Revenue Recognition for Project in SAP PS

[Former Member]

Dear Members,

I want to run the revenue recognition for Projects in SAP. We have configured the result analysis for same. The Method which we will be using is Cost Based POC. Based on this we are calculating RR.

Now, while running RA, I understand that It's mandatory to do Revenue Planning in CJ42 and Cost Planning CJ40 for Project for billing WBS and that to we need to do at Cost Element Level.

Hence, let me if it's mandatory to do cost and revenue planning at cost element level in CJ40 and CJ42 to run RA? as If I am doing Cost and Revenue Planning at Overall Level system is not calculating RANI/REIB figures during RA Run.

Let me know if I am missing any configuration steps in this.

Regards

Rajat

[Paulo_Vitoriano · Accepted solution]

Hi,

On the expert mode please have a look at options available for the Overall Plan field under Planned Values group of fields.

Regards,

Paulo

[kenmelching · Accepted solution]

Good call Paulo.  I've never seen it done this way, but in Expert Mode in the Planned  Values settings there are 2 settings (Line ID Costs and Line ID Revenue) to assign a LID from overall planning.  You will need to do planning by period.

[Paulo_Vitoriano · Accepted solution]

Hi Ken,

I think the Line ID is optional there, means it is dependent on other settings, but not mandatory.  System can recognise Cost and Revenue without Line IDs generally speaking.  Bottom line is that Rajat needs some testing with Overall planning values and Options A, B, C, E.

[Former Member · Accepted solution]

Dear Paulo/Ken,

Thanks a ton for inputs. Currently, we are going ahead with E as advised in SAP best practice config guide.

I will surely do some testing in sandbox and update you with figures.

Thanks for inputs.

regards

Rajat

[sammar81]

Agree with Ken.. You would need to do cost planning using CE in CJR2 or CJ40.. And then check your line ID Assignments being used in RA to get the system to calculate the values for you..

Cheers

Samar

[kenmelching]

Yes, costs and revenues must be planned at the Cost Element Level to be used in RA.  Review the RA configuration and everything works around the LID assignment which is based on Cost Elements.

When you do overall planning the results are stored in a different table than the cost elements plan values.

[Shubham1]

Hi

Please refer to the above document as it gives all the steps in a very simple manner.

- Shubham