202
CAPABILITY TOPICExplore the building blocks that make PS work

PS 202 · FINANCE

How are project cost, revenue, period end, and settlement controlled?

Collect costs and revenues temporarily, apply period-end rules, settle to permitted receivers, and preserve financial evidence.

READ THE CAPABILITY

Treat project finance as a controlled collection and settlement story

Project financial control begins with collecting cost and revenue on the right WBS or execution object. Period-end processing then applies approved rules for accruals, results analysis, overhead, settlement, or revenue recognition according to the project type.

The project balance is not automatically the final financial result. Reviewers need to distinguish source postings, temporary collection, eligible receiver, period treatment, and residual balance before declaring the project financially complete.

WORKING FLOW

From business decision to controlled evidence

Follow the capability through the records and decisions that make the result explainable.

01STEP 01

Collect accountable value

Post supplier, material, internal, overhead, revenue, and adjustment evidence to the approved project boundary.

02STEP 02

Apply period controls

Run the relevant planning, accrual, results-analysis, or period-end treatment and explain the movement.

03STEP 03

Settle to valid receivers

Use settlement rules and source structures to transfer eligible cost or revenue to the permitted receiver.

04STEP 04

Reconcile and close

Resolve residuals, reversals, late postings, rejected receivers, and the relationship between operational and financial completion.

DIAGNOSTIC EVIDENCE

What should be traceable?

When the result looks wrong, start with the last trusted record and follow the owning boundary.

SOURCE

Origin document, cost or revenue type, WBS or activity, posting period, and accounting assignment.

PERIOD

Plan, actual, accrual, results-analysis or recognition basis, version, status, and period-end decision.

RESULT

Settlement rule, receiver, posting document, residual balance, reversal history, and approved close evidence.

SCENARIO

A customer project has delivered work but retains unbilled cost

The team separates physical completion from financial completion, identifies the applicable revenue or results-analysis treatment, and reconciles cost, revenue, billing, and settlement evidence before closing the period.

  • Business rule and accountable owner are explicit
  • SAP object and source evidence remain connected
  • Exception or outcome is reconciled before closure

CORE MODEL

Three questions to resolve

A sound design makes ownership, control, and evidence explicit before configuration.

CONTINUE THE PATHContinue to PS 303

See how this capability changes across valid integration models.

Open patterns