Planned Rev from SO to Project in RRB scenario

[Former Member]

Hi All,

I am struggling with one business scenario of Resource-related billing and need your inputs / suggestions.

1. Business receives Sales Inquiry from prospect / customer. So they create PS Project and plan costs for individual resources via Easy Cost Planning template.

2. Once costs planned, they create Quotation from PS Project using appropriate Sales Pricing settings and generate Quotation by adding mark-up on each resource. As example, let's say Plan Cost is $80,000 and Revenue is $100,000.
3. Quotation is then sent to customer for review and approval.

4. If Quotation is approved, then milestone is created in Project against the top WBS element to send the customer down payment request. In our example, let's say 20% is the down payment so the billing plan in SO will have one line item of $20,000.

5. With reference to released milestone, billing invoice is raised and sent to customer. At this moment when executing Result Analysis (Rev based method = 01) for Project, the Planned Revenue is $20,000 and Actual Revenue is also $20,000.

Hence the Planned Revenue is coming only from the Down payment milestone that is created in PS Project. Whereas, we require to consider planned revenue as Net Value of Sale Order $100,000.

I recon this being SD Issue of Item Category and Billing relevance flag. But can anyone help me on how to fix the issue related to Planned Revenue in RRB scenario of PS Project?

Appreciate prompt response.

Cheers,

Aditya

[kenmelching · Accepted solution]

You are mixing up functionality and that is causing your problems.

There is no Planned Revenue in RRB.  The revenue is directly related to the costs incurred and hence is not planned.  The RA methods that use RRB are 14 and 15.  They are not POC based.

By adding a billing plan in the SD order you are creating planned revenue and according to your billing plan the total planned revenue is 20,000.  You need to add another billing plan line for the rest of the revenue.

RA Method 1 is not RRB related.

[Former Member · Accepted solution]

Hi Ken,

Thank you for clarifying the concept. As suggested by you, I have been running the commercial project's scenario and with trial-and-error I have achieved the desired outcome with RA method 15.

Awarding points as well.

Kind regards,

Aditya.