To use financial resultThe financial results of the project or contract costs, revenues, and profits can be determined:
Financial interim results The interim results are the financial results of a project or contract that are not yet completed (for example, the profit or loss postings at the end of a financial year). There are two interim results types:
The interim results costs and the interim results revenues are linked to default entry accounts and default reverse entry accounts in Financials. The financial results types are used as default values for maintaining or generating interim results in the Interim Results (tpppc3150m000) session or in the Generate Interim Results (tpppc3250m000) session. Use the Generate Interim Results (tpppc3250m000) session to generate the interim results. You can use the Interim Results (tpppc3150m000) session to view and modify the interim results. You can select the revenue recognition and cost of goods sold methods to generate the financial interim results in the Generate Interim Results (tpppc3250m000) session. You can set a limit on the revenue to be recognized. A maximum percentage is defined on the project and extension level. The default value is set to 100%. But the value can be overwritten. The percentage times the contract amount gives the maximum revenue that can be recognized (until the completion of the project). The revenue recognition limit is valid for all revenue recognition methods except the Completed Project method. Methods to recognize Revenue: Methods to determine Cost of Goods Sold (COGS): Financial final results If a project is finished, you can use the Process Transactions (tpppc4802m000) session and select the Financial Result options to generate the final financial result. Common changes the project status to Closed and sets the financial result status to Result Determined. If you close the project, the financial results are reversed. The final result is available in the Project Progress module.
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