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Former Member

Settlement in Customer Projects

Dear all,

In our scenario, we have customer projects which are settled to Profitability segment. The client doesn't want to settle the projects periodically. The client wants to settle the project only onces when the project is over. In this case the project will hold cost till the last day.

Client intents to use RA only for information purpose and not for posting the RA value on the project. Hence clients decision seems genuine.

What are the impact of this decision? How often do we really have to settle the project in this situation?

What is the impact of not settling the project at all?

Request your opinion on this issue.

Warm regards,

Srinivas Potluri

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3 Answers

  • Best Answer
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    Former Member
    Mar 04, 2008 at 08:38 AM

    Hi,

    If RA is not a business requirement, the only issue is that all account assigned WBS elements will have balances in them and hence you cannot close the projects. Then ofcourse, consequential issues related to archiving etc.

    Muraleedharan.R

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    • Former Member Former Member

      Hi Srini,

      The business process as required by you is possible & i don't think there will be any impact. Project settlement can be made on completion of project iteself, n't periodically as your identifying cost / revenue externally.

      RA can be used to identify calculated revenue / cost & n't to consider real posting into FI.

      Few queries, i would like to ask on your business scenarios. If the project settlemnt is after completion of project only, how project profitability is obtained from period to period. How is balance sheet reporting for the ongoing projects.

      Hope this will help you.

      Regards,

      Rakesh Pradhan

  • Mar 06, 2008 at 08:06 PM

    Hi Srini,

    Sky will not fall down if you settle at end of the project.

    If you are recognising Costs and revenues outside SAP system

    -I am Curious to know - why do you use SAP Project Systems?

    The only issue I can foresee is , You have to post huge amount of costs and revenue in a particular period and it will not be distributed in periods.

    Cheers,

    Srinivasan Desingh

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    Former Member
    Mar 08, 2008 at 02:58 PM

    Thank you all for your answers.-- Srinivas Potluri

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