Result Analysis (RA) – Revenue bearing service order

Introduction:

Results Analysis (RA) is a functionality in SAP Controlling to valuate ongoing, unfinished activities, such as service orders, production orders, internal orders or projects at month-end.

Resource-related results analysis is one variation of results analysis. The DIP (Dynamic Item Processor Profile) is used to calculate the results analysis data.

There are two valuation methods for resource-related results analysis:

1. Derive Cost of Sales from Resource-Related Billing of Dynamic Items (valuation method 14).

Work in process (WIP) = cost not yet billed.

Revenue affecting net income = actual revenue.

Cost of sales (COS) = billed costs + rejected costs.

2.  Derive Revenue from Resource-Related Billing and Simulation of Dynamic Items (valuation method 15).

COS = billed costs + costs not yet billed + rejected costs.

Revenue in excess of billings = Simulated revenue for costs not yet billed

Revenue affecting net income = Actual revenue + Revenue in excess of billings.

COS and revenue affecting net income are transferred to profitability analysis (CO-PA) using settlement.The inventory values WIP and revenue in excess of billings are posted to financial accounting and profit center accounting using settlement

In this blog Result Analysis run with both these valuation methods are illustrated with system screen shots for revenue bearing Service order (order type SM02).

Prerequisites

Configuration

Key Configuration node of Service Order (in Maintenance Order Processing and Controlling solution component). Not all nodes are referred here.

1. Revenue bearing service order (Order type SM02)SAP Customizing Implementation Guide >> Plant Maintenance and Customer Service >>Maintenance and Service Processing >>Maintenance and Service Orders>> Functions and Settings for Order Types >>Configure Order Types

2.  Assignment of RA key to order type

SAP Customizing Implementation Guide >> Plant Maintenance and Customer Service à Maintenance and Service Processing >>Maintenance and Service Orders>> Functions and Settings for Order Types >> Costing Data for Maintenance and Service Orders >>Assign Costing Parameters and Results Analysis Keys.

3. RA configuration in controlling node

SAP Customizing Implementation Guide >> Controlling>> Product Cost Controlling>> Cost Object Controlling>> Product Cost by Sales Order>> Period-End Closing>> Results Analysis>> Create Results Analysis Keys

4. SAP Customizing Implementation Guide >> Controlling>> Product Cost Controlling>> Cost Object Controlling>> Product Cost by Sales Order>> Period-End Closing>> Results Analysis>>

4.1 Define Results Analysis Versions

4.2 Define Valuation Methods for Results Analysis

Note : One RA key can be assigned with on RA method.

4.3 Define Line IDs

4.4 Define Assignment for Results Analysis

4.5 Define Posting Rules for Settlement to Financial Accounting

4.6 Maintain Number Ranges for Results Analysis Documents

Prerequisite Transactions

5. Service order has to be in REL (released) status, actual cost should be posted to order, Billing may or may not be done. This is a typical service order which is in process during the month end.

Note : RA is relevant for service order which is in status REL and TECO.

RA screen shots (illustrative example – 1)

1. Cost Report of Revenue bearing service order (order Type SM02) with RA Key Items Valuation method 15 – Derive Revenue from Resource-Related Billing and Simulation of Dynamic Items.

a. When Result Analysis is run

COS = billed costs (20 (cost of spare on GI to order in this case)) + costs not yet billed (400 (10 hr @Eur 40/hr)) + rejected costs (0) = Eur 420

Revenue in excess of billings = Simulated revenue for costs not yet billed (10 hr @Eur 200/hr) =

Eur 2000

Revenue affecting net income = Actual revenue (180) + Revenue in excess of billings (2000) = Eur 2180

b. Transaction code KKA1

RA screen shots (illustrative example – 2)

2. Cost Report of Revenue bearing service order (order Type SM02) with RA calculation method – 14 [Derive Cost of Sales from Resource-Related Billing of Dynamic Items]

a. When Result Analysis is run

Cost of sales (COS) = billed costs (0) + rejected costs (0) = Eur 0

Work in process (WIP) = cost not yet billed (Eur 280 = 7 hr * Eur 40 / hr)) = Eur 280

Revenue affecting net income = actual revenue = Eur 0

In this example Planned revenue = Eur 600 is due to billing request that has been created using Tcode DP90; here 3 hrs have been considered for creating billing request ; Price / hr = Eur 200).

b. Transaction code KKA1

After running the Result analysis, settlement of service order can be done.

During this process FI document will be posted.

Additional information:

This is one of the RA process relevant CS Service order processing

The other one is relevant for processing SM01 Service order type. In this case RA key is not maintained for service order but on the service contract document. In the period end actual cost will be settled to service contract. The RA is run on service contract and then settlement of contract is done.