Result Analysis Based on revenue plan in cjr2

[Former Member]

Hi Experts,

I have a requirement for  RA which is based on revenue plan maintained on WBS in CJR2.

The cost would be posted as incurred. RA should not use cost for its calculation.

RA would just recognize revenue based on what is planned for that period and invoice raised.

if Plan revenue is > Invoice amount then difference will posted to deferred

if plan revenue is < Invoice amount then there will be posting to unbilled accrual.

Every time the RA runs, it should make the adjustments based on Plan Revenue, invoice revenue and deferred.

What method of RA would work for this? and is it standard?

Thanks for any suggestions.

Krishna

[Paulo_Vitoriano · Accepted solution]

Hi Krishna,

It is a very standard POC method based on planned revenue.

Regards,

Paulo

[Former Member · Accepted solution]

Hi Paulo,

Thanks for the suggestion.

Looking at the standard methods I believe you are suggesting method 06-POC Method based on revenue planned per period.

The documentation says it also determines capitalized cost and determine reserves for un realized costs.

In our requirement however, we don't want any activity by RA on cost. Cost should be posted to P&L directly as incurred.

How can we make this happen with method 06. We want RA to calculate only revenue ubilled and deferred.

Thank again..really appreciate any suggestions.

Regards,

Krishna

[Paulo_Vitoriano · Accepted solution]

Hi Krishna,

Yes, it is 6, but switch to the expert mode please, that is E and R.  To answer your question will take me to setup the system myself, please read in the expert mode the indicators for WIP.  You can put 99999999 (not sure how many digits max) for minimum WIP to get rid of it, same for Reserves.

Enjoy,

Paulo

[Former Member · Accepted solution]

Hi Paulo,

I have to try it. But I believe your suggestion would work. I will update the post accordingly if I find something otherwise.

Thanks you for your prompt suggestions

Regards,

Krishna

[Former Member · Accepted solution]

Hi Paulo,

Coming back on this one again if you don't mind.

If we use Expert Mode E & Q , along with valuation basis (with enhancement to pick planned revenue in CJR2)  will that work? Does it need some enhancement ?

How is it different from Expert Mode E & R with valuation method T?

I want to recognize revenue per the revenue plan in CJR2 which is independent of billing plan in sales order.

I want to recognize cost as its incurred and settle to COS.

Would appreciate your suggestions. Let meknow if you have any additional questions.

Regards,

Krishna

[Paulo_Vitoriano · Accepted solution]

Hi Krishna,

Almost one month back you wrote that you will give it a try.  Based on your latest questions it looks like you still have not tried anything yet, otherwise some of these questions would not be here.

You should give it a try.  I do not see the need for any enhancements.

Regards,

Paulo

[Former Member · Accepted solution]

Hi Paulo,

Sorry..we went another way..and I got into some other support issue.

So I just tried it

Expert mode "E" with "R" and valuation base "S"

I have a Sales order with billing plan linked to the WBS.

I also have updated the Revenue Plan in CJR2 (which is independed of the billing plan in Sales order)

The requirement is to recognize revenue as per the plan in CJR2 and adjust accordingly (unbilled/deferred) when invoice is posted as per billing plan.

The cost is to be recognized as incurred.

Finding-

a) I see that the calculated revenue is based on the plan I maintained in CJR2. Which is great!!

b) I also see RA calculating COS and generating Reserve for unrealized cost. (in this case it was advance billing before actual cost) - We do not want to create Reserve for cost.

we Just want to recognize cost as incurred.

How do I make just revenue work as it is working and have cost recognize as incurred?

Apologies if requirement was not clear earlier.

Regards,

Krishna

[Paulo_Vitoriano · Accepted solution]

Hi Krishna,

The same answer that was originally marked as correct gives you explanation how to eliminate reserves.  You should put the maximum amount something like 999999999 as a cap for reserves condition, same can be done for WIP.

I assume it was only part (b) that is an open question, since part (a) is okay.

Regards,

Paulo

[Former Member · Accepted solution]

Beautiful!!

It worked!!

Thanks a lot Paulo. Am new with this RA stuff, but now this whole things is starting to make sense.

Krishna