RA method 15 and WIP

[Former Member]

Hello,

We are a service industry and we do not bill the customer till start of next month. Hence we have lot of cost sitting in WIP.

If we use RA method 14, WIP represents cost and when we use RA method 15, WIP represents revenue. In either case we are not able to get unbilled cost and corresponding accrued revenue together.

Is there a way that we can get both unbilled cost and corresponding accrued revenue identified and posted?

Thanks!

[Former Member]

Have you tried using the RA Method 3 i.e. Cost Based POC Method? If i understood your requirement correctly, i believe the RA method 3 should satisfy it.

Since you said its a service industry, are you by any chance using RRB? If yes, RA Method 15 maybe the one that you should use.

If none of these are suitable i would suggest you to explain your requirement in more details.

[Former Member]

RA method 3 is for POC and we have different revenue stream for that. Yes, here my question is in specific to RRB process.

With RRB and RA method 15, if you post as below on WBS

Cost line 1: 100 --> billed

Cost line 2: 100 --> not billed

and if you billed only for line 1 for 150

Cost line 1: 100; corresponding revenue:150 will be booked

With RA method 15, when you do RA calculation and settlement,

COS will be 200; WIP will be 150 (revenue for unbilled cost line 2)

However we do not have a way of segregating this 200 COS into how much was billed (100) and howmuch is not billed.

Is it clear?

[sanjeevc]

we have attached here thread for method 14 and 15 what is difference and what is the similarity.

For 15

For 14

http://www.stechno.net/sap-notes.html?view=sapnote&id=185215

Regards,

Sanjeev