BYD - Profit Center Derivation - Derivation Based on Master Data

[former_member602881]

Hi SAP Community,

I'm looking for a solution to make recording time and creating SO & projects easier in ByD and I need some help.

In our Business ByDesign solution we have set up profit center based on product category to get the profit assigned to the correct department from our projects. The result/consequence is that we have duplicated values of the same service, which increases the error margin for our consultants submitting time on the wrong service.

Our revenue method is that revenue follows who is executing the task/service and not who is responsible for the project.

Example AS IS

Department A

Department B

Department C

Department D

Product Categories:

TM Department A

TM Department B

TM Department C

TM Department D

Services:

Senior Consultancy Dep. A

Senior Consultancy Dep. B

Senior Consultancy Dep. C

Senior Consultancy Dep. D

I've been looking into possible solutions make it easier, and need to do some reversed engineering to make this happen. The goal would be to have system set up:

TO-BE

Product Category:

TM

Service:

Senior Consultancy

*No profit derivation based on product category*

I've been looking into the SAP ByD Help Library
https://help.sap.com/viewer/2754875d2d2a403f95e58a41a9c7d6de/1905/en-US/2bcdc3f4722d1014aa0e8c54b3a3...

under Profit Center Derivation

___________________________________________________________________________________

1. Derivation based on master data

If the line item contains a cost object, the profit center in the master data of the cost object is used.
___________________________________________________________________________________

The way I understood this is that the cost object would be the resource/employee recording time against the service, and the revenue would then be assigned to the resources department - but this didn't work the way I wanted it to, so my interpretation might be wrong ?

__________________________________________________________________________________

3. Derivation based on organizational structure

• If the account assignment is a project, the system uses the profit center that is assigned in the organizational structure to the responsible cost center of the project or that is above that cost center in the organizational structure.
• If the account assignment is a sales order, the system uses the profit center that is assigned to the associated sales unit in the organizational structure.

__________________________________________________________________________________

Here my testing assigned the revenue to the sales unit instead of responsible cost center of the project? I'm not sure why, it would be easier to have one sales unit, and let the use the profit center that is assigned to the responsible cost center of the project.

To summarize:
My last option would be to change the org structure, and have a sales unit under the responsible dep. for the project and assigned them to the sales order header. This would change our revenue distribution from who's executing the task/service to who is responsible for the project. But that is if there's no other options that would meet the requirements that the revenue follows who is executing the service.

My last challenge would be implementation strategy, here I have no clue how to best approach this issue, because both options are time consuming, and a lot of errors might happen. Any knowledge/experience with this issue would be highly appreciated.

I see two possible outcomes - We settle on a cut-of date when we go from old services to new ones

Option 1 - We let the old services die out

- Implement new services and uses them on all new projects from the cut-of date

- Old Sales Orders would be delivered and Closed

- Our WIP with old services get cleared when it's invoiced.

- Then close/delete the old services.

Downside:

It make take years before the SO/projects are delivered.

Unknown how revenue reporting would be, but it's manageable and we will find a solution

Option 2 - We replace existing services on sales orders and projects?

- Implement new services and replace them on our sales orders/projects

- Then close/delete the old services.

Unknown issues:

- WIP

- Project invoice crediting

- Other

All answers/comments on my challenge would highly appreciated.

Yours Sincerely,

Mads Andre Masdal

[pvierendeels]

Hi Mads,

How did you solve this?