Internal margin between 2 departments in same company code(Professional Services)

[former_member599308]

Hello Everyone,

We have a scenario in our Professional Services company.

Local business unit(BU) and Global BU are 2 different department in same company code.

If  Consultant "X"  who works at Local BU,  do time recording for a Customer Project, then cost rate is 500 Eur. This is general cost rate for Local BU.

But if Same consultant "X"  who works at Local BU,  do time recording for Global BU's Customer project, then cost rate will be 800 Eur. 

In this case, if consultant "X" works for Global BU , internal margin for Local BU will be  800-500 = 300  eur. 

Then Global BU bill these time to the customer with 1000 Eur. In this case;

Margin for Global BU = 1000 - 800 = 200 Eur

Margin for Local BU =   800 - 500 = 300 Eur

Total Margin=                300 + 200 = 500 

How can we handle this scenario, considering internal margin report, activity cost rates maintenance, origin profit center etc.? We would like to reach these margin info for local BU and Global BU as well.

Thank you

Resul

[former_member599308 · Accepted solution]

Hi Everyone,

We have solved this scenario on reporting side.

• We have created a custom field on Journal entry as number format
• When users do time recording system picks normal rate but if the project belongs to specific area , then cost +margin rate (800 in our example) directly booked our custom field.
• At the end when time recording has been done normal rate flows as it is , special rate also is being populated on same Journal entry with custom field.
• On the Journal entry BAdi , some enhancement need to be done in order to calculate new rate.(800)
• Personel number etc can be used , it depends to cost rates structure.
• For some parameters we dont have as import parameter on Badi , in these cases some additional works need to be done. For example "Partner cost center" we dont have as import parameter , it makes it difficult to reach rate if your rate structure uses "partner cost center" as reference dimension.

Thank you

Kind Regards,

Resul

[Feras_Al-Basha]

Hi Resil,

I suggest you review the best practice blog on intercompany cost allocations and assess the fit of 16T/4AN to your scenario.

https://blogs.sap.com/2020/06/01/intercompany-cost-allocations-in-s-4hana-cloud/

Since both of your departments belong to the same company code, i'm not sure how this translates into true intra/inter company. Perhaps you may consider creating additional service organizations.

Hope this helps.

Feras

[former_member599308]

Hi ferasbasha3 ,

We have also Intercompany scenario if the source provided by another group company code.

But firstly we are trying to achieve first scenario.

We have created service organization for Global BU.

Our idea is, when Consultant in Local BU do time recording for Global BU's customer Project(500 eur), at the same time additional time recording will be done by enhancement(300 eur) if the conditions are matched. We create additional activity type like "Margin" and with using "Partner Profit Center" provide some information to us. We have some doubts about this solution.

Second Idea(Image);

We have also thought CO reposting to Internal Local Project and use these project to reach margin info (first 500, then credit -800 = -300 balance in local project).

I just wonder, is ther any other valuable approach in forum?

I have read stefan.walz 's excellent Blogpost several times. Bu this case little bit detail topic , I guess.

Thank you

Kind Regards,

Resul

[Feras_Al-Basha]

Thanks for sharing Resul. Your first option seems interesting. I cannot comment on the feasibility though and encourage you to test this.

[former_member599308]

Hi Dear Members,

Is there any comment? We have some solutions but we would like to hear other good points as well.

Thank you

Resul Simsek

[former_member132363]

Here are some SAP resources you may review based on your topic "recording | rate | general cost rate | professional services company | professional services | global bu | local | tcode | customer project"

Activity Types and Service Materials for Project Services

Aug 18, 2019 ... Activity Types are used to define a global catalogue for your internally ... The Service Cost Level can be maintained in the employee master data record in S4H cloud ... Activity Types = Catalogue of activities performed by the company ( e.g. Consulting). ... App: Maintain Cost Rates ? Professional Services.

https://blogs.sap.com/?p=570

How to Manage Authorizations by via Business Roles for Customer ...

Apr 6, 2020 ... Image/data in this Blog is from SAP internal systems, sample data, or demo systems. ... Expertise Services Community; Add New ... in the area of Customer and Supplier Business Partner Master Data in S/4HANA Cloud so I ... The best place to start from a general IAM point of view would be the SAP Activate?...

https://blogs.sap.com/?p=709

General Overview of SAP Fiori Apps Related To Purchase ...

Jun 1, 2020 ... Lines of Business ... Support Employee Self Service functionality; Support Requisition for ... Assign source of supply e.g. Vendor, Info Record, Source List or ... 4) SAP Fiori App ? Manage Purchase Requisitions Professional (App ID ... as Gross Price or Net price in Purchase order or option of no selection?...

https://blogs.sap.com/?p=319