| To use financial result |  |
| The financial results of the project costs, revenues and profits can be determined: During the execution of the project. When the project is completed. This allows you to view over/under billing, and over/under costs, as well as the revenue situation. Financial interim results The interim results are the financial results of a project that has not yet been completed (for example, the profit or loss postings at the end of a financial year). There are two interim results types: Interim Results Costs: transactions associated with costs. Interim Results Revenues: transactions associated with revenues. The interim results costs and the interim results revenues are linked to default entry accounts and default reverse entry accounts in Financials. The financial results types are used as default values for maintaining or generating interim results in the Financial Interim Result (tpppc2160s000) session or in the Generate Financial Interim Results (tpppc2260m000) session. Use the Generate Financial Interim Results (tpppc2260m000) session to generate the interim results. You can use the Financial Interim Result (tpppc2160s000) session to view and modify the interim results. You can select the revenue recognition and cost of goods sold methods to generate the financial interim results in the Generate Financial Interim Results (tpppc2260m000) session. You can set a limit on the revenue to be recognized. A maximum percentage is defined on the project and extension level. The default value is set to 100%. But the value can be overwritten. The percentage times the contract amount gives the maximum revenue that can be recognized (until the completion of the project). The revenue recognition limit is valid for all revenue recognition methods except the Completed Project method. Methods to Recognize Revenue: Completed Project Method Percentage Complete Method Milestone Method Reimbursement Contract Method Earned Revenue Factor Method Actual Revenue Method Methods to Determine COGS: Completed Project Method Profit Percentage method Reimbursement Contract Method Financial final results If a project is finished, you can use the Process Transactions (tpppc4802m000) session and select the Process Financial Results check box to generate the financial final result. Common changes the project status to Closed and sets the financial result status to Result Determined. If you close the project, the financial results are reversed. The final result is available in the Project Progress module. Related topics Revenue Recognition (RR) and Cost of Goods Sold (COGS) To use progress result |