RA calculation and hierarchical settlement

[Former Member]

Hello PS gurus,

I am working with multilevel project structure. Example: Network>3rd Level WBS>2nd level WBS>1st Level WBS (billing element).

Cost from Network are settled to 3rd Level WBS at first (via automatically generated settlement rule to attached WBS, as SAP defaulted standard).

But I am having issue transferring the costs from 3rd level WBS to higher level in order to have all costs on the top level WBS (billing element).

Question:

Should I somehow modify my settlement strategy in order SAP would treat hierarchical structure of WBS during settlement (I tick with hierarchy and with orders in CJ88), or I can somehow do result analysis grouping costs from different WBSs without settling it to billing element at first and comparing it with revenue from billing element.

Appreciate your help

Donatas

[Former Member · Accepted solution]

I believe you should go through the basics of RA and Settlement once. SAP Help would be the best place to do so.

As far as i know SAP automatically treats or considers the hierarchical structure. RA is always run on a billing element and thats a prerequisite for running RA. Assuming i have understood what you are exactly looking for, i dont think you need to do any changes as such.

By the way, what issue are you facing while transferring costs from 3rd level to the top? This should not be a point of concern since your billing element is the top level. When you run RA all the costs on the subordinate WBS elements will be taken care of automatically.

[Former Member · Accepted solution]

Thanks for your quick reply Pillai,

Regarding your questions: "what issue are you facing while transferring costs from 3rd level to the top? This should not be a point of concern since your billing element is the top level. When you run RA all the costs on the subordinate WBS elements will be taken care of automatically"

If I correctly understand your remark RA counts all cost from subordinates WBS elements that are linked to that billing element so settlement from subordinate WBSs to RA WBS is not needed as the initial step?

I am facing the problem that costs is not transferred from 3rd level WBS to the 2nd level WBS and therefore to top level - Billing WBS on which RA is run, as I was thinking (maybe wrongly) to settle all costs from subordinate WBS to RA WBS (as mandatory step) and only afterwords carry Result analysis.

Thanks

[Former Member · Accepted solution]

Hi,

You don't need to individually settle the costs from the lower level to the higher level, in your case the top level WBS element.

The RA run that you do on the billing WBS (top level) will take care of all the costs on the subordinate WBS elements. Try it once and verify the results of the RA run, if needed along with your FICO guys. Most probably you will not find any issue there.

In case you do, please revert with specific queries.

Regards,

Gokul