Forecast cost calculation clarification

[former_member210673]

I was checking on how the forecast costs will work in PS, to give a demo to client. I created an activity with ‘Total’ Planned duration: 300 HRS.. Activity is scheduled with ES: 06/08/2012; EF: 14/09/2012. When I run ‘CJ9L’ the costs are distributed for period 8 and 9 with Planned costs of 20,000 and 10,000 respectively (Activity type price = 100/hr).

Activity is confirmed for 10hrs. on 07/08/2012 as shown below, with forecast remaining duration of 290hrs..Now, when I execute CJ9L, the ‘Updated res.cost’ is showing 19,937.50 and 9,062.50 for periods 8 and 9. Tried to figure out how the values are being calculated, but ended with no clue.

Q: Please clarify on how the values are calculated for ‘Updated res.cost’

[Former Member]

Hi,

Updated residual costs is being reflected basing on confirmation has done so far for the future periods. Rather I can remaining plan costs would be re-distributed for future months.

This is what I concluded but could not find out exactly how and on what basis it is working

Regards,

Sudhakar

[former_member210673]

Dear Sudhakar,

Thanks for your prompt response. But, I am unable to comprehend what exactly you trying to point out the way system calculated costs. I do understand that it forecasts based on Acutals posted and projects to the forecast dates. But, the issue is on - how the system calculated 'Updated res.cost’ 19,937.50 and 9,062.50 for period 8 and 9 respectively.

Please let me know your thoughts.

-thnx

[former_member210673]

Sudhakar,

Think I missed the below notes mentioned in help.sap for 'Costs to Complete for Internally Processed Activities':

The activity is partially confirmed (actual costs exist).

The forecast work is distributed and valued in the activity per the distribution key, to the period between the actual date from the confirmation and the activity finish date.

Is the system referring to the Distribution Key factor mantained for 'Activity type' pricing or something else.

Please guide.

-Thanks

[Former Member]

Hi,

I am very sorry for the belated response for various reasons.

Distribution key (either equal or unequal whatever it may be) maintained for Activity type specifies how you wanted to distribute your rate per period.

While executing forecast, Distribution key SAP020 on network activity would influence while forecasting. Also the key parameter should be while exeucting, we should select the current date as parameter and not as default date that is first day of current month.

Regards,

Sudhakar

Message was edited by: Sudhakar Pappu

[former_member210673]

Dear Sudhakar,

Thanks a lot for responding.

I did execute CJ9L, by setting current date & not the 1st date of the month. The only difference I see now is that, the costs are spread to the # of periods (based on current date). If report is run Ex: 3-Oct-2012, the costs are spread until Oct. 2012 for activities which have Finish date - month of Oct.. Other than that - I am still in a gray area of How this report be used at client, as it finalizes the 'Total costs' of a activity to 'Planned costs' value regardless your actual postings.

P.S. - How do I know which Distribution key (Ex: if SAP020) is being used for network activity.

-Thanks & Regards

[Former Member]

Hi

Generally speaking I am interested to see that my planned costs should be distributed equally during entire duration of an activity. In that case I choose what SAP suggested SAP020. Press F4 in the field it will display what are other keys available.

My preference would be SAP020 for equal distribution for entire duration of an activity.

Usage of this report, the transaction distribute the amount for future periods. for example Activity A is planned from Jan to June. hours are distributed for each month.

As per plan, you are suppose to post actual hours in the month of Jan but could not take place. you skipped Feb also. Here you have planned hours for Jan and Feb but no actual hours.

In the month of March exceuted cost forecast wih current date 03.01.2012, and report will let you know what would be expected planned cost for coming or remaining periods on that activity. you will this one in column residual cost. Jan and Feb is ZERO but planned cost of those two months would be distributed to future months that is March to June.

Note that while executing cost forecast report it will not extend the duration of an activity since you no actuals for Jan and Feb. it only does, what would be the expected planned cost. One more thing, on the same report you will see the planned cost which is unaltered for each month you know what I mean plan cost for Jan and Feb also being displayed.

Hope this make sense.

Regards,

Sudhakar

Message was edited by: Sudhakar Pappu