Project Plan Cost with PR and PO

[Former Member]

Have a question on Project Plan cost  with PR and PO.  I created a PR from NWA with $1000. Then converted PR to PO with $500.00 .

Until a PO is created, the PR amount is considered a commitment and plan 0 costs.  After the PO is created the PR is not longer a commitment, the PO is the commitment.  However, even after the PO is created, the Plan O is still the PR amount.

How can I see the Plan 0 value with PO amount? Settings in Costing variant?

[Former Member · Accepted solution]

Make sure the Closed indicator (on the Quantities tab) is set on the PR.  If not, the system considers the balance on the PR as still to be placed (meaning it is still an open commitment).  When the PR has been closed the commitment goes away as well.

This should be done when creating the PO.

[Former Member]

Rightly Said Mr Gokul

Reservations, Purchase Requsitions generated at activity give rise to Planned cost

Purchase Requsition  give rise to PR Commitments

Purchase Order Give Rise to  PO Commitments

GR/iR Give Rise to Actuals

is the document flow is  Reservations -->Purchase Requsition --> Purchase Order --> Goods Receipt

Then The Cost Flow would be Planned -->Purchase Requsition Commitment-->Purchase Order Commitment-->Actuals

Please Correct me if  i am  Wrong

[Former Member]

Thanks to all. I am aware of the cost flow.The Standard reports like CJI5 , Budget/commintments /actaul everything work fine.

I have a issue in this scenario based on my requirement.

In my client we are copying the Plan cost in version 0 to another version. If the PR or plan cost value not getting updated with PO value, the total planned cost is overstated.

[Former Member]

After Version 0 is copied to Version XX, Version XX does not change.  PR and PO changes will be reflected in Version 0.

[Former Member]

Hi Ken,

Thanks. I will be copying the Version 0 , once I have the PO value in version 0 instead of PR value.

[Former Member]

Hi,

This is standard behaviour of the system. You created a PR for 1000$, then you converted it into a PO for 500$. At this point in the system 500$ will be show as PO commitment and the other 500 will be show as PR commitment. In addition to this the 1000$ will be shown as the planned cost.

Remember, PR commitment is recorder against value type 21 and PO commitment is recorded agianst value type 22. And all plan values are recorded against value type 1. There is nothing to worry. I feel you are having some misunderstanding.

Regards,

Gokul

[Former Member]

Hi

May i know to Which Report are you refering to and by Plan O  do you mean plan Overall?

I did not get it . Please elobrate a little