Requirement Summary
The user requires the ability to calculate percentage of completion without planned costs, using total revenue minus planned margin as the cost basis.
Definitions:
POC – Percentage of Completion
C(a) – Actual Cost
C(p) – Planned Cost
R(p) – Planned Revenue
R(PA) – Actual (Realizable) Revenue
M – Margin (expressed as %)
The Percentage of Completion calculations are as follows:
POC = C(a) / C(p), where C(p) = R(p) – (R(p) * M)
Percentage of Completion is equal to Actual Cost divided by Planned Cost, where Planned Cost is equal to Planned Revenue minus Planned Margin
R(PA) = POC * R(p)
Actual (Realizable) Revenue is equal to Percentage of Completion times Planned Revenue
Overview of Solution
• The solution will leverage configuration in the Sales and Distribution and Controlling modules along with an enhancement in an SAP-provided user exit to manipulate the cost basis used in the POC calculation. This solution relies heavily on standard SAP functionality.
• Pricing will be updated in Sales and Distribution to store the planned margin (if this has not already been done).
• A custom Results Analysis (RA) key will be configured for use in this scenario.
• An enhancement will be written that, when the custom RA key is selected, will
redetermine the cost basis using the formulae specified above.
• Standard SAP RA functionality will execute the POC calculation and posting of revenue accruals based on the modified cost basis.
Configuration Required
Sales and Distribution
• Define a pricing condition type to store planned margin as a percentage
• Add the pricing condition type to the pricing procedure, flag as statistical. Add subtotal to pricing procedure to store planned cost based on net value minus margin in sales doc
Note: determine, based on the business’s needs, whether the pricing condition type should be entered manually for each sales document or determined automatically using condition records.
Controlling
• Define a new results analysis method as a copy of method 03, titled “POC with Rev Minus Margin Basis” (as space allows)
• Create a new Results Analysis Key using the newly created method
Development Required
Results Analysis
Enhance user exit EXIT_SAPLKKAG_002 to, at the time of RA run, only if the RA method is the newly defined method, retrieve the subtotal (net value minus margin) from the sales document. This value will be copied to the XKALXKAG-PLERL field. This will override the cost basis used in the POC calculation with the revenue – margin value, thereby eliminating the need to maintain planned cost.