on 11-27-2014 5:17 AM
Dear Experts,
Here the project use RA with split creation/usage and valuated in IDs level to calculate WIP in PS.
And the valuation method is based on revenue with capitalized profit
Assumption actual cost = 1000 creation =1000 but the usage will be 900 or other.
whether i can understand creation as the actual cost incurred?and the usage how to understand it .
Hi Johan,
whether i can understand creation as the actual cost incurred?
No creation just commitment then whatever commitment will be in next process that would conver in actual let say 1000 is the commitment and 500 have done as actual and 250 has been billing then 250 (which to be billed) is the usage.
Regards,
Sanjeev
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Hi Sanjeev,
Thanks for your help,let me give you more detail info so we discuss more deeply.
our RA version and RA METHOD is like this
In my opinion,the result should be like this.
R(p) | 5,283,018.86 | |
C(p) | 2,246,883.50 | |
R(a) | 792,452.83 | |
C(a) | 673,344.03 | |
POC | 0.15 | |
C(C) | =POC*C(a) | 337,032.53 |
WIP | =C(a)-C(C) | 336,311.50 |
COGS | =C(C) | 337,032.53 |
but system give us the result like that:
R(p) | 5,283,018.86 | |
C(p) | 2,246,883.50 | |
R(a) | 792,452.83 | |
C(a) | 673,344.03 | |
POC | 0.15 | |
C(C) | 337,032.53 | |
WIP | ? | 496,055.23 |
COGS | ? | 177,288.80 |
since we use the split creation/usage and valuation at the IDs level,so we can have the WIP and COS detail
WIPR | ABW | B | 48,994.30 | Creation of WIP for line ID (requirement to capitalize) ABW (Contract Execution |
WIPR | ABW | V | -48,994.30 | Usage of work in process for line ID (requirement to capitalize) ABW (Contract |
WIPR | KON | B | 601,655.07 | Creation of WIP for line ID (requirement to capitalize) KON (Engineering) |
WIPR | KON | V | -105599.84 | Usage of work in process for line ID (requirement to capitalize) KON (Engineeri |
WIPR | MGK | B | 22,694.66 | Creation of WIP for line ID (requirement to capitalize) MGK (Material Overhead) |
WIPR | MGK | V | -22,694.66 | Usage of work in process for line ID (requirement to capitalize)MGK (Material Overhead) |
Sum | 496,055.23 |
we can see the sum equal to WIP calculated by system.
but why only KON not full usage?
Hi John,
from your attached screenshot we can not assume like you have added technical RA cost element?
because there are some dependency when you turn on split creation/uses check box.
You must define both a cost element for creation and a cost element for usage. Each of these cost elements must be of cost element category 31 (results analysis for orders/projects).
check are parameter is same as for ABW?
see you should be in touch of FICO consultant, these ABW and KON and MGK is not standard object so how we know the what basis they have configured RA process.
Regards,
Sanjeev
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