(08) COS from "Old" Resource-Related Billing

Use

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.

Note Note

Results analysis method 08 is based on the method of resource-related billing provided in releases before 4.5A. You select this type of resource-related billing in Customizing for Plant Maintenance under Maintenance Order Management Basic Settings Quotation Creation and Billing for Service Orders Static Processing (Procedure before 4.5 ).

End of the note.

Prerequisites

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

Choose a results analysis method in simplified Customizing for Product Cost by Sales Order under Period-End Closing Results Analysis Valuation Method .

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

Features

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)

Note Note

The revenues are calculated in SD pricing on the basis of the billed line items.

End of the note.

Example

Period 01

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:

Profitability Analysis

Actual Revenues	0
Calculated cost of sales	0
Profit	0

The income statement shows the following values:

Income Statement

Expense	Revenue
Actual costs 20,000	Inventory increase Capitalized costs 20,000
Profit 0
20,000	20,000

Period 02

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:

Profitability Analysis

Actual Revenues	100,000
Calculated cost of sales	60,000
Profit	40,000

The income statement shows the following values:

Income Statement

Expense	Revenue
Actual costs 80,000	Actual revenue 100,000
Profit 40,000	Inventory increase Capitalized costs 20,000
120,000	120,000

Period 03

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:

Profitability Analysis

Calculated revenue	200,000
Calculated cost of sales	130,000
Profit	70,000

The income statement shows the following values:

Income Statement

Expense	Revenue
Actual costs 130,000	Actual revenue 200,000
Profit 70,000
200,000	200,000

See also:

For information on Customizing resource-related billing, see the Implementation Guide for Plant Maintenance under Maintenance Order Management Basic Settings Quotation Creation and Billing for Service Orders .