RRB - Revenue Surplus (RA method 15)

[Former Member]

Hi Experts,

The help documentation for RA Method 15 (revenue from RRB) says that it cannot calculate reserves.

Can anyone please explain this in details?

Does it mean that in a scenario where there are no actual cost/hrs to be invoiced, but if during RRB if we enter some advance amount when creating billing request, how will the RA in that scenario work? Will there be a deferred revenue posted in BS?

Thanks,

Krishna

[kenmelching · Accepted solution]

RA Methods 14 and 15 run RRB so there must be incurred actual costs.  If you use the method in non-expert mode it will not defer an advance invoice if there are no costs.  It only "sees" invoices created through RRB.

[Former Member · Accepted solution]

Hi Ken,

Thanks. So is it differently possible in Expert mode? or its standard behavior in both modes in this method?

Regards,

Krishna

[kenmelching · Accepted solution]

In Expert Mode look at the Commitments setting.  I think you would want G.

Be aware that when you enter Expert Mode changing settings will require a lot of testing.

[Former Member · Accepted solution]

Hi Ken,

Separate question on this topic.

If am using RA with RRB and expense is posted , but the billing happens only in the following month(in DP91), can this RA calculate any revenue for the current month ?

Thanks,

Krishna

[kenmelching · Accepted solution]

That is exactly what this method does.  It creates Revenue for incurred costs that have not been billed yet.

[Former Member · Accepted solution]

Hi Ken,

Yes it did create Unbilled in the current month, and when I invoiced later month using DP91 and ran settlement it cleared the unbilled.

Where does this RRB RA calculate the revenue from? and what options do we have?

a) Can we have in case of actual hours, RA Calculated revenue based on Actual Hours x Billing rate of material ?

b) In situations where we have consumables which are billed without profit margin, can we have RA calculate revenue =cost of sales ?

Will both these require different RA or will having different DIP profile in the Sales order lines resolve it?

Appreciate your suggestions.

Regards,

Krishna

[kenmelching · Accepted solution]

It runs RRB from the same DIP profile as normal billing to calculate the unbilled revenue.  It's like you are creating the Debit Memo Request.

The only config you have to to is make sure the DIP profile is working (which is no small task).