Procedure for interim revenue recognition in Project Control (PCS)This topic describes the steps to calculate interim COGS and interim revenue for a PCS project. Step 1. Project Details (tipcs2130m000) In the Project Details (tipcs2130m000) details session, you must determine in the Percentage of Completion Calculation Method field which method is used to calculate the Percentage of Completion (POC) of the PCS project. The selected POC is used to calculate the interim COGS and revenue. In the Project Control Parameters (tipcs0100m000) session, you can also select a POC method. This method is used as a default value in the project details of PCS projects that are generated from a sales order line by using the Generate (Project PCS) Structure for Sales Orders (tdsls4244m000) session. Step 2. Calculate Interim COGS and Revenues by Project (tipcs3290m000) To actually calculate interim COGS and revenues for one or more PCS projects, you must run the Calculate Interim COGS and Revenues by Project (tipcs3290m000) session. LN carries out the following steps:
Step 3. Interim COGS and Revenues by Project (tipcs3190m000) You can view the calculated COGS and revenue in the Interim COGS and Revenues by Project (tipcs3190m000) session. Some of the calculated amounts and the POC percentage, you can adjust manually. For every PCS project one or more interim COGS/revenues can be listed. From the appropriate menu, or with the buttons, you can handle the rest of the interim COGS and revenue procedure. This described in the next steps of the procedure. Step 4. COGS by Cost Component (tipcs3191m000) If for a PCS project the Post Interim COGS and Revenues by Cost Component check box in the Project Details (tipcs2130m000) details session is selected, you can view in the COGS by Cost Component (tipcs3191m000) session how the COGS is distributed over cost components. You must start this session from the appropriate menu of the Interim COGS and Revenues by Project (tipcs3190m000) session, or by clicking Cost Components. If the interim COGS and revenue are not yet confirmed and/or posted, you can still modify the estimated costs and the confirmed interim COGS. Step 5. Confirm interim COGS and revenue After viewing and adjusting data in the Interim COGS and Revenues by Project (tipcs3190m000) session and/or the COGS by Cost Component (tipcs3191m000) session, you can confirm the data by clicking (de-) Confirm in the Interim COGS and Revenues by Project (tipcs3190m000) session. If after confirming, you still want to make changes, you can click (de-) Confirm again to deconfirm the data. To confirm interim COGS and revenue, you can also start the Confirm and Post Interim COGS and Revenues by Project (tipcs3291m000) session, select the Confirm Interim COGS and Revenues check box, and run the session. Confirm and Post Interim COGS and Revenues by Project (tipcs3291m000) Step 6. Post interim COGS and revenue After confirming, the interim COGS and revenue must be posted to the General Ledger module in Financials. In the Interim COGS and Revenues by Project (tipcs3190m000) session, start the Confirm and Post Interim COGS and Revenues by Project (tipcs3291m000) session from the appropriate menu, or click Confirm & Post. Select the Post Interim COGS and Revenues check box, and run the session.
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