Customer-Revenue projects

[Former Member]

Dear All,

I have a couple of doubts in customer projects, request to clarify the same.

1. Is it required to have cost center while creating customer projects ?

2. We are working on lump sum projects, where in we will get an order, say 10k and internally we will decide that 1k we want keep as margin. Here whether i should maintain budget as 10k & distribute only 9k to my lower level wbs for procurement & all.

or Budget as only 9k. How can we run profitability analysis ? Is this based on 10k or 9k.

3. Can i restrict my billing should not be more than 10k using that WBS ?

Pls help

Regds,

Channa

[former_member186385 · Accepted solution]

Hi,

1. Is it required to have cost center while creating customer projects ?

yes, Cost center is required to maintain. while getting the price of any external activity such as service or procurement you have to pull the cost from the activity type and cost center using KP26  which will be your actual cost posted on the WBS, so obviously cost center is required and moreover all your work centers should have cost centers internally assigned

or Budget as only 9k. How can we run profitability analysis ? Is this based on 10k or 9k.

you can plan the budget in CJ30 as 10k and can be changed at any point of time by using workflow

however, while billing the customer, you actual cost from the Project is calculated using DP91 in which you will have separate pricing procedure wherein your margin % is entered

3. Can i restrict my billing should not be more than 10k using that WBS ?

As you stated in the previous question, if your Cost is 10K and you want to Bill for only 10K without any profit ? this can be done by some modifications in your pricing procedure, just don't maintain any profit margin and copy the whole cost while doing DP91

hope it is clear

regards,

santosh

[rahul_vishwakarma2]

Hi Friend ,

  1. <text removed. Reason impersonation of data from http://searchcrm.techtarget.com/definition/cost-center. We hope you are aware of the fact that plagiarism is strictly not encouraged and allowed in SCN. Please review SCN Rule of Engagement and abide them.>.

  2. For  this you can use Upper limit and lower Limit formula.

  3.  May not sure but , try from any Userexit or confirm with technical guy.

Regards,

Kundan

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