
Project Control - Sales (4I9)
As a core ERP functionality, the integration of projects with the sales orders enables the direct flow of revenues to the project. The margin can be easily analyzed along with the incurred costs. This scenario covers the fixed-price project billing with the possibility of a down-payment and billing plan. Using the Projects with Revenue profile, the user can create a hierarchy as an accounting structure, set up billing elements, and plan costs and revenues. As soon as the project is released, actual costs and revenues are captured, allowing the project profitability to be analyzed. At the same time, the revenue is recognized with each cost posting. At the period end, no settlement run is necessary as the postings already have the CO-PA characteristics maintained in the settlement rule or derived from the sales order.
Key Process Steps Covered
- Create project with Projects with Revenue profile
- Create sales order items with billing work package as account assignment
- Create a billing plan with down payment
- Create delivery, execute picking and post goods issue
- Process billing
- Monitor the project profitability and recognized revenue
Benefits
- Support fixed-price billing, down payment, and free-of-charge processes
- Get actual revenue postings driven by sales order processing
- Get real-time availability of revenue recognition data and profitability
- Save manual effort for revenue recognition postings
- Support more complex hierarchical project accounting scenarios through enablement of multiple billing elements within a project
Where is Project Control - Sales(4I9) being used?
This Scope item is used in the following way:
- As a management function of Cost Management and Profitability Analysis within Finance Scope Item Group
- As a support function of Enterprise Portfolio and Project Management within R&D/Engineering Scope Item Group