Unable to do final settlement WIP - results analysis - in a project

[ashwinipingle]

Hello All,

We have set RA for projects. This is MTO scenario. All actual costs of project in Release status are calculated as WIP in top WBS.

For periodic settlement, this is getting settled to B/S and P/L accounts mentioned in RA settings. This is fine.

For final settlement, i.e. after TECO of project, run KKA2 and then CJ88 - Full Settlement - for the WBS, we find the reverse entries in B/S and P/L.

However we want the actual costs to be settled to G/L - Finished Goods. We have provided the settlement rule in the top level WBS.

1. What we find is that final settlement is settling to a cost center. We dont want to settle all actual costs to this cost element. We want to settle to G/L Finished Goods account. Specifying G/L account in settlement rule of Top level WBS is not working. Costs still settling to cost center -cost element  type 21

2. How can I check the balance of the project, if any? tcode/report? I checked CJI3 and find all costs there.

Regards,

Ashwini Pingle

[Paulo_Vitoriano · Accepted solution]

Hi Ashwini,

1. It is in the settlement profile where valid receivers are defined (on the right side).

2. For example you can take S_ALR_87013542 to get a balance by cost elements.

Regards,

Paulo

[DaveS4]

Hi Ashwini,

You said: "For final settlement, i.e. after TECO of project, run KKA2 and then CJ88 - Full Settlement - for the WBS, we find the reverse entries in B/S and P/L"

This is the normal system behavior when you use RA. The FI settlement is controlled by RA's configuration that is in OKG8. Your settlement rule is ignored, except PSG, RA will require COPA settlement for the accruals/reversal accruals.

Regards,

Dave

[ashwinipingle]

Dave,

Does this mean that unless COPA is configured, we cannot do the final settlement of the WIP/accruals ?

[Paulo_Vitoriano]

There is no need for COPA.  WIP/Accruals is pure accounting.

[ashwinipingle]

Paulo,

Exactly what I am thinking that COPA may not be required. However Dave's reply above makes me think that it is required ("Your settlement rule is ignored, except PSG, RA will require COPA settlement for the accruals/reversal accruals."). So let me wait for his comments further.

[DaveS4]

Ashwini,

I have setup many different types of RA's with different methods. Not all methods do require COPA, i.e. if only calculating WIP, you don't need it. However in some methods (especially revenue based) it creates accruals that are settle to COPA....That was fyi..

@Paulo WIP is pure accounting, but Accruals are FI and CO altogether....

Now back to your case: In RA the settlement is governed by the  OKG8 configuration. Please what rules exist to settle WIPR (WIP) and RUCR (reserves) categories of RA there and see target P&L and BSheet accounts.

regards,

Dave

[ashwinipingle]

Thanks a lot Dave for clarification.

As configured in OKG8 - we are seeing entries of WIPR in the B/S and P/L accounts during periodic settlements. This is working fine. After final settlement we are seeing these entries reversed also.

What we want is a final posting to a finished goods GL -- different from the B/S and P/L configured in OKG8. Instead we are seeing the final settlement (i.e. all the actual costs at the time of TECO) getting settled/posted to one cost center -cost element. How can we achieve avoid this and post to a required G/L ?

We are using "Results Analysis Method 13 - Inventory Determination "WIP at Actual Costs" for Objects Not Carrying Revenue" in OKG2.

[Former Member]

Hi Ashwini,

"Full Settlement - for the WBS, we find the reverse entries in B/S and P/L."- it is standard behavior.

Since it is MTO process, so remove "Cost Center" as receiver from the settlement profile (it might be optional right now). Are you defining this cost center (e.g. requesting CC, although it is not required) somewhere in project? Please check allocation structure in detail.

[ashwinipingle]

Hi Kuldeep, thanks for suggesting. We have most of the receivers as Optional in the settlement profile. Should I keep only the G/L, WBS, Network as optional?

[DaveS4]

Ashwini,

My suggestion is to add the Inventory acct 252xxxxx into the RA configuration as well.

1) Please make sure this acct does not have a cost element (currently it has since CCtr posting)

2) Adding one acct to the OKG8 is tricky.You need 2 lines for that:

     a) Line 1 -  WIPR, Record=0, PL Acct  = Use Any P&L acct , BalSheet Acct = 252xxxx

    b) Line 2 =  WIPR, Record=1, PL Acct  = 252xxxx , BalSheet Acct = Use Any P&L acct in (1)

That should only post to the BSheet acct. That being the case get rid of your settlement rule. Please test and let me know. I have done this before and works fine.

Regards,

Dave

[ashwinipingle]

Thanks a lot Dave for your help. Once I configure and test, I will provide an update.

Meanwhile Merry Christmas !!

[Former Member]

Hi,

1. Check the Receiver Category assignment in Allocation Structure and check the Settlement Rule of the settlement sender( Refer the settlement documents).

2. Check in S_ALR_87013542 Cost Element Report. Settlement value will be displayed in negative and you will find the remaining value. Or in CJI3 Filter by Business Transaction KOAO and Original Business Transaction KOAE to analyse the settled value and Balance.

Thanks

Ganesh 

[ashwinipingle]

Hello Ganesan,

I checked CJI3 and filtered by KOAO and KOAE. In KOAE, the report is blank. What could this mean?

[ashwinipingle]

Hello Ganesan,

Since we are not getting any data in Bus.transaction KOAE (cji3 report), it means no external settlement has happened. So costs remain in project itself. Am I correct in interpreting the report?

I checked the receiver category and it is cost element for WBS. Pls. see the screen shot. Please advise.

Settlement Rule of sender - i.e. top level WBS with the RA Key