Planning Revenue for Projects

Lisa works as a sales specialist at Hybrid Machinery and discusses with James, who works as a project planner, how revenues can be planned in the project for which they are responsible.

In the SAP Project System (PS), you can plan revenues for projects in the following ways:

• Manual revenue planning for work breakdown structure (WBS) elements
• An SAP PS billing plan assigned to WBS elements
• Sales and Distribution (SD) documents account assigned to WBS elements

To plan revenues for projects, you specify billing elements. A billing element is a WBS element that is specified for billing. The operative billing element indicator must be active.

We’re now going to focus on revenue planning with sales order items being account assigned to WBS elements. The figure Sales Order and Billing Plan illustrates how revenues are planned with SD documents. For example, your customer has placed an order for a custom development project, F-100##, and they are willing to take over all or a part of the costs. You have agreed a sales price of EUR 75,000 with the customer. After the completion of production (activity 0100) and final approval (activity 0110), partial payments are due for both. You enter this information in the system by defining billing milestones for the activities.

You assign the sales order item to the billing element of the project and copy the billing milestones for the activities 0100 and 0110 to the billing plan of the order item. This assignment and billing plan forms the basis for planning revenues in your project.

In the project execution phase, the locks for the individual items in the billing plan are lifted automatically when the activities 0100 and 0110 are confirmed. After a billing run, the actual project revenues can also be updated automatically in this way.