Planned cost for Revenue Recognition

[Pkohli]

Hi Team,

I'm trying to execute revenue recognition in ByDesign for project sales. The accrual method being used is Recognize cost using cost to cost project POC. I observed that when I take project planned cost based on labor cost rates the revenue recognition generates postings but when I use project planned cost based on service cost rates the revenue recognition does not generate any postings. Please let me know whether the RR can be done based on service cost rates or not because in our case we are using only service cost rates for project planned and actual cost calculation.

Regards,

Prateek

[caroline_lost]

Hi Prateek,

Can you please let us know a bit more about the exact scenario when you only use the service cost rates?

In general, if cost rates are not to be derived from labor resource cost rates, we recommend to directly assign a cost rate directly in the valuation tab of the service. Then create labor resources but without any cost rate and assign these labor resources to all organizational units which have service performers assigned.

Example:

Service performer A reports to cost center XYZ and is assigned to Job ABC.

Create a service DEF with a cost rate of 50,00 LC (Local Currency) per hour, directly maintained in the services valuation tab.

Create or use a financials relevant labor resource DEF assigned to cost center XYZ and JoB ABC.

Do not maintain a labor resource.

Or, if the labor resource used a cost rate before delimit the cost rate.

If you now maintain service performer A with this service in the project task the cost rate derived will be the one maintained in the valuation data of the service.

You can cross check this in the Project Plan Values screen of the project in the Cost and Revenue work center.

Navigate to the Services tab of the respective project task.

Here, the service is listed with the Valuation Method Service Cost Rate.

If you are working with a different set up please let me know and I'll check what can be done.

There is also an excellent help document Services going through any service related business scenario.

Either way, the revenue recognition run should generate postings, provided the POC was not already considered by an earlier run.

You might need to get this checked through an incident to see why no postings have been generated.

Kind regards,

Caroline