Actual costing for Professional Services Projects

[SAPSupport]

As per SAP best practice, standard cost rates will be defined and payroll cost will be flowing from employee cost center to WBS via time-sheet booking or other activity confirmations. With this methodology, residual cost (under/over absorption) will be left over in the cost center, as the rates are estimated. 

As most of the employees are tagged to the customer (Professional services) projects with a ratio of 1:1, Business wanted to post the actual payroll cost to the relevant WBS. They don't want to have the under/over absorption in the cost centers. Hence, please let us know the following options.

1. Similar to the Manufacturing industries' solution, do we have any apps to calculate the actual activity rate and perform the revaluation of customer projects in Professional services industry?
2. If the above functionality is not available, is it possible to post the payroll directly to the WBS from any external sources?

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[SAPSupport · Accepted solution]

1. There is no revaluation function for customer project.
2. Suggest you use app Reassign Costs and Revenues to re-allocate the costs to specific projects.