Results Analysis Method 7, POC Method Based On Project Progress Value Determination - SAP Blogs
Results Analysis Method 7, POC Method Based On Project Progress Value Determination - SAP Blogs
Results Analysis Method 7, POC Method Based On Project Progress Value Determination - SAP Blogs
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This blog is the last in the trilogy of the more advanced Results Analysis
Techniques, where the POC (percentage of completion) is based on project
progress.
In my previous blogs I had detailed, RA Valuation Method 14, how Cost Of Sales is
determined based on the cost mapping from GL accounts to the Sales Order line
item using the DIP (Dynamic Insertion Profile) and RA Valuation Method 15,
Derive Revenue from Resource-Related Billing and Simulation of Dynamic Items
https://blogs.sap.com/2021/01/25/results-analysis-method-7-poc-method-based-on-project-progress-value-determination/ 1/11
5/30/23, 10:32 AM Results Analysis Method 7, POC Method Based On Project Progress Value Determination | SAP Blogs
You can refer to the detail around RA Valuation Method 14 “derive cost of sales
from resource related billing of dynamic items” here
https://blogs.sap.com/2020/10/27/results-analysis-using-method-14-derive-
cost-of-sales-from-resource-related-billing-of-dynamic-items/
https://blogs.sap.com/2020/11/13/how-to-configure-and-setup-results-
analysis-valuation-method-15-derive-revenue-from-resource-related-billing-and-
simulation-of-dynamic-items/
Details
For SAP customers in the E&P business or where a significant portion of the
business comes from executing contracts, large volumes and where accounting
policy dictates that cost and revenue need to be matched results analysis
method 7 can be used.
When the RA key for this method is setup some additional elements need to be
included in the setup, e.g. progress version.
Progress version is controlling area specific and defines the control data for POC
and earned values. For progress to be recorded and checked against planned
progress. It is mandatory to maintain progress version along with method of
calculation. The system records progress analysis data in the progress version.
Statistical Key Figures (SKF) for POC results analysis needs to be created if it not
created and assigned to the value category ‘030’
https://blogs.sap.com/2021/01/25/results-analysis-method-7-poc-method-based-on-project-progress-value-determination/ 2/11
5/30/23, 10:32 AM Results Analysis Method 7, POC Method Based On Project Progress Value Determination | SAP Blogs
SKF setup
https://blogs.sap.com/2021/01/25/results-analysis-method-7-poc-method-based-on-project-progress-value-determination/ 3/11
5/30/23, 10:32 AM Results Analysis Method 7, POC Method Based On Project Progress Value Determination | SAP Blogs
We have a project for two months with planned revenue of 80,000 Euro and
Planned Costs of 44,000 Euro. There are two WBS elements, one for Design
which is to be finished in the first month and the other for Build & Finish which is
planned to start the first month and is planned to be 35% complete at
the end of the first month and completed by the end of second month .
First month
https://blogs.sap.com/2021/01/25/results-analysis-method-7-poc-method-based-on-project-progress-value-determination/ 4/11
5/30/23, 10:32 AM Results Analysis Method 7, POC Method Based On Project Progress Value Determination | SAP Blogs
At the end of the first month progress – build and finish activity
https://blogs.sap.com/2021/01/25/results-analysis-method-7-poc-method-based-on-project-progress-value-determination/ 5/11
5/30/23, 10:32 AM Results Analysis Method 7, POC Method Based On Project Progress Value Determination | SAP Blogs
Net cost recognized = cost of sales from RA calculation – actual costs incurred
for the month ; 17,999.96 – 7,000 = 10,999.96
The second FI entry captures the profit which is settled to an Internal Order
since CO-PA is not active.
Second Month
https://blogs.sap.com/2021/01/25/results-analysis-method-7-poc-method-based-on-project-progress-value-determination/ 6/11
5/30/23, 10:32 AM Results Analysis Method 7, POC Method Based On Project Progress Value Determination | SAP Blogs
At the end of the second month progress – build and finish activity
https://blogs.sap.com/2021/01/25/results-analysis-method-7-poc-method-based-on-project-progress-value-determination/ 7/11
5/30/23, 10:32 AM Results Analysis Method 7, POC Method Based On Project Progress Value Determination | SAP Blogs
Conclusion
This blog should get you a jump start and will hopefully help you to quickly setup
and test this solution when you need to address the requirement to matching
costs and revenues for typical E& P customers.
In case you do have questions, I would be more than happy to answer them.
Please post them here in Q&A.
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Progress Based RA
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5/30/23, 10:32 AM Results Analysis Method 7, POC Method Based On Project Progress Value Determination | SAP Blogs
How to configure and setup Results Analysis Valuation Method 15 - Derive Revenue from Resource-Related
Billing and Simulation of Dynamic Items
By Vinod Anand Sharma Nov 13, 2020
An Introduction to Event-Based Revenue Recognition with Customer Projects in SAP S/4HANA Cloud
By Stefan Walz May 16, 2019
Related Questions
Progressive Version -Time Proportional Method - Period Based
By VENKATASUBRAMANIAN RAMACHANDRAN Jun 27, 2020
4 Comments
Amarender Challa
January 25, 2021 at 2:09 pm
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Hi Vinod!
https://blogs.sap.com/2021/01/25/results-analysis-method-7-poc-method-based-on-project-progress-value-determination/ 9/11
5/30/23, 10:32 AM Results Analysis Method 7, POC Method Based On Project Progress Value Determination | SAP Blogs
Can you detail how did you get to the POC percentages?
kind regards
Mayumi
Like 0 | Share
Penghong Jiang
February 22, 2022 at 9:30 am
Thanks Vinod,
It is a very good blog. Can you please help to demo method 10 for PS RA?
Regards
Fisher
Like 0 | Share
Hi Vinod,
Thanks for sharing this information. Could you please elaborate how you arrive at the POC pop up screen
shown in the below screenshot. Thanks in advance
https://blogs.sap.com/2021/01/25/results-analysis-method-7-poc-method-based-on-project-progress-value-determination/ 10/11
5/30/23, 10:32 AM Results Analysis Method 7, POC Method Based On Project Progress Value Determination | SAP Blogs
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