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Question 24/84

Plan revenu = 3000 Plan costs = 2000 Actual revenue = 1200 Actual costs = 1000

Recent Comments (The most recent comments are at the top.)

Anandaroop - Jan 16, 2023

Sure, why not? The question is incomplete. But here it is for your understanding:-
You configured cost controlling by sales order with revenue-based percentage of completion for results analysis method. The details of a sales order line is as follows: Plan revenu = 3000; Plan costs = 2000; Actual revenue = 1200; Actual costs = 1000;
The calculation steps are as follows:

1. POC(Percentage Of Completion) = R(actual revenue) ÷ R(plan revenue)

2. R(CO-PA revenue) = R(actual revenue)

3. C(CO-PA cost) = POC(Percentage Of Completion) × C(plan cost)

4. If C(actual cost) > C(CO-PA cost), then WIP = C(actual cost) − C(CO-PA cost), else Reserve = C(CO-PA cost) − C(actual cost)

If actual costs are greater than plan cost then WIP will equal the actual cost minus the calculated cost, otherwise, the reserve will equal the calculated cost minus the actual cost.

Now, let’s apply the calculation to the SDI values. The results analysis calculation will involve the following steps:

1. 40%(Percentage Of Completion) = 1200(actual revenue) ÷ 3000(plan revenue)

2. 1200(CO-PA revenue) = 1200(actual revenue)

3. 800(CO-PA cost) = 40%(Percentage Of Completion) × 2000(plan cost)

4. If 1000(actual) > 800(CO-PA cost), then 200(WIP) = 1000(actual cost) − 800(CO-PA cost), else Reserve = C(CO-PA cost) − C(actual cost)
Regards
Anandaroop....

MD. MOFTY HOSSAIN - Jan 06, 2023

Can anyone show the calculation of this?

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