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 static (old) resource-related billing.

You can use the results analysis method Derive Cost of Sales from Resource-Related Billing for:

• Sales orders
• Projects for sales orders

The cost of sales is derived from resource-related billing.

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

You are using resource-related billing (static processing).

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

Results analysis calculates inventory values and cost of sales, but not reserves.

Definitions:

R(PA) = Sum of the revenues of the billed line items

C(PA) = Sum of the costs of the billed line items

C(z) = C(a) – C(PA)

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 0

• Costs affecting net income of USD 0

• Capitalized costs of USD 20,000

You then settle the following:

• The capitalized costs to FI and EC-PCA
• No cost of sales and no revenues 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 line items to be billed. You send your customer an invoice. The invoice only includes some of the line items that incurred actual costs. The sum of the costs of the billed line items is USD 60,000. The sum of the revenues of the billed line items is USD 100,000. The order is partially delivered and partially billed. In results analysis, the system calculates the following data:

• Cost of sales of USD 60,000

• Revenue affecting net income of USD 100,000

• Capitalized costs of USD 20,000

You then settle the following:

• The cost of sales to CO-PA

• The revenues to CO-PA

• The capitalized costs to FI and EC-PCA

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 him a final invoice for USD 100,000. 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 200,000

You then settle the following:

• Cost of sales to CO-PA

• Revenues to CO-PA

• The cancellation of the capitalized costs to FI

The following values are reported in CO-PA:

The income statement shows the following values: