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ERROR - Junior Consultant is not relevant for cost and revenue planning.

former_member613804
Participant
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Dear Friends,

I am trying to add a role in the work package, and when i click on "recalculate" button costs are not getting reflected and system is populating this ERROR. Attached screenshot for reference. Can someone kindly suggest..!

Thanks & Regards,

Accepted Solutions (1)

Accepted Solutions (1)

Cappe77
Participant
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Hi sathyamsighakolli have you set correctly the cost of service in the app ‎#manage Service Cost Rates?

It seems from the screenshot that you don't have the right combination for determination of the planned price

former_member613804
Participant
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Hi simone.capellini

I have maintained rates in the combination of Cost centre, Activity, period. attached is the screenshot for the reference.

Cappe77
Participant
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Hi, the work package starts 30.03 and the cost rates is valid from 4th period. Please try:

1) change the validity of the cost rates and starts it from period 3 or

2) change the cost rate and insert also activity type and cost center to see if in this case the planning functions

For my side the problem is 1)

former_member613804
Participant
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Hi simone.capellini

thanks for the response,

I have created a new project from 01.04.2019, created a new activity from validity 01.04.2019. Maintained the cost rates for company code and activity combination (without costcenter)

and assigned as a role to work package.

Still i am getting the same error.

Attached is the screenshot for your reference.

Thanks & Regards,

Cappe77
Participant
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Sorry sathyamsighakolli but the problem is the activity type. In the professional services you have 20 activity type T001-T020 (linked to material T001-T020) to use for manage workpackage's items by time. Activity type from U001-U020 to manage workpackage's item managed for unit. You can't create another activity type to manage in the professional services. I invite you to see my previous post https://answers.sap.com/questions/13238795/view.html

former_member613804
Participant
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Hi simone.capellini ,

Thanks for the prompt response.

I have gone through the post (link) and understood that, Whenever i create a new Role (activity), i have to create a material in parallel (by copying the T* materials).

I will perform this and will get back on this. After creating both the Activity and T* Material, do we need to assign them both somewhere..?

Cappe77
Participant
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Hi sathyamsighakolli the problem to create a new activity type/material for professional services is for revenue recognition. I report from the link the sabarish.meenakshisundaram 's reply to my question:

"For T&M projects, the service materials and expense materials are already linked to activity type and resource IDs (expenses) in the background to enable material determination. So, if you use them in your planning and record actuals against them, the DIP processor that creates Billing Request through Billing Proposals wouldn't be able to generate the Debit Memo Request as it doesn't know which service material or expense material to determine for actuals entered.

For fixed price projects, billing is not tied with the actuals entered (no DIP profile used in here) and it's through the amount setup in the Billing Plan definition. Billing is not having any issue for FP project. But your planned cost collection wouldn't still be effective as the custom activity types are not considered for planning.

Your POC based revenue recognition will still be using Planned cost from Project to calculate Percentage of Completion. So you need planned cost to be calculated as and when you add the activities in your project.

Hope it makes clear. I can explain a bit more if needed. I had a customer who wanted more than 20 activity types to define their cost structure. But we identified the issue eventually at the time of POC based RevRec."

This means that it's not possible to create new activity types/materials because this generate an inconsistency in the further processes as revenue recognition and billing of the T&M porject. You must follow another solution to solve your requirement. You can use T001-T020 materials by changing description but not to create news.

former_member613804
Participant
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Hi simone.capellini

Thank you so much for this. Really helpful.

Answers (0)