BAPI to update CJR2 Revenue Plan

[Former Member]

Hi Experts,

We are planning to create a program to update revenue plan in CJR2.

What should be the best way to do it? Basically the custom program does some calculations and then updates the revenue plan.

Which BAPI should we use here? and what the method to find a BAPI for it ?

Or is BDC better option here?

Or any other suggestions. I am aware of the WBS -excel integrated planning option.

Thanks,

Krishna

[Former Member · Accepted solution]

Thank you for brainstorming with the requirement. It really helped.

But just to close this, back to the original question on BAPI to update CJR2 WBS and cost element plan,

Can someone suggest which BAPI is to be used here?

Regards,

Krishna

[Paulo_Vitoriano · Accepted solution]

Hi Krishna,

Please have a look at BAPI_COSTACTPLN_POSTPRIMCOST.

Regards,

Paulo

[Paulo_Vitoriano]

Hi Krishna,

Can you give any hints about the nature of such update? What is the requirement?

SAP can do certain things as a standard solution, so that is why try first to match it with standard functionality like Overhead/Interest for example.

Regards,

Paulo

[Former Member]

Hi Paulo,

Its to update the revenue plan for revenue recognition. So we are using expert mode for RA key E & R. Actual requirement is to book revenue based on Actual hrs X Billing rate. We went the RRB route, but they want to invoice based on billing plan in advance, arrears or milestone based on contract terms. So RRB doesn't looks like working for us.

So we are giving them a simple process of updating their revenue plan after doing the calculation in excel and RA would recognize it and adjust unbilled/deferred based on actual invoice.

So we want to give them an option to update the revenue plan in CJR2

a) by excel upload manually

or b) trying to build a program to do Actual Hrs X billing rate and update CJR2 plan automatically.

Let me know if you have further questions. Appreciate your suggestions.

Thanks,

Krishna

[Paulo_Vitoriano]

Hi Krishna,

I am bit lost in your explanation here.  If your RA method is based on Planned Revenue and that calculates essentially "accruals" to the actual revenue and that is next updating planned revenue and next time RA is recalculated based on a new revenue plan...  That does not look neither logical nor transparent or any GAAP compliant.

It looks like you want to update the planned revenue with actual revenue, but again that makes little sense to me, since you will have that actual revenue anyway.

Maybe I simply do not get your requirement, but seems overcomplicated.

Regards,

Paulo

[Former Member]

Hi Paulo,

Thanks for responding. Let me try to explain

I have a contract which says I can bill the customer in Advance. Say $1000

Now I have a revenue recognition plan of 100 each month for next 10 months.

So I update the revenue plan in CJR2 for 10 months with 100 each. ( am looking for a BAPI to update this)

Say invoice was posted before the project starts and plan revenue for this month is 0 in CJR2. When RA Runs, it will differ $1000

Next month when RA Runs and finds $100 Plan revenue in CJR2, it would recognize $100 and adjust the deferred to $ 900. and so on till the deferred is cleared.

This would work even if the billing is in one time advance (not down payment) or even if the billing is in periodic, or fixed periodic. ie Billing plan in Sales order is contract driven and revenue recognition each month is driven by the plan in CJR2.

Hope that helps clarify.

Krishna

[former_member388328]

Hi Krishna,

this is not the way to treat advance payment against sales in order in sap. Check with your SD consultant, there is better way and simple straight forward to do it

Thanking you

Vengaiah

[Paulo_Vitoriano]

Hi Krishna,

In your example I do not see any updates to the planned revenue.

Standard distribution key 1 will give you an equal distribution of overall amount by periods in CJR2.

Regards,

Paulo

[Former Member]

Hi Vengaiah,

Its not just advance payment.

Say the contract is for 10 months and there is billing milestone for M1 = $500, then M5= $400 and M10= $100

We are using Billing plan for the same, billing side is fine.

But now for revenue recognition, they want 100 each month for 10 months in PS.

So we are using RA with revenue plan without creating reserves because cost is recognized as incurred. Revenue is recognized as per plan, and unbilled and deferred revenue is adjusted by RA as and when invoice is posted according to billing plan.

Thanks

Krishna

[Paulo_Vitoriano]

Hi Krishna,

Maybe you can consider a progress method based on a timeline and that will allocate revenue equally for the purpose of RA, so there will be no need for you to redistribute the plan revenue.

And your original milestones can be untouched.  Just an idea, so cannot give you a complete solution.

Regards,

Paulo

[Former Member]

Hi Paulo,

Ok good to know that. However its not equal distribution each month in all cases.

They do some calculation in the back to come up with the revenue to be recognized for that period during month end. Basically they just take number of hours posted and multiply it with a flat rev recognition rate to come up with that revenue amount to be recognized in that period.

We want to update that plan in CJR2 with that amount and RA would just recognize it and create deferred/unbilled if or not there was actual revenue from invoice. Each month they would keep updating the plan revenue in CJR2( without changing the previous months plan and not exceeding the overall contract value) based on their calculation.

Thanks,

Krishna

[Paulo_Vitoriano]

Hi Krishna,

Have a look at RA type M - quantity based results analysis.  I am quite sure you should be able to avoid the manual updates into planned revenue.  If the rate is fixed it will not change the distribution, so only quantity is counting.

Regards,

Paulo

[Former Member]

Hi Paulo,

Actually we went that route..that is RA Expert Mode L & Q with progress analysis.

They are not happy with it as they need to plan very accurately or adjust plan based on  actuals to makes they don't recognize more or less revenue. Also Their planning is not accurate. They plan 100 hrs with Work Center 1 but when actuals are booked, it could be WC 2 or WC 3 with different rate. So that messes up with POC and so the revenue.

Then they went RA Expert Mode E & Q which calculates POC = (Actual Cost/Overall planned) * Total planned revenue(Sales order)

Again, they dint like it.

I understand they would need to plan properly to get proper POC and revenue based on it.

Finally we are trying simple revenue plan RA, and giving them option to update the revenue they consider can be recognized. ofcourse they will have back up for that.

Not sure how else to do it.

Thanks,

Krishna

[Former Member]

Hi Paulo,

Ok. I just read though it. (not tried in system)

It says based on Base Quantity in RA customization. And in there I see three options

A- Delivery Qty

B- Billing Qty

C- SKF

In our case, the sales order does not have any quantity as such. Its just total value broken up by billing plan. Order qty is always 1

Does it capture Actual Hours posted on the WBS as quantity ?

Thanks for your time.

Krishna

[Paulo_Vitoriano]

Hi Krishna,

It will not capture actual hours as such, moreover I believe that does not help anyway, since you can have different prices from different Cost Centers (Work Centers).

So, either you can use A and review your SD process or use SKF that is same periodic revenue, but posted as SKF.  Maybe SKF is better from usability and process perspective since the system will capture the document with user information and a document date.

You need to play around to test it.

Regards,

Paulo