Member]

Hi PS Experts,

I have 1 simple question as follow.

I understood I can charge the costs in WBS.  The cost can be finally settled using tcode CJ88.

[Example]:

Settlement

________________________________

Cost Center 100 |       WBS  100

Here is my question.  If the project also generate some income (Revenue). 

We also  post both revenue and costs into the WBS like below.

Cost 100

Revenue 120

Net 20 then what will happen when I run CJ88 to settle WBS?

1.  Cost -20 will be posted into Settlement Cost center ? (Net)

2.  Cost 100 will be posted into Settlement Cost Center?  (Revenue is just ignored)

Thank you in advance for your kindly reply!

Best regards,

[Makal · Accepted solution]

Check with your CO consultant, whether CO-PA has been implemented or not?

If yes, then you settle your revenue generating project to PSG.

If not, ask them where do they want to settle the project?

Regards,

Amaresh Makal

[Former Member · Accepted solution]

Amaresh and all,

Thank you for all your valuable inputs.

So, give me final answer.  Anybody who answer my query with closed end answer will be marked as answered.

1.  CJ88 cannot settle revenue (Correct?)

2.  Since we are activating COPA, revenue will automatically settled to COPA when biilling doc is posted.

Thanks!

[Makal · Accepted solution]

1.  CJ88 cannot settle revenue (Correct?)

It can settle revenue, provided you give correct settlement receiver. In this case it is Profitability Segm

2.  Since we are activating COPA, revenue will automatically settled to COPA when biilling doc is posted.

If you activating COPA, then It'll get settled the moment you run CJ88 (It could be either manual or you can schedule a background job).

I'm sure you are running RA (KKA2) to determine the cost of sales, revenue etc... before running settlement.

Regards,

Amaresh Makal

[Former Member · Accepted solution]

Hi Jiro,

Agree with Amaresh...

In customer project, usually result analysis is carried out before settlement.Settlement settles only those objects for which result analysis has been carried out.

Result analysis calculates revenues by period along with balance & reserves and settlement will settle the values that is determined to a settlement receiver       (usually it is profitability segment) if COPA is activated.

If the revenues affecting the result is different from actual revenues, then difference will formed either revenue surplus or inventory from which revenue can be generated depending upon whichever amount is greater.

In addition please also refer below thread discussed on scn showing WBS settlement approach when PA is not activated.

http://scn.sap.com/message/9897111

Regards

Tushar

[Former Member · Accepted solution]

Tushar,

Hi, Thank you for your supplementrary information.

I am not sure if we are using Result analysis key.

What I don't understand is that When we post revenue, since we define default PA segment in

OKB9, the revenue will be automatically transfered to COPA even if we put WBS element as cost

object.  If WBS and PA are there in billing document, is WBS posting become statistical?

Or COPA become statistical?

Sorry if I am asking silly question.  Please allow me as I am not familiar with PS module.

Thanks

[virendra_pal · Accepted solution]

The use of RA functionality is not mandatory

Settlement to PSG will work with or without use of RA

[Makal · Accepted solution]

RA is not mandatory.

Without RA also you can do settlement.

[sanjeevc · Accepted solution]

(If you don't want RA before settling Cost/Revenue) then RA is not mandatory for settlement process.

Regards,

Sanjeev

[Former Member]

Agree with Mahendra - I think you should be settling to profit center or profitability segment.

Regards

Shrikant

[former_member203108]

Profit center is not a settlement receiver only profitability segment is.

[Former Member]

I think it will be better if you try youurself and share results with us!

I think revenue settlement to cost center is not possible in std SAP,so it is likely that it will follow step 2. However please check with CO consultant for more information.

Regards,

Mahendra