WBS settlement with Result Analysis Key

[Former Member]

Hi PS expert,

Ok, here is my requirements from business people.

We have project for making custom specification equipment for selling. 

We are charging costs such as materials, labor, and expenses to WBS.

Now every month, we settle those costs charged into WBS.  We have scenario here.

1.  If the equipment is still under construction, we will settle the cost into WIP account. (Credit WBS)

2.  If WBS status is completed, we will reverse WIp account and settle all costs which have been transfered to WIP to P/L account.

How can I implement this in SAP?  My collegue said I can use RA key and WBS settlement profile in combination.

Please give me step by step configuration or setting in SAP because I am suck at SAP (But I like it though).

Thank you for your cooperation!  Waiting for your kindly answer..

Begards,

[Former Member · Accepted solution]

Hello Jiro,

Below are the steps in RA config which you can check with the help of FICO consultant.

1. Create a result analysis key (OKG1)

2. Define de result analysis versions for the key (OKG2)

3. Maintain the valuations methods for the versions (OKG3)

4. Define the line ID’s and the cost elements relevant for RA ( OKG5)

5. Define the updates for RA (OKG4)

6. Setting the posting rules for settlements from RA (OKG8)

Please refer sap help for more info on RA.

Also please refer threads on Result analysis which has been already discussed.

http://scn.sap.com/message/13576924#13576924

http://scn.sap.com/message/13535435#13535435

Regards

Tushar

[Former Member · Accepted solution]

hi Tushar,

Thanks a lot for your reply!

I checked the configuration.  It seems this can fullfil my requirement #1 out of 2.

1.  If the equipment is still under construction, we will settle the cost into WIP account. (Credit WBS)

2.  If WBS status is completed, we will reverse WIp account and settle all costs which have been transfered to WIP to P/L account.

Assuming I have done the configuration for both RA and WBS settlement profile. (and assign RA key and settlement profile to my WBS), then what will actually happen when I run Result analysis (KKA2) and WBS settlement (CJ88)?

My expectation is...

Assumption

1. Result analysis key Z000001  is configured to post  PL:4299999999 (misc expense) / BS 1130440000 (Work in process)

2. WBS Settlement profile is configured to settle the cost to GL account 4200459000 (non operating expense) .

3.  Assign Result analysis key and settlement profile above to the WBS element 100000.

3.  Costs are allocated from various cost element and cost center to 4299999999 (misc expense) with WBS 100000.

Before WBS status become REL.

KKA2 -> Will create posting   1130440000 (WIP) / 4299999999 (misc expense) with WBS 100000

CJ88 - > nothing happen

After WBS status become TECO.

KKA2 -> Will reverse all posting made before.  4299999999 (misc expense) with WBS 100000/ 1130440000 (WIP)

CJ88 - > create posting 4200459000 (non operating expense)  / 4299999999 (misc expense) with WBS 100000

Do you think my understanding is correct?

Thank you in advance for your kindly reply..

[Former Member · Accepted solution]

Hello Jiro,

I think your understanding is partially correct.

No actual posting will happen without WBS status becoming REL.

As soon as the WBS element has this status, you can assign actual costs and revenues to it. Subsequently, results analysis can valuate the WBS element on the basis of actual costs, actual revenues, or actual quantities. The standard system draws on the valuation basis of "Maximum of planned costs and actual costs, planned revenues".

Putting WBS status to TECO will erase plan value, WIP and reserves as you are not expecting further invoice. As soon as this status is set, no further changes to planned values are possible. Further (unplanned) costs then have a direct effect on profit. The standard system draws on the "Actual cost, actual revenues" valuation basis in this phase. The planned data is ignored; the result is the actual revenues, less the actual costs.

As Gokul mentioned, please take help of CO consultant when doing RA configuration. If you dont have CO consultant, try testing above scenario once and check if you get desired results.

Regards

Tushar

[Former Member · Accepted solution]

Hi Tushar,

Thank you for your reply!I acually tested this scenario in SAP.  But still some question remains.

This might be silly question for you , but after posting some expenses in WBS to which the RA key I created has been assigned, I run KKA2.  But it seems this transaction does not create any FI document as I expected.  Do you think the transaction I used is correct to create WIP document?

Regards,

[Former Member · Accepted solution]

Hi Jiro,

KKA2 is transaction code used to run result analysis. Result analysis is component of SAP that allows you to valuate costs and revenues for long term projects. RA can be used to calculate WIP, Cost of Sales, Create reserves for unrealized costs for imminent losses for these objects.

Just ensure that after you run KKA2, you should be saving this data.

Regards

Tushar

[Former Member · Accepted solution]

Hi, Tushar,

I just come to realize that after KKA2 and save the data, when I run CJ88, some actual posting happen.  Here is the test result in SAP.

1. Create WBS 2000001 with result analysis key assigned (Released).

2. Post FI document for expense (USD1000) to WBS 2000001

3. Run RA using KKA2.  -> Save

4.  Run CJ88 -> Following FI document created.  Dr:  WIP account  / Cr: PL account (with no cost element assigned)

5. Complete the status of WBS 2000001 (TECO)

6. Run RA again.

7. Run CJ88 ->  Following accounting entry created.  Dr: accountPL account (with no cost element assigned)   / Cr: WIP

I think this SAP flow is partially fullfilling requirement.  But I have following question.

-  In #4 and #7, since PL account for RA cannot have any cost element, I think still there is no WBS settlement happen at all, thoughout the entire process above.

Before the completion of WBS, I think the accounting entry is perfectly correct.  But finally (when WBS status become completed), I would like to settle WBS amount to other PL account.

Unfortunatly nothing settled in CJ88  when WBS is completed. 

How would I in this case, settle real WBS cost to PL account?

If I can resolve this, the goal is almost there I guess....

Need a good help on this!

[Former Member · Accepted solution]

Hello Jiro,

Please check if you have defined posting rules for settlement to FI in OKG8 correctly.

OKG8 is the last configuration step of RA config. In this step, we need to specify G/L accounts

where the calculated RA data will be settled. You need to enter two accounts here.One for P&L

and other for balance. Also you need to specify accounting principle.

Regards

Tushar    

[Former Member · Accepted solution]

Tushar ,

Yes I have Configured OKG8.  That is why the posting #4 and #7 have been made when I run CJ88.

My question is how we can finally settle WBS in CJ88? 

My observation is that previous posting made using RA key (# 4 and #7) is not settleing WBS - but just creating FI posting only. (No CO document is created)

Thanks

[Former Member · Accepted solution]

Jiro,

For Final settlement, please use settlement Processing type as " Full settlement" in CJ88.

I would suggest you to post this querry in Financials forum if you dont have CO consultant.

Regards

Tushar

[Former Member · Accepted solution]

umm.. Tried full settlement option.  Still did not work..

Any help?

[Former Member · Accepted solution]

The error I got is this.

There are no accrued amounts; settlement is not possible.

Message no. KD256

Diagnosis

The sender has a results analysis key, but no accrued values.

Either the accrual was not yet started for the sender, or the values to be settled from the accrual equal zero.

Note

Actual costs are only settled once the sender is technically completed or finally delivered.

This applies to

• Projects that cannot carry revenues

• In Service Management for sales order production to the indicator (Calculate WIP for orders in sales order production) set in the accrual version for

• Production orders

• Internal orders with no revenues

• Orders with no revenues

• In Service Management for engineer-to-order production to the indicator (Calculate WIP for orders in engineer-to-order production ) set in the accrual version for

• Internal orders with no revenues

• Orders with no revenues

• In Service Management to the indicator (Calculate WIP for internal and service orders with no revenues) set in the accrual version for

• Internal orders with no revenues

• Orders with no revenues

• To the indicator (Calculate WIP for production orders without settlement to material) set in the accrual version for

• Production orders without settlement to material

Procedure

1. If necessary, start the accrual calculation for the sender

2. Restart settlement

[Former Member · Accepted solution]

Please refer SAP note # 179533 at below mentioned link

https://websmp230.sap-ag.de/sap(bD1lbiZjPTAwMQ==)/bc/bsp/spn/sapnotes/index2.htm?numm=179533

Error that you are getting is explained very well in this SAP note.

Additionally, check RA configuration in OKG8 for RA category " RUCR" and in OKG9, set

" Transfer to Financial Accounting "

Regards

Tushar

[Former Member · Accepted solution]

Hi Tushar,

Thank you for the note.

After reviewing and checking all the setting according to note, I realized that

KD256 is caused by the fact really no amount posted in WBS in that particular period.

I wonder if my operation is ok or not.

1.  Create WBS with RA key assigned

2.  Release WBS

3. Input some FI posting to WBS

4. KKA2 - result analysis

5. CJ88 - post dr WIP / cr PL

6. Set the WBS status TECO

7. KKA2  - Result analysis

8. CJ88 - Post reverse like PL / WIP

Is this operation ok or not?

[Former Member · Accepted solution]

Hi Jiro,

Check CJI3 report and see if there is any balance in the WBS.

If you want to close WBS after settlement getting completely executed and there is no balance,

then follow below steps.

1. Set WBS to TECO

2. Run KKA2

3. Run settlement CJ88 (Running KKA2 & CJ88 will clear WIP)

4. You can then close WBS.

Regards

Tushar

[Former Member]

Hi,

Apart from what Tushar has mentioned above, i would strongly suggest you to involve your CO consultant when you do the RA configuration. Without your CO consultant it would be a bit tricky to do these configurations.

BR,

Gokul

[Former Member]

hi Gokul,

Thank you for your suggestion.  Yes, that is what i am facing now. 

However, since this part is assigned to me, I need to somehow configure and test this implementation

by my own.  If i feel this requirement is way too beyond my capacity, I may propose different option to the client.  (This is not mandatory requirement but nice to have one)

If you may also have idea, please post any solution.

Thanks!