Introducing Project Control - Sales

This scope items depicts the integration of projects with the sales orders that enable the direct flow of revenues to the projects. In conjunction with the costs incurred, the margin can be easily analyzed.

As a core ERP functionality, the integration of projects with the sales orders enables the direct flow of revenues to the project. In conjunction with the costs incurred, the margin can be easily analyzed. This scenario covers the fixed priced 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. When 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.

The benefits are as follows:

• Support fixed priced 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

• When the Multiple Sales Order Items Scenario is enabled, multiple pricing and billing relevant sales order items can be assigned to the same billing work package.

The key process steps of Introduction to Sales Order Processing with Project Account Assignment (4I9) include the following:

• 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