SAP Results Analysis calculates the costs and revenues attributable to a period for eligible orders and projects. At month-end, it helps finance teams determine what to recognize in the income statement and what to carry on the balance sheet as work in process (WIP) or other accruals, depending on the valuation method.
This guide covers classic SAP Results Analysis. It explains how production WIP differs from percentage-of-completion (POC) valuation on customer projects, and how the results flow into Financial Accounting (FI) through settlement.
In This Article
- What SAP Results Analysis Does
- Work in Process for Production Orders
- Percentage of Completion for Customer Projects
- Configuration and Month-End Settlement
- Glossary
- About the Author
What SAP Results Analysis Does
Costs and billings can occur in different periods. A production order may consume components and labor before finished goods are received. A customer project may incur costs before its next invoice. Results Analysis applies the configured valuation method to the costs, revenues, and other inputs on the object to determine the period-end values. Depending on the method, it can calculate WIP, cost of sales, revenue adjustments, or reserves.
The appropriate method depends on the business scenario and controlling object. Examples include manufacturing orders, projects, and eligible internal orders. Table 1 compares two common scenarios.
| Scenario | Typical Calculation | What to Review |
|---|---|---|
| Production order with full settlement | Eligible actual order debits less credits from goods receipts while production is in progress. | Order status, WIP-relevant costs, and goods receipts. |
| Customer project using cost-based POC | Actual costs divided by planned total costs to determine completion. Apply the percentage to planned revenue. | Accuracy of the cost and revenue plans, relevant actual costs, and revenue already posted. |
Work in Process for Production Orders
In classic Product Cost by Order with full settlement, an open order can carry WIP based on eligible actual costs. Suppose an order has $12,000 of eligible costs and $8,000 in goods receipt credits. Its WIP is $4,000 in this simplified example. Settlement transfers the calculated WIP to FI under the configured posting rules.
When the order is delivered or technically completed, previously posted WIP is reversed through period-end processing. The remaining order balance is then handled through variance calculation and settlement, as applicable. See how SAP determines product costs and settles production orders for the debit and credit flow.
Percentage of Completion for Customer Projects
In a cost-based POC method, actual costs are compared with planned total costs to estimate progress. If actual costs are $100,000 and planned total costs are $400,000, the project is 25% complete. With $500,000 of planned revenue, the method calculates $125,000 of cumulative revenue. If $90,000 of revenue has already been posted, the difference is $35,000 before considering prior adjustments. The configured method and posting rules determine how that difference is handled at settlement.
Configuration and Month-End Settlement
- Check the results analysis key and version. Verify that the applicable valuation method and status settings match the business scenario.
- Review the inputs. Check the object status, actual costs and revenues, and any plan values the method uses. Where applicable, review the line IDs that group costs and revenues for calculation.
- Run Results Analysis and review the calculation before settlement. Reconcile the proposed WIP, reserves, or revenue adjustments to the underlying costs and revenues. Then verify the settlement postings in FI against the configured posting rules.
See SAP Learning for Results Analysis configuration and project Results Analysis examples.
Glossary
- Line ID
- A grouping used in Results Analysis to classify costs or revenues for valuation and update.
- Percentage of Completion (POC)
- A measure of progress used by certain Results Analysis methods to determine attributable costs or revenues.
- Results Analysis Key
- A setting on the object that, together with the results analysis version and configuration, helps determine the valuation method.
- Settlement
- The process that transfers calculated values to FI or other configured receivers, as applicable.
- Work in Process (WIP)
- The value of unfinished work recognized at period-end under the configured valuation method.
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About the Author
Martin Munzel is an SAP Controlling consultant, author, and co-founder of Espresso Tutorials. He has more than 20 years of SAP experience.