RA Key with No result analysis

[Former Member]

Hi Experts

Probably a very basic question.

If I have a customer T&M Project where I want to recognize revenue as its incurred and recognize cost as its incurred, Do I really need a result analysis in this case?

I would need to settle cost & revenue to profitability segment though.

So can I leave the RA key blank in the WBS or assign some RA key which does not make any calculation. For the later, what would be the configuration? Choose any method and just to not create any line ID assignment in OKG4 ?

I am looking for create a RA Key which is for " No result analysis", Just to make the business process even with other projects which might have a proper RA Key.

Thanks,

Krishna

[former_member388328 · Accepted solution]

Hi Krishna,

When you tick some element as billing element in the project, then RA is mandatory . Without running result analysis , you cannot settle it. In above case use revenue based result analysis.

Thanking you

Vengaiah

[Former Member · Accepted solution]

Hi Vengaiah,

Thank you. That's good to know.

So how do I make sure that I don't create any unbilled or surplus revenue?
same with wip and reserves for cost etc.

I want revenue and cost to be recognized as its posted.

Regards,

Krishna

[former_member388328 · Accepted solution]

Hi Krishna,

Only maintain cosr in okg8. But okg8 config is at company code level. Which means if you have multiple RA's based on scenario  , OKG8 config will affect all the RA's.

Other option remove the transfer to accounting tick and create the RA, check with if this worksout , run complete scenario testing. I am not sure on this option.

Other option in okg3 in status control enter just REL status in Cancel Inventory w/Status and Cancel Inventory/Reserves with Status. Do a complete testing on this also.

Thanking you

Vengaiah

[Former Member · Accepted solution]

Hi Vengaiah,

For your suggestion 1,

Does not work for me because its the same company code. I have one project with different WBS having different RA key based on revenue treatment they want.

For one WBS we are using RA based on revenue plan, which is working fine.

For another WBS (parallel level) we have some T&M portion of the contract where we want to recognize revenue and cost as its posted. But want to settle to FI & Profitability. Here we do not want RA to calculate unbilled, surplus, inventory, reserve.

On Suggestion 2,

Transfer to accounting tick  is on RA Version right? Can this be specific to RA Key

I have one RA Version to use for both RA Keys.

On suggestion 3,

does it also stop/control creating on unbilled/ surplus revenue? I do not want any unbilled or surplus either.

Appreciate your suggestions.

Thanks,

Krishna

[former_member388328 · Accepted solution]

Hi Krishna,

Option 2 is based on version , we generally use only 0 version for all RA keys.

Option 3 , Quickly configure the RA key put the status control as REL and test it.

Thanking you

Vengaiah

[Former Member · Accepted solution]

Hi Vengaiah,

I tried Expert Mode E , Q with valuation basis "J"

This seem to be doing what I was looking for. ie Not creating any surplus revenue nor unbilled.

Can you elaborate what that combination of configuration actually does? In terms of calculation.

Thanks,

Krishna

[former_member388328 · Accepted solution]

Hi Krishna,

Please see screen shot highlighted Resultres. Put that to A and test your scenario.

Thanking you

Vengaiah

[Former Member · Accepted solution]

Hi Vengaiah,

Thanks. The setting I was trying for this requirement is below
for REL

for TECO

I need to test all scenarios.

But do you think this will work for my requirements ? or how exactly this is suppose to work in theory ?

Regards,

Krishna

[Paulo_Vitoriano · Accepted solution]

Sorry, but that is not true. RA has no dependency with WBS being a billing element.  Billing elements do not force any RA keys in standard system.

[Former Member]

Hi Vengaiah,Paulo,Ken,

Thanks for all your feedback. I need to test based on the discussion above to determine what works for me.

To just give you the scenario in more detail. The client has been on SAP from some time and is now looking for new RA treatment for some new projects.

So we are trying to keep the settlement profile same and introduce new RA key and structure.

The project would be something like below..

Level 1 is just for summarization. RA Key will be assigned to Level 2s only and to be settled to PSG

There would be child WBS with activities under each level 2.

Settlement profile is the same and assigned to project profile.

The WBS L2.1 has the RA Key based on revenue plan ( E, R)

Cost is recognized as its posted. Deferred and unbilled are adjusted based on actual revenue and revenue plan.

COS and calculated revenue is settled to PSG. This is working as per design.

The question is on WBS L2.2

Here we need to recognize revenue and cost as its incurred. However every month COS and Revenue is to be settled to PSG.

The actual revenue (invoice doc) does not generate COPA document, So I don't think there will be duplication of revenue in COPA after settlement.

When I tried to settle WITHOUT RA key on this WBS, it gave me Error that my Allocation structure does not contain the Revenue GL as the source.

So, am wondering if I need some RA Key which would just put the values to the RA cost elements (source now)and then it can be settled to PSG from there.

or Alternatively do I introduce a new GL for revenue and update the allocation structure in settlement config?

Hope the question is clear.

Below is my Allocation structure screen shot..

Thanks,

Krishna

[former_member388328]

Hi Krishna,

Can you tell me what reports you generate in PSG using projects.

Thanking you

Vengaiah

[Paulo_Vitoriano]

Hi Krishna,

For dummy RA key you can use the RA Type Z.

Regards,

Paulo

[kenmelching]

You do not have to have an RA Key on a WBS even if it is marked as a Billing Element.  Simply leave off the RA Key and when you post billing or costs thay will stay on the P&L.

[former_member388328]

Hi Ben and Paulo,

Basic requirement is  "I would need to settle cost & revenue to profitability segment though.'" When you want to settle to PSG , i think RA is needed.

If he settles to PSG without running the RA. if he maintains PSG as settlement receivers in all levels of WBS Then there will double costs in his COPA reports. 

Thanking you

Vengaiah

[Paulo_Vitoriano]

Hi Vengaiah,

There is no dependency between settlement to COPA and RA being mandatory.  I do not see anything to duplicate without RA.  Maybe you should explain in more detail what you think will be duplicated.

Thank you,

Paulo

[former_member388328]

Hi Paulo,

When you run a RA at top level and book ur revenue to top level and book your  costs to lower level.  System summarize's lower cost to top level and calculates the profits. and when you do the settlement then only profit is settled to PSG.

Now if you don't run RA , and you want settle all your costs and revenues to PSG. Then there will be double booking copa, When you actually book cost or revenue system automatically transfer the revenue and cost data to copa, through copa documents. In the second case we are transfering the costs and revenues twice to copa.

We can test this in IDES system .

Thanking you

Vengaiah

[Paulo_Vitoriano]

Hi Vengaiah,

I think you have too many assumptions around a specific scenario for this to happen.  In particular a use of SD module for the cost and revenue flow to COPA.  System would not duplicate anything itself, that can be only a wrong system design behind the circumstances that you are describing.

Many clients can use COPA without using SD, even if that is not the most "IDES" way of doing things.

Regards,

Paulo

[kenmelching]

Without RA you would settle the lower level WBS to the higher level WBS, then settle the higher level WBS to COPA.

Or you could just settle all WBS straight to COPA but you could have different segments.

Either way you are not double booking to COPA.  COPA is only posted through settlement.

[former_member388328]

Hi Paulo,

I am only assuming that system is configured on SAP best practices. Standard practice is cost and revenue is flows to copa from sd or mm module. based on that i suggested.

Thanking you

Vengaiah