Skip to Content
0
Former Member
Sep 07, 2010 at 06:53 AM

Results analysis using 'quantity based POC' method

115 Views

Hi Experts

My client uses RA method 'quantity based POC' method

For example, the following are the statistics out of RA:

o Planned revenue = R(p) = 600000

o Actual revenue = R(a) = 150000

o Actual cost = C(a) = 30500

o Revenues affecting net income = R(c) = POC x R(p) = 19% x 600000 = 114000

o Cost of sale = Actual cost = 30500

o Calculated profit = 114000 u2013 30500 = 83500

o Revenue surplus = 150000 - 114000 = 36000

Considering this, settlement results (FI postings)?

In case the revenue surplus in negative, what will be the postings?

warm regards

ramSiva