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Result Analysis & Settlement- Cost Based POC Method-

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Dear SAP Guru's

 

Assumption:


RA is done at end of a period and both PLAN & ACTUAL data upto RA Period are considered not just for the Period RA is being executed.

 

Method used : Cost based POC -03

 

for the first period -

 

All the values are coming correct in RA and subsequently i did the settlement.

 

RA Calculation:

Planned Revenue:  100000 AED

Planned Cost          80000 AED

Actual revenue        0 AED

Actual Cost            20000 AED

Percentage of Completion = Actual Cost/Planned Cost*100

        = (20000/80000)*100= 25%.

Calculated Revenue  = POC*Planned Rev.  = 25%*100000 = 25000 AED

Revenue in Excess Billing =  Calculated revenue- Actual revenue =  25000-0= 25000 AED.

Profit = Calculated Revenue – Actual Cost= 25000-20000 = 5000.

 

all fine for first period.

 

For the second Period:

 

Period –II.


Expected calculation are

In the period 2, you send an invoice of 40000 AED to your customer and also your actual costs in the project increased to 40000.

RA Calculation:

Planned Revenue:  100000 AED

Planned Cost          80000 AED

Actual Revenue        40000 AED

Actual Cost              40000 AED

Percentage of Completion = Actual Cost/Planned Cost*100

        = (40000/80000)*100= 50%.

Calculated Revenue  = POC*Planned Rev.  = 50%*100000 = 50000 AED

Revenue in Excess Billing =  Calculated revenue- Actual revenue = 50000-40000= 10000 AED.

Profit = Calculated Revenue – Actual Cost= 50000-40000 = 10000.

 

But When i am running the RA actual cost under the section cumulative it is only picking up the actual cost(20000) which has been booking in the 2nd period only.

 

which changes the entire calculation and i get different result.

Actual revenue  40000 AED  , actual cost 20000 AED  POC - 25%

Reveune affecting net income 25000 AED Profit 5000 AED

Revenue surplus 15000 AED.

 

Please correct me i have got wrong understanding or i did missed any thing.


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