Usage based billing_ Apportionment of revenue to the employees

[sai_sandeep]

Hi all,

We want to use usage based billing for one of our requirements. Service units drives the billing. There will be time entered by employee who is working on this project like travel, AMC, maintenance etc. There could be multiple employees working on this project. We want to track the revenue to the employee and post it to respective employee profit centers.

Reason: Revenue generated by an employee is a key KPI.

We have seen cost postings are happening when time is entered, but WIP or billed revenue is not apportioned to employee or posted to employee profit center. 

Any help on this, much appreciated.

Regards

Sai

[Chris1973]

Hello @sai_sandeep 

Thank you for your question

Your understanding of cost postings is correct. This is not a configuration error but a standard public cloud design. You cannot automatically configure public cloud to post multiple revenue lines per employee for a single usage-based billing item. Which would lead to a contradiction of the standard revenue recognition design.

Given the public cloud limitation, for you to achieve your Revenue by employee as a KPI, I recommend:

Is for you to use analytics and not FI posting to calculate revenue per employee.:

• In your time entry, make sure you can identify which employee worked on which order or project. This seems to be the case already today since you see cost by employee.
• Ensure you add employee as a characteristic in Margin Analysis, or you make use of a Custom Analytical Query.
  • The Custom Analytical Query helps you read revenue and WIP at contract/Order/Project level and
  • relates it back to employees through the recorded time.
• You may also consider creating an SAC Fiori KPI for your Revenue by employee.
  • This will require you to build a query that calculates employee share of revenue based on the employees’ hours or cost proportions
  • Which you can then expose as a KPI in your Analytics Story or Fiori tiles.

This approach basically ensures you avoid fine-grained profit centers for every person.

In summary, the best practice is for you to:

• Keep profit centers at organisation or project level and,
• Use analytics with employee as characteristic to calculate.

If you absolutely need revenue on employee profit centers, you can on approximate this through the periodic CO allocation from project profit center to employee profit centers. I do not recommend this because of its complexity.

This Blog provides some good insights: Project Billing for Customer Projects in SAP S/4HANA Cloud Public Edition

Check out this similar question: https://community.sap.com/t5/enterprise-resource-planning-q-a/usage-based-billing/qaq-p/12341024

Best regards

Chris