RA Method for resource related billing

[kapil_mehta]

Hi CO Gurus

I am trying to configure resource related billing (RRB), and want to execute results analysis. Which RA method should be used in context of RRB ?

What is difference between following RA methods. Please provide feedback.

14.  derive cost of sales from RRB of dynamic items

15  derive revenue from rrb and simulation of dynamic items.

-Thanks

Kapil

[jason_shao]

Hello Kapil,

It should be either 14 or 15 for PPB.

I have attached some informaton about 14 and 15 below.

Best regards,

Jason

(14) COS from Resource-Related Billing of Dynamic Items  Use Depending on the contractual agreements, you can invoice your customer for the expenses incurred in each period for consumables, services, and taxes. These expenses can be compared with the revenues in the P & L statement. You can use static resource-related billing or resource-related billing of dynamic items. This results analysis method can only be used with resource-related billing of dynamic line items. You can use the results analysis method Derive Cost of Sales from Resource-Related Billing of Dynamic Items for: •Sales orders •Projects The cost of sales is derived from the resource-related billing with dynamic items. The cost of sales is calculated in the amount of the invoiced line items. (15) Revenue from Resource-Related Billing and Simulation of Dynamic Items Use Depending on the contractual agreements, you can invoice your customer for the expenses incurred in each period for consumables, services, and taxes. These expenses can be compared with the revenues in the P & L statement. You can use static resource-related billing or resource-related billing of dynamic items. This results analysis method can only be used with resource-related billing of dynamic line items. You can use the results analysis method Derive Revenue from Resource-Related Billing and Simulation of Dynamic Items for: •Sales orders •Projects The cost of sales is derived from the resource-related billing with dynamic items. The cost of sales is calculated in the amount of all incurred actual costs.

[former_member517909]

Hi Jason, not sure if you have experience these scenario while using RA method 15, we have price rate that is less than cost .. so its a loss project.

1) we got cost posted against the projects, no revenue, we run RA and settlement and we got correct revenue in excess billing calculated, correct COPA settlement and FI settlement, all good at these point... lets say we had COST USD = 10, REV USD = 8 (loss contract) .. 2 hrs of cost at 5 USD per hr .. revenue calculated at 4 USD per hr.

2) The on the following period we get some real revenue no cost, while executing RA I can see the revenue in excess calculation is not changing and I am ok with these are there is no new cost, we did the settlement and system settle to COPA new profit for the project base on actual revenue + previous revenue in excess, the issue we have is that now base on actual cost, the revenue we have is too high, new figures .. COST USD = 10 ... REV USD = 12 (8 from step 1 + 4 from real billing).. at these point there was a billing of 1 hr at 4 USD per hr .. I would expect the system to lower the FI revenue somehow by 4 USD so we keep the same REV USD = 8 as we have not deliver anything else to the customer but there is nothing lower from settlement, only COPA settlement happen .. 2 USD of profit that should not happen.