Project Settlement Issue

[Former Member]

Urgent Please. We are having issues with settlement with couple of our new projects.

When running CJ88, the planned cost is settling to COS.

With the projects with issues, when I run CJEN it is showing the planned cost as RUCR which I think it should be RIML.

RA key are the same for all project, so not sure where the issue is coming from.

With our previous projects actual costs are accumulated in WIP until Sale is taken.

Thanks for your help.

[kenmelching · Accepted solution]

Sounds like you are using Completed Contract method where all costs and revenue are moved to the balance sheet until contract completion.

RUCR is reserves for unrealized costs is used with POC methods.

RIML is a reserve of imminent loss where your planned costs are higher than your planned revenue.

With pure completed contract you should have WIPR.

The problem is with your RA key.

Are you running RA prior to settlement?

[Former Member · Accepted solution]

Sorry I'm still a newbie with project systems.

Our process is:

CJ88 or CJ8G - All actual of NWA settles to the superior WBSE

KKA2 - Calculates WIP

CJ88 or CJ8G - Settles WIP to financial accounting.

When Project is Teco'ed then cost in WIP then transfer to COS.

Issue is with the new project created, the first CJ88 run, the planned cost is seen to be transferring to the COS cost element.

When I run CJEN the issue project has RUCR which is equals to the planned cost. While when I run CJEN with the correct projects, there is no RUCR instead it's RIML.

The RA key is exactly the same on the correctly settling projects and the issue project so I do not know where the issue is coming from. Is there somewhere it's storing the original planned cost because I tried adding planned labour on the project and then run CJ88 test and the original planned amount is still transferring to COS.

Do I need to check the Sales order or configured part number and where would the error could be.

Thanks for your help.

[Paulo_Vitoriano · Accepted solution]

Hi Deana,

Ken is exactly right, RIML means your planned cost is bigger then your planned revenue.  The planned revenue is coming from the Sales order (normally), so please check if the amount is correct there and why it is less then planned cost.

On the other hand I would not consider RIML as a BAU situation, so bit puzzled you consider it "normal" and not the RUCR.

Here is some help, but it is not really useful if you never seen it before:

http://help.sap.com/saphelp_46c/helpdata/en/90/ba707c446711d189420000e829fbbd/content.htm

Can you please share a screen from the transaction OKG1 for your RA key?

Regards,

[Former Member · Accepted solution]

Hi Paulo,

Thanks for your help.
Above is the snapshot of the RA key as requested.

In CJ20N, I have added planned labour and also parts to the project and re-run CJ88 and still the original planned cost is settling to the COS cos element. We do not want any planned cost to settle to COS, only actual.

This is a snapshot of CJ88. At this stage no actual cost is on the project yet.

Thanks,

Deana

[Paulo_Vitoriano · Accepted solution]

Hi Deana,

To show RA key settings you need to double-click on that line, sorry if I was not specific enough.  But just code and text have no value as such.

Thank you,

[Paulo_Vitoriano]

Hi Deana,

What is your RA method?  Complete contract or POC?  System would use planned cost only in POC methods...

Check the GL accounts posted to those new projects and check the RA method custo.

Regards,

[sammar81]

Hi Deana,

Plan Costs are not affected by settlement/CJ88.

Is it happening at the time of RA using KKA2?

Please elaborate. If its possible can you share the screen shots for the project in which you are facing the issue?

regards

Sammar

[sanjeevc]

Hello,

By settlement you can not settle plan cost, only actual cost which have project object to be settle.

can you elaborate your query what you are doing and how you are getting error while doing settlement then what error is coming, please share those screenshot.

Regards,
Sanjeev