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Project Systems - Result Analyses - Different valuation method under one RA WBS

Mar 13, 2017 at 07:45 PM

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I have a situation in which Level 2 WBS has the RA key and RA will always run on level 2. RA keys not allowed on lower levels WBS. Project structure extends to level 5 and usually cost and revenue are collected at level 4 and level 5.

Requirement is, RA should run and accumulate at level 2 but the values should be calculated as per the level 4 and level 5 WBS status. e.g. if level 4 WBS is not billed then actual cost should post to WIP and revenue to unbilled AR but if the level 4 is Billed then individual amount should contribute to COS and Actual Revenue. All the individual calculation for WIP, Unbilled AR, COS and revenue should be accumulated at level 2 WBS.

Example:

Level 2 WBS (RA Key) (Total) WIP | Unbilled AR | COS | Revenue |

Level 2 WBS (RA Key) (Total) | $100 | $120 | $180 | $220 |

level 3-A (not billed yet) (Total) | $100 | $120 | | |

level 4 (not billed yet) | $40 | $100 | | |

level 5 (not billed yet) | $ 60 | $20 | | |

Level 3-B (billed) (Total) | | | $180 | $220 |

level 4 (billed) | | | $70 | $80 |

level 5 (billed) | | |$110 | $140 |

Any help would be appreciated.

Thanks

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10 Answers

Vengaiah Chowdary Pachava Chinna Mar 20, 2017 at 09:26 AM
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Hi Rafiq,

First point i am unable understand your requirement. Second point , i have strongly that you are making the system more complex.

Why are you billing at different levels ?. Best practice is that you bill on top level of the WBS and all lower level cost should summerize there and calculate your WIP or COS what ever it is.

Can you please explain your business requirement.

Thanking you

Vengaiah

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Rafiq Khan Mar 30, 2017 at 02:56 PM
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Thanks Vengaiah to even trying to understand the requirement. I agree the system is complicated by billing on the lower level WBS but this is something done like 10 years ago and I cannot change the SAP landscape now. So I have my limitations. I will try to explain it, lets see if you understand.

The requirement is to have two different valuation methods under the same RA key on level 2 WBS (I am not talking about one method for REL status and one for TECO. RA key should behave differently under status REL). one valuation method is POC and other is completed contract. This should be driven by the subordinate WBS i.e. if they are billed or not (in my case its level 3 WBS). If the level 3 WBS has no revenue, cost collected on this WBS and subordinates should be reported as WIP and calculate Revenue. But If the level 3 WBS has actual revenue, then the cost on the WBS should be posted to COS and Revenue on that particular WBS as actual Revenue. So in other words the RA should happen at individual WBS level and get summarized to level 2 where I have the RA key.

This might be achieved by setting the TECO on level 3 and using the Project Str field in OKG3. I tired the Project Str "C" but it is changing the Plan values for the WBS respectively in TECO status instead of posting the actual cost as COS. I know there is combination of different parameters in OKG3 to accomplish this but not sure what it is?

Any idea? would appreciate a suggestion.

Thanks

R

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Vengaiah Chowdary Pachava Chinna Mar 30, 2017 at 04:49 PM
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Hi Rafiq,

In OKG3 goto expert mode and use Project Struct. = T or U.

Thanking you

Vengaiah

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Rafiq Khan Mar 30, 2017 at 09:25 PM
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already tried it before. It doesn't work.

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Vengaiah Chowdary Pachava Chinna Mar 31, 2017 at 04:52 AM
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it will work , we have used it before , upper level should have t and lower level should have a or b .

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Vengaiah Chowdary Pachava Chinna Mar 31, 2017 at 04:52 AM
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it will work , we have used it before , upper level should have t and lower level should have a or b .

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Rafiq Khan Mar 31, 2017 at 03:00 PM
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I have a limitation on the RA keys. RA keys are only assigned to level 2. I cannot assign RA keys on level 3 or lower.

I tried project Structure C, T, U for level 2 and its not behaving how I want to behave. I am not sure when you are saying to put A or B on lower level. would you please explain? If you mean to assign RA keys, I cant put a RA Key on level 3 or lower.

Thanks

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Vengaiah Chowdary Pachava Chinna Apr 01, 2017 at 04:37 AM
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Hi Rafiq,

Then you should use result analysis with progress analysis. Calculate POC based on revenue at WBS level 3.

Thanking you

Vengaiah

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Rafiq Khan Apr 04, 2017 at 08:48 PM
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any more suggestions ?

Do you know any thing about the enhancements ?

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Vengaiah Chowdary Pachava Chinna Apr 05, 2017 at 03:19 AM
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KKAG0001 use this exit

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