Cost Based POC for RA

[Former Member]

Hi Experts ,

One of the  requirement in our project is  to use Cost based POC and this was decided by our finance team and i have gone through the sap help about this and it valuation method and it  all it required is to have the Planed costs, Planned revenues and Actual costs in the projects..Keeping aside the planned costs and Actual costs, how  de we acheive the planned revenues...s

Our projects are not linked to Quotations,sales order ..

Do we have to  just manually plan the revenues in CJ42 or some sort of Billing plans just to have planned revenues in the project...?

Experts please suggest....

Regards

Judy

[sanjeevc · Accepted solution]

Hi,

CJ42 and CJR2 is for revenue planing and always use version as cost planing version as 0 default.

Regards,

Sanjeev

[Former Member · Accepted solution]

Hi ,

Of the two CJ40 and CJR2  which is better for Planning revenues from an POC perspective ....

Regards

Judy

[Former Member · Accepted solution]

Hi Judy,

In CJR2 you are planning revenues for individual cost elements or cost element group with WBSE. 

In CJ42 you plan revenues for the complete project or individual wbs element. There is no need to provide cost elements in CJ42, you can just capture your planned revenues for WBSe.

Post actual revenues using transaction KB41N (Manual reposting of revenues).

So better go with CJ42.

Thanks,

Sudhakar

[Former Member · Accepted solution]

Hi Sudhakar,

Thanks for your reply ..

Doing revenue planning in CJ42 will not provide data to KKA2 for result analysis..

I guess it must be only through a combination of WBS and cost element...

I have to analyse this thoroughly ...basically the requirement is to have Planned revenue for RA and secondly you did mentioned that KB4N for manual posting of revenues..Why do we have to post the actual revenues....

Is this required ?Because for Cost based POC Calculation , all we need is Planned revenue, actual revenues and Planned costs.

If you read my post clearly..the project is not linked to Sales order ..

Please suggest..

Regards

Judy

[Former Member · Accepted solution]

Hi,

As you said in your post, for Cost based POC we need planned revenue, actual revenue and planned cost.

I said KB41N, the purpose of this transaction is used to repost revenues whereby the original cost element is always retained. This function is designed mainly to adjust posting errors if any.

Coming to other apprehension about CJ42 will not provide data to KKA2, the rason must be structure planning we are not using any cost element while revenue planning. I am not sure in this case as I have been using SO all along.

In that case you can use CJR2 for revenue planning as this is being doen referencing cost eleemnt then it will also provide information to run KKA2.

Thanks,

Sudhakar

[Former Member · Accepted solution]

Hi ,

Thanks for all for their valuable comments and closing the thread .

Decided to go ahead with an iterative testing process in the system that best yields to suit to the requirement of Standard Cost Based POC for RA.

Thanking all for their valuable inputs..

Regards

Judy

[Former Member · Accepted solution]

Judy,

Running RA without ever posting actual revenue doesn't make sense from an accounting standpoint.  If you are posting revenue some other way and RA can't see it the calculations and postings will be wrong.

The reason for running RA is to adjust the revenue recognized in a period based on some criteria (POC in your case).  Say at the end of a period you are 60% complete (for POC this 60% is calculated from Actual Costs / Planned Costs) then GAAP says you are allowed to recognize 60% of your planned revenue.  What RA does in SAP is compare this calculated revenue to the actual revenue and adjust the accounts so the P&L is correct.  When the project is complete RA will allow you to recognize all of your revenue. 

Ken

[Former Member · Accepted solution]

Hi Ken ,

Many thanks for your response .

The clients requirement is to calculate the Cost of sales for a project which is not integrated with Sales documents .In otherwords , no actual revenues (Even considering the direct revenue postings) using POC .The project will have Planned revenues,planned costs and actual costs..

Regards

Judy

[Former Member · Accepted solution]

Judy,

Push back on this requirement or make them dig deeper.

You said they want to calculate the Cost of Sales, but in the POC RA method the Cost of Sales is simply equal to the Actual costs.

Good Luck,

Ken

[Former Member]

CJ42 is good for revenue planning. However please keep the version of revenue planning same as that cost planning which you are using.

Regards,

Mahendra