RA and Settlement

[Former Member]

Dear All,

I am using Cost based POC method for revenue recognization. Also i am assigned the P&L and Balance sheet G/L in OKG8 without creating the CE.Then i have calculated the RA and Saved. after that i am executed the settlement through CJ88.

After that i have cheked the CJI3 report but system is not showing the revenue recognized through RA in CJI3 or any other Project related reports.

So please tell me is there any way to get reflected in Projects reports.

Thanks & Regards,

Rao.

[Former Member]

Hi Rao,

Did you resolve this issue? I have a similar problem but in my case the calculated RA shows on project result but not on CJI3.

If so please post the solution.

Thanks,

Krish

[kenmelching]

The calculated revenue from Results Analysis will never show up in CJI3.  It is not a flaw in your configuration.  The RA results are stored in their own CO tables.  This is the fundamental way RA works.

To see the RA numbers use the standard PS reports that pull in the RA data.  Paulo listed one above.

You can settle the RA numbers to COPA and use COPA reporting if you wish.

[Former Member]

Hi Ken,

Thanks for your time to comment.

When using the revenue analysis with expert option E & Q. And in scenario when for a period there is actual cost but no billed revenue, RA calculates the revenue and after settlement it posts an debit to the Balance sheet as unbilled and the credit side of that entry would be accrued revenue to P&L for that period.

Now this P&L side entry should show as part of your actual project revenue right? So shouldn't it show in all PS plan vs actual or line item report as actual revenue?

next month when the revenue via billing hits the WBS, it would credit the unbilled and debit the P&L adjusting the revenue.

Am wondering if am confusing with the RA method with works with revenue plan in CJR2 vs RA which works based on Revenue calculated from actual cost?

Will appreciate if you have any further comments or suggestions.

Regards,

Krishna

[former_member388328]

Hi Krishna,

RA is used for accruing revenue for revenue recognition or WIP calculation (  which means " let us say if you incur a cost of 10 usd on project , what will be the equivalent revenue that you generate for the cost you incurred"  this calculated revenue is accrued in the month end ).

Now CJI3 ( Actual cost line items report). The name of report clearly says Actual cost line items. And RA line item is the not Actual line items , but only month end adjustment made as per requirement of Accounting standards.

When you actual raise the invoice for the project , then invoice value is reflected in CJI3 report. and in same month end you run the RA and do the settlement. Your calculated revenue which you have posted the previous month end will reversed automatically.

Thanking you

Vengaiah

[Former Member]

Hi Vengaiah,

Thanks for that great explanation.

I am not the owner of this thread so cant do more than liking your comment. But it answers my question.

Regards,

Krishna

[kenmelching]

You are mixing up actual revenue and recognized revenue.  In SAP terms actual revenue is strictly invoiced revenue.  Recognized revenue is calculated through results analysis. You'll notice that when you settle RA and the transfer to results to FI you do not get a CO document.  CJI3 shows CO document data.

RA keeps track of the previous period postings and makes postings in the current period to true everything up.

So your reporting has to access the RA data tables.

[Former Member]

Thank you very much Ken!

Regards,

Krishna

[gerry_hodgins]

Hello Rao

In the revenue reports, you can see only planned and actual revenues.

- Planned revenues form SD-documents like described in OSS note 96404,

  from billing plans on WBS elements, from cost element oriented revenue

  planning or from structure planning of revenues on WBS element.

- Actual revenues from invoices and credit memos.

When result analysis is run on the Project (KKA2 ) the report S_ALR_87013572 will

show Revenue, Revenue surplus and Revenues excess in billing.

Hope this helps

Ger

[Paulo_Vitoriano]

Hi Rao,

Accounts that are not cost elements will not reflect in CO, so it must be a special report for RA.

I believe you have the output of Result Analysis run.

Regards,

[Former Member]

Hi Paulo,

I had a similar problem. But in my the RA calculated revenue account was created as cost element.

The POC based RA calculated revenue shows in projects result CJIF and also unbilled is debited.

But the calculated RA does not show up on the CJI3 or any other project actual reports and revenue for that month.

Can you suggest what could be missing here?

Thanks,

Krishna