Resource worked hours cost calculation on WBS

[hemu_katta]

Hi Experts,

In my current implementation project, resource worked hours (time entry happen in non SAP system) are pushed to WBS (No network here) via interface. When hours pushed to WBS, actual cost of hours should be hit WBS based on the rate. The rate is maintained in Contract in SD.

Requirement = During resource hours cost calculation on WBS, rate should consider from the rate maintained in contract only. How we can achieve this?

Please advise to resolve the issue

Thanks

Venkat

[kenmelching · Accepted solution]

Hi Hemu,

I agree with Paulo. There is usually a separation between cost posted and revenue billed so you can analyze the project and calculate margin. Are these just pass-through resources where you aren't allowed to have a mark-up?

Per your description of the setup the cost posted is passed to billing without any markup. This is simple to do in the DIP. You need to change the interface which is posting costs to the WBS from the time system to determine the rate. This interface should post both quantity and cost. then RRB will just pass that quantity and cost through to billing. Have the interface access the SD condition records to determine the rate.

[hemu_katta]

Thanks for fast reply,

It is customer project. Whatever the resource cost, the same will consider for billing. The billing purely driven from resource and their booked hours(T&M) only. For this we go through DP91. but thing is that the rate should pick from contract.

Thanks

Venkat

[Paulo_Vitoriano]

Hi Venkat,

That sounds a bit confusing, if the rate is in SD that is probably a customer project, but your costing does not need to equal your billing rate, otherwise you would never even know if you get any margin on that project for labor.

Within DIP profile cost accounts are normally mapped to dummy materials, and in SD you can decide if that is cost + margin or a fixed rate.

On the costing side the setup is normally different if your resources are internal or external.

Ultimately you can maintain a Z table per contract and read the rates from there within customer enhancement if you want to simulate a zero margin on labor hours.

Regards,

Paulo

[former_member218251]

DIP does consider postings in COEP as the base for the dynamic items. Thus to be able to run resource related billing, or work in process calculation using results analysis, you do have to have records in CO.

Regarding the rate: You are using a fix price project scenario, that was previously a best practice in an industry solution.

I think the best option you have is to go to note 2705882 and using the instructions in this note, ask for the download link to the professional services industry solution. In this download you will find best practice 433, including config documents. Here you find a clear description how this can be configured.

All functionality is still available in S/4HANA on premise.