Orderbook, revenue and gross margin phasing

[Former Member]

Apologies if this is a basic question but I'm new to SAP. My aim
is to have clarity over future sales, gross margin, resourcing by making full
use of the orderbook (signed orders). What would be the best way to deal with a
contract of eg. €5m for ongoing work over 5 years. You have a signed contract
for this €5m but you will only receive requests for this work in small parts eg
100k at a time. I want to enter the €5m as orderintake and therefore build up
my orderbook in this fashion but I also want the ability to enter
projected/estimates of when these revenues, costs and gross margin will hit my
P&L account. So, I want to phase the revenues and associated costs over the
5 years of the signed contract.

What would be my options in SAP? I understand that you can use
this COPA module but are there any other options?

[jpfriends079]

SAP provides a standard functionality which can take care of accrual revenue know as Revenue Recognition.

Thanks, JP

[Former Member]

Thanks. How would I deal with costing so I can have more clarity over Gross margin estimates for particular projects? Essentially, I'd like to book an order with a certain estimated revenue, costs and gross margin and then illustrate when we estimate that this is likely to become actual revenues and gross margin.

[jpfriends079]

With revenue recognition you can have internal orders to take care of COPA part.

Thanks, JP

[Former Member]

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