KKA2 Project Results Analysis not posting

[Former Member]

Hi Experts

I have the following scenario which I need help please.  I don't know quite how the flow between objects go.

There is a project with downpayment billing 70% and then 30%.  The WBS element was put into the sales orders and the billing was done and posted to FI but not COPA as settlement has to happen

Firstly, I do not see the 70% revenue on the activity/element report.

Secondly, I run KKA2 and get the revenue amount is saved but creates no financial postings.  What should happen is to clear the Revenue amount from the Income Statement with WIP until the project is TECO.

Where can I look/change that will post this WIP in FI please?  I have marked it to write FI line items.

Many thanks

Dawn

Message was edited by: Dawn Verrell I have marked it to write FI line items

[Former Member · Accepted solution]

Hi Dwan,

KKA2 only saves the RA calculations in the RA cost elements. for actual postings you have to follow that with CJB1(settlement rule) and CJ88 (settlement)

Settlement should create FI and COPA document based on all other RA configuration.

So if you have more actual revenue (via invoice/billing) than the RA calculated revenue, then it would defer the surplus to Balance sheet accounts and if actual revenue is less than the RA calculated revenue then it would create unbilled.

These postings are based on your OKG8 settings. posting rule.

Thanks,

Krishna

[Former Member · Accepted solution]

Hi Krishna

Thank you so much for this information.  I will try that and then mark you post with points tomorrow.

Take care

Dawn

[Former Member · Accepted solution]

Hi Krishna

I settled the project and got the revenue into COPA, but nothing posting for WIP.  I don't know if I am doing the wrong thing.  The project is not complete, only 70% has been invoiced as a down-payment.  There is no cost on the project yet.  the WIP screen does not show any adjustment to be made.

I am thinking that this 70% should be taken out the Profit and Loss into the Balance Sheet, till the full price is invoiced and the project is TECO'd.  Am I incorrect and how can I do this?  I have changed the method for the version to Expert mode and am now trying to fiddle with the various settings.

Do you perhaps have some advice on what I am looking for please?

Many thanks

Kind regards

Dawn

[Former Member · Accepted solution]

Hi Dawn,

Assuming that the RA Type is set to 'E Revenue-based RA', you may check following settings.

1. In OKG2, 'Transfer to Financial Accounting' should be flagged on.

2. In OKG8 for combination of CO Area / RA Version and Category WIPR, P&L and B/S account should be maintained.

So Let's say you have $1000 plan rev and $800 plan cost for the project and $700 is recognised revenue, then you will see WIP of (70% of $800 😃 $560 as WIP against B/S and P&L accounts as mentioned in OKG8 when you save RA data and execute CJ88.

Hope this helps.

Best regards,

Aditya

[Former Member · Accepted solution]

Hi Krishna

I am still trying to get the settings right in order that it recognizes the revenue as WIP.  I will mark further later.

Regards

Dawn

[Former Member · Accepted solution]

Hi Aditya

I have those settings correctly but it is not calculating WIP. 

I have revenue of 45,000.00 and no costs.  I am wanting WIP to take the whole amount out in WIP. It sees the amount but does not make any adjustment for this.

Many thanks

Dawn

[Former Member · Accepted solution]

Hi Dwan,

No worries about marking. Just trying to help.

What method of RA are you using? RA type and profit indicator in OKG3?

Also check if the revenue account to which Advance invoice is posted is mapped in OKG5 to a LID, which is eventually mapped in OKG4 to the appropriate RA cost element which in turn is mapped in OKG8.

Also another way is to analyze the results after KKA2.

When you run KKA2 with full log option, in the screen after execution you can go to Logs> various options there to see how the RA is calculating values.

Hope that helps

Thanks,

Krishna

[Former Member · Accepted solution]

Hi Krishna

Thanks I will again try more tomorrow.

Kind regards

Dawn

[Former Member · Accepted solution]

Hi Dawn,

As per my knowledge, the Revenue based RA will post Cost WIP in B/S and Actual Revenue directly comes in Income statement. Not sure if we can show Revenue as WIP using RA.