Cost Recognition based on Percentage of Completion

[Former Member]

Dear Expert,

Nowadays, we are implementing SAP PS to handle Plantation and Farming Business Operation.

One Block of Plantation area is defined as 1 WBS. All of operational Cost in this Block will be recorded in Network Activity which is part of the WBS and at the end of month will be settled to WBS. One cycle of plantation upkeep take around 20 months starting from Land Preparation until Harvesting. During upkeep period, all of cost in WBS will be recognized as Work In Process (WIP) by using Result Analysis Methods. After 20 months, the Plants will start to be harvested. Harvesting process for one Block take 2 or 3 Month or the other words, one Block of Plantation always be partially harvested for several months. After harvesting process completed (100%), this block will be started to Land Preparation for New Cycle of Plantation Upkeep. It means, Product Cost for each month is calculated by percentage of harvested product of the block at particular Month.

How can we use the Percentage of Completion in WBS to handle Cost Recognition form WBS for Product Cost Calculation ?

Thanks for advice

Adi Prasetya

[kenmelching]

This works fine in deliverd SAP.  You can determine the POC using either Progress Analysis with PS Milestones or Quantities through SKFs.

For a Quantity based POC calculation you use Statistical Key Figures to plan a quantity and then post Actual Values.

[Former Member]

Thanks Ken,

I think your idea was quiet OK, please guide for preparation to do that.

[kenmelching]

Look at this standard RA Method:

http://help.sap.com/saphelp_erp60_sp/helpdata/en/32/c8d8530439414de10000000a174cb4/content.htm?frame...

[Former Member]

Hello Adi,

Refer to the link below ,

this is Standard in SAP PS

http://help.sap.com/saphelp_di471/helpdata/EN/7e/016b2fbc3611d2b4b8006094b9c9be/content.htm?frameset...

Regards

Vittal