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project POC to determine actual cost and actual revenue

Former Member
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Dear all experts,

please help me on the following issue.

i am working on a project for sales.

the project actual cost and actual revenue will be determined by the project POC.

i have read the SAP help about project progress.

but it confused me.

my first question is how can i caculated the actual POC?

is there a standard predefined way to solve it?

please give me some hints or suggestions.

thanks a lot.

Judy

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
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Hi,

Please go thru this link and i hope then it work.

http://help.sap.com/printdocu/core/Print46c/EN/data/pdf/PSPRG/PSPRG.pdf

Thanks,

Muzamil

Former Member
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Muzamil,

The POC describes the ratio of the services rendered up to a particular date to the total work to be done in an activity or project.

The way the actual POC is calculated depends on the method used for its calculation. In the online help you will find details on the different methods.

Actual costs and revenues are not calculated based on the POC. On the contrary, these actual figures are the ones to determine the POC (if the method selected depends on such figures).

I suggest to take a close look into the online documentation.

Best regards

Martina

Former Member
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Martina,

I agree with you.

Actual costs and revenues are not calculated based on the POC. On the contrary, these actual figures are the ones to determine the POC (if the method selected depends on such figures).

I have replied this thread with a link for progress analysis in which there are various methods by which we can calculate the progress.

So it depends on the business how they want to calculate progress whether it Cost proportionality ,Time proportionality,Milestone method or some other method.

Muzamil

Former Member
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Muzamil,

my response was intended for Judy...I mixed the names!

Sorry both for the missunderstanding

Cheers!

Martina

virendra_pal
Active Contributor
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I think the question should have been how to arrive at calculated (not actual) costs and revenues based on POC.

The functionality for this is Results Analysis - here you can use cost based POC, rev based POC, manual POC using SKF or use POC from progress Analysis - here the actual costs and actual revenues could be used to determine POC based on the chosen method

If POC from progress analysis is used then the issue of time proportionality or the relevant measurement method comes into play.

So basically, SAP has the required tools to deliver the solution, but the user has to be clear of the requirements from a business perspecive.

Regards

Virendra

Former Member
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thank you very much for your replies.

let me clarify myself.

the project is to decrate the house.

the cost and revenue are determined by the project actual POC.

if it can not be done.

how can i do to meet their requirements.

thanks a lot.

Judy

Former Member
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Dear Virendra Pal,

I want to calculate the cost and revenue based on the calculated POC

which RA key i should use?

could you give some suggestions?

thanks a lot.

Judy

virendra_pal
Active Contributor
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Hi Judy

First thing what is the basis of calculation of POC - you and the business need to decide this

Then you have to configure an RA Key to include the method of POC determination as required.

Basically this is major consulting issue and I cannot just say use RA Key Z00001 as I have no idea what you have in your configuration.

Get an SAP PS consultant who has implemented RA and also a good CO consultant who know RA - also to understand the basics I suggest go through SAP help

Regards

Virendra

Former Member
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thanks for your reply.

i am working on the proposal.

i just want to know. when the project is under way, i can get the caculated revenue and cost from POC* planned total revenue and total cost.

am i right?

when the project is billed, and we get the actual revenue, how shall i do next? shall i have another RA key ?

i have no one to consult. thanks if you give some advice.

Former Member
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just one more question,

how to link the project progress POC with RA key.

i haven't found any connection with them.

thanks.

Judy

Former Member
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Hi,

Can anyone detail the steps involved in carrying out RA with Valuation Method 7 with progressive value analysis. Here, we can give a percentage of POC into the system as certified by the Engineers unlike Valuation method 3 where the POC is calculated on the basis of actual costs incurred.

In the case of valuation method 3, only revenue is analysed by the system with reference to the POC and necessary entries are posted as Revenue surplus or Revenue in excess of billings. Whereas in the case of valuation method 7, both the revenue and costs are analysed and necessary provisions are made both for revenue and costs.

Regards,

Judy

Former Member
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Hi,

Go through help.sap.com to study the 07 method.

Also check IDES,you can get a clear idea about this method.

Muzamil