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Customer projects

Dear All,

Till now i am working at investment projects now i am at customer projects.I am selling BTS towers to my customers.I've made structure for it but client need to go at WBS element level as the material is procured at WBSE level.

Tell me how can i get the whole actual cost of project.As the material is assigned to wbse level only.But how can i get other cost as services,wages and other if activities is only for scheduling or date monitering.

Regards.

Sukhveer

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2 Answers

  • Best Answer
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    Former Member
    Dec 22, 2008 at 07:06 AM

    If you have to post costs to the project, you need to tick the 'Account Assignment Element' under the operative indicators in the WBS element. Please check for the same.

    Also check if the network is 'Header assigned' or 'Activity Assigned' for cost integration.

    Venu

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    • Former Member Sukhveer Singh

      Using the WBS costing methods like Unit costing, Cost element costing etc you can plan the costs without Activities also. In this you directly plan the costs without network/ activity costing.

      However to post costs either through material/ service/ etc the WBS needs to ba account assigned. The actual costs flow to the project on confirmation of the activities.

      Hoep this clarifies

      Venu

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    Former Member
    Dec 22, 2008 at 07:26 AM

    Recommendations in Customer Projects

    In customer projects, the actual costs are settled, but accrued amounts (such as costs of sales or inventory from which revenue can be generated) are not. You carry out this settlement at billing element level.

    For customer projects which you settle in full to Profitability Analysis, it is a good idea to generate the settlement rule using a strategy defined in the IMG. The standard system we deliver includes a strategy for automatically generated settlement rules for customer projects.

    The system uses this strategy to generate the following:

    u2022 For all billing elements:

    o Results analysis key

    o Settlement to profitability segment

    o A settlement profile providing for settlement in full

    u2022 For all other WBS elements

    o No results analysis key

    o A settlement profile providing for no settlement

    If account assignment elements within a billing structure do not contribute to the cost of sales, you can change the settlement rule manually.

    If you maintain the settlement rule manually, we recommend you proceed as follows:

    u2022 Use a project profile with a settlement profile that forbids settlement. This initially prevents settlement for all the WBS elements in the project.

    u2022 Change the settlement profile in the billing elements manually. Define a settlement profile that permits settlement.

    u2022 If you want to settle account assignment elements (in whole or in part), you must change the settlement profile for account assignment elements manually.

    You change the settlement profile in the settlement rule for the object by choosing Goto  Settlement parameters. There is a parameter in the settlement profile which you can use to define whether settlement is forbidden, allowed, or required.

    Avoid making settlements within the project hierarchy. These can adversely affect system performance.

    For more information on settling customer projects, refer to Settlement in Product Cost Controlling .

    Regards,

    ANSAR

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