Depending on the contractual agreements, you can invoice your customer for the expenses incurred in each period for consumables, services, and taxes. These expenses can be compared with the revenues in the P&L statement.

You can use static resource-related billing or resource-related billing of dynamic items. This results analysis method can only be used with resource-related billing of dynamic line items.

You can use the results analysis method Derive Revenue from Resource-Related Billing and Simulation of Dynamic Items for:

• Sales orders
• Projects
• Service orders with revenue, internal orders with revenue

The cost of sales is derived from the resource-related billing with dynamic items. The cost of sales is calculated in the amount of the actual costs incurred according to the DIP profile.

You can calculate inventory values with this method. You cannot calculate reserves.

You are using resource-related billing based on dynamic items.

No planned values are used in this results analysis method. Therefore it is not necessary to establish planned costs for results analysis.

In results analysis on the basis of dynamic items, quantities are recorded for the line IDs for the cost of sales, the revenues, and the inventory values. You must enter a "B" in the Quantities indicator in the Expert Mode. In the standard system, this is the default setting for results analysis methods 14 and 15. To ensure that the units of measure are updated, you must also enter a unit of measure in the update for the relevant line IDs.

You can create your own line IDs for costs that are not to be invoiced. You can use the apportionment reason in Customizing in the Assignment for this purpose. An apportionment reason is specified when line items are invoiced and indicates why the line item is not invoiced.

This results analysis method calculates inventory values and the cost of sales, but not reserves (or no revenue surplus).

Definitions:

R(PA) = R(a) + R(z)

C(PA) = C(a)

R(z) = Simulated revenue for costs that have not yet been billed (revenue in excess of billings)

Revenue affecting net income is the sum of the actual revenues and the revenues simulated on the basis of the actual costs that have not yet been invoiced.

The cost of sales is equal to the actual costs.

Revenue in excess of billings is calculated on the basis of the actual costs that have not yet been invoiced and the transfer price surcharge (corresponding to pricing in SD). The revenue in excess of billings is calculated by internally linking the incurred costs to pricing. This determines what the revenues would be for these costs.

Results analysis data cannot be calculated on the basis of statistical key figures because this would assume the existence of costs and revenues that have not yet been updated.

The transfer price surcharge is 54%.

In period 01 you have actual costs of USD 20,000 but no revenues. In results analysis, the system calculates the following data:

• Revenue affecting net income of USD 30,800

• Costs affecting net income of USD 20,000

• Revenue in excess of billings of USD 30,800

You then settle the following:

• Revenue in excess of billings to FI and EC-PCA
• Cost of sales to CO-PA
• Revenue affecting net income to CO-PA

The following values are reported in CO-PA:

The income statement shows the following values:

In period 02 actual costs increase to USD 80,000. This is the sum of the items to be billed. You send your customer an invoice. The invoice only includes some of the items that incurred actual costs. The sum of the costs of the billed items is USD 60,000. The sum of the revenues of the billed items is USD 92,400. The order is partially delivered and partially billed. In results analysis, the system calculates the following data:

• Cost of sales of USD 80,000

• Revenue affecting net income of USD 123,200 (92,400 + 30,800)

• Revenue in excess of billings of USD 30,800

You then settle the following:

• The change in the cost of sales to CO-PA

• The change in the revenue affecting net income to CO-PA

The following values are reported in CO-PA:

The income statement shows the following values:

In period 03 actual costs increase to USD 130,000. You deliver the remaining units to your customer and send a final invoice for USD 100,000. The sum of the billed amounts is USD 192,400. The order is now fully delivered and fully invoiced. In results analysis, the system calculates the following data:

• Cost of sales in the amount of the actual costs of USD 130,000

• Revenues affecting net income in the amount of the actual revenues of USD 192,400
• No revenue in excess of billings The revenue in excess of billings calculated in the prior period is canceled in period 03.

You then settle the following:

• The change in the cost of sales to CO-PA

• The change in the revenue affecting net income to CO-PA

• The cancellation of the revenue in excess of billings to FI and EC-PCA

The following values are reported in CO-PA:

The income statement shows the following values:

You can find information on resource-related billing under