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What is diffrence between project cost plan, project revenue plan etc

Former Member
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Hello Gurus

I want to know what is project cost plan, project revenue plan and total cost commiment.

and also want to know what is diffrenece between them,

because some time there is budget amout is remaining but system does not provide me to make PO against that project.

s i would like to know what is the actual problem.

Please reply me.

Thanks & Regard,

Riten Patel

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Answers (3)

Answers (3)

Former Member
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Cost plan: is nothing but the plan of costs by forcasting the future expenses. based on that budget will sanctioned.

i the future you can compare how much you have planned and how much you actually incurred.

Revenue planning: It is nothing but the amount you are going to expect from the customer.

in the future you can compare how much you have revenue you have planned and how much revenue you have received and yet to receive.

Commitments: are nothing but the amount you going to block from the budget.

Ex: you have budget of 100 $, out of that you raised a purchase requisition for about 50$ then system will commit 50$ from the budget of 100$, so you are finally left with 50$ for other expenditure.

Purchase requisition & Purchase Order generates a commitmet, the same will be converted to actuallsonce you do Goods receipt.


Sudhir Reddy

Active Contributor
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Hi Riten,

Project cost plan:

Cost planning has different aims at different stages of the project:

1.At the concept and rough planning stage, cost planning acts as the base for an initial cost estimate.

2.At the approval stage, it forms the basis for the budget allocation.

3.During project execution, you use cost planning to monitor and control cost variances

Project Revenue plan:

Revenue planning deals with the revenues you expect to receive in connection with your project as it is executed.

When you create a sales order and reference it to a quotation, the sales order value then updates the plan value in revenue planning.

Total cost commitment:

Commitments in project is nothing but the cost of PR & PO's that has created against the project.

The system derives purchase order commitments from the order value. It is the value of goods ordered, but for which no actual costs have yet been incurred.



Former Member
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Kindly go through the help file in this, I hope it will give you clear picture cost/ revenue planning and commitment.


Avisek Bhardwaj