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Jan 22, 2019 at 11:05 AM

Settlement of Result Analysis Data (Calculated Revenue) in Projects


Hi Experts,

We are using RA method “Revenue-Based Method with Profit Realization”. I have configured RA and Settlement configuration (attached screen shots).

In OKG4, I have maintained LID as COP with RA Category as “K- Costs” and maintained Secondary cost elements for “WIP”, “Reserves” and “COS/Revenue”. Hope, it is correct so far.

The RA is running fine in Project’s Released status when there are only Costs, no Revenue. RA is calculating WIP and Capitalized Profit. During settlement, the system is settling WIP to Balance sheet account.

When we are posting Actual revenue; the RA is calculating Revenue Effecting Net Income and Costs Affecting Net Income, Calculated Profit, WIP and Capitalized Profit.

Based on the values/amount calculated by RA and the Result Analysis Line Items (CJIF) report, I could interpret as below.ra-config1.jpgra-config2.jpgra-run1.jpgra-run2.jpgproject-settlement.jpgfirst-ra-cjif-ra-line-items.jpgsecond-ra-cjif-ra-line-items.jpgsettle-fi-doc-and-ra-run2.jpg

VLRV (Valuated Actual Revenue/Revenue Affecting Net Income),

VLCO (Valuated Costs), i.e. Actual Costs,

CLCO (Calculated Costs) i.e. Cost Affecting Net Income

CAPP (Capitalized Profit) i.e. (Revenue in Excess of Billings – WIP)

COSR (Cost of Sales with Requirement to Capitalize) i.e. Cost Affecting Net Income

CLRV (Calculated Revenue) i.e. Actual Revenue + WIP + Capitalized Profit

PLCV (Planned Costs of Valuation) i.e. Planned Costs

PLRV (Planned Revenue of Valuation) i.e. Planned Revenue

Am I right here?

My queries are:

  • Are Cost of Sales, Calculated Costs and Cost Affecting Net Income same in case of Customer Projects with the said RA method?
  • We are not using CO-PA. In this case, how the system will move/settle Calculated revenue (CLRV) and Costs Affecting Net Income (CLCO)?
  • As per RA line items, the calculated revenue has been posted with a Cost Element (93100003) which was maintained in OKG4 in “COS/Revenue”. During settlement when there is an Actual revenue, the system is throwing an error stating i.e. “Message no. KD503 - Complete allocation structure Z1.” Cost element 93100003 cannot be assigned to a settlement cost assignment in allocation structure Z1, and therefore it cannot be assigned to a settlement cost element.

Kindly suggest to correct my understanding and issue.