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Calculation of RA Method.

Former Member
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How does Planned profit % is calculated in Result analysis in Revenue-Based Method - With Profit Realization? Should it be calculated based on planned cost or planned revenue? Is there any specific customization to be done for this in order to make it for revenue or cost? Awaiting for answer ASAP. Its very urgent

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Answers (3)

Answers (3)

Shubham1
Employee
Employee
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kenmelching
Active Contributor
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In the Valuation Methods config, in Expert Mode you set it with the Profit Basis setting.  There is an option for a Customer Enhancement to have the basis be what you want.

The help says Profit Percentage is the ratio of Planned Revenue to Planned Costs.

former_member388328
Active Contributor
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Hi Kanchan,

If it is Revenue based method then POC is calculated based on  actual revenue divided by plan revenue.

If it is Cost based method then POC is caculated based on actual cost divided by plan cost.

As far as config's are concerned, there so many post available on SCN. Please do some research and just let us know if you are held up somewhere.

Thanking you,

Vengaiah

Former Member
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Hello Vengaiah,

Thank you for your quick response.

POC calculation is fine. Issue is with Planned profit % calculation..

For revenue based method, would planned profit divided by planned cost? Or revenue? This is my doubt? And is there any specific parameter for this in valuation method settings?

TIA.

REgards,

Kanchan