SAP WBS ,NWT

7/24/2019 SAP WBS ,NWT

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Scheduling can be used to derive dates for activities/WBS

elements. Networks are always scheduled forward and backwards.

The scheduling type determines the original direction in which scheduling

takes place. It can be carried out in two ways Top!"own and Bottom!#p

scenarios.

The dates schedule in WBS structure can be copied to the basic dates of the

WBS elements for the purpose of e$trapolating them up the pro%ect hierarchy.


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Scheduling uses the 'uantity structure of network activities to derive dates in an

automated way.

Single network schedules all activities of the network. If it is connected to other

networks by relationships( their dates are treated like constraints.

In overall network scheduling( the system schedules all networks connected byrelationships.

WBS scheduling schedules all activities which are assigned to selected

WBS elements.

Network can be scheduled

Individually )Network Scheduling*

+verall )Scheduling of +verall network*

WBS scheduling

The activity data( activity relationships and date restrictions form the basis for

determining the dates automatically.

In ,ro%ects with assigned networks( the dates of WBS -lements and ctivities

can be derived by scheduling. ere( WBS -lement transfers the date to higher

level


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elements and -$trapolate it.

In WBS with assigned networks( the basic dates for the WBS element can be

planned in order to determine that certain part of the pro%ect has to be

completed within a fi$ed period of time.


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The Internal processed activity( e$ternal processed activity and service activities are

differentiated by 1ontrol keys.

We can generate ,urchase re'uisition ),2* for e$ternally processed activities

from ,ro%ect System. The ,2 is converted to a ,urchase order ),+* in

purchasing. goods receipt and invoice receipt can then be posted for thepurchase order

We can assign a work center and planned work to an e$ternally processed activity.

This allows to carry out capacity planning for vendors

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5ou can use general costs activities to plan all other costs that cannot be mapped via

internally!processed activities or e$ternally!processed/service activities.

In the general costs activity( you can enter a description( the amount and currency( a cost

element( a duration and a distribution key for distributing costs.

The costs are distributed using the network duration for general costs activities.

"istribution is controlled by means of the distribution key for the activity. If no distribution

key is maintained( the costs are distributed evenly over the earliest dates in the activity.

5ou can create a unit cost plan for the general costs activity.

This means that detailed costing is possible even at an early stage of the pro%ect

)for e$ample( for sales pricing*.

The activities which cannot be tracked though internal/e$ternat activities/services can be

tracked through general cost activities to plan costs

-g travel e$pense for meeting.6enral cost activity is assigned to cost ob%ect

1osts are distributed as per scheduled duration which is controlled by distribution key

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.There are cases where distributionkey has not been maintained(in those cases

even distribution of cost is done based on the earliest dates in the activity

"etaled costing can be done like during sales pricing phase that is at beggining

phase of pro%ect


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5ou can create invoicing plans directly for network activities )e$ternal( service( or general

costs* or components procured e$ternally.

This means that it is possible to plan costs and outgoing payments on the basis of dates

entered in the invoicing plan. 1osts are not simply distributed( but are calculated precisely

at the times specified in the invoicing plan.

5ou can create an invoicing plan by copying a reference invoicing plan.

The reference invoicing plan fi$es cost and payment times relative to a start date.

lternatively( you can copy billing milestones as dates to the invoicing plan of the activity. If

you copy the milestones rather than creating them manually( they can be postponed

along with the dates in the invoicing plan if the activities are rescheduled.

5ou cannot create invoicing plans in combination with unit costings )for general costs

activities or material components*.

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+n the basis of days( periods or fiscal years one can plan payment flows i.e. revenues

and e$penditure.

In WBS elements( manual planning of revenues and e$penditure is by period. t

commitment item level ),ro%ect 1ash 9anagement master data* planning takes place.

The 'uantity structure in the network and the billing plans in the WBS or S" document

are valuated in the automatic planning of financial data.

utomatic planning will be done by day. ,lanned line items will be written.

Based on assignment to 6/: accounts commitment items will be determined. #nlike

revenue and costs calculation( payment date calculation takes account of the

customer and vendor payment terms respectively.

Note The credit side payment plan of the network is determined using theasynchronous network costing only.

The dates and the payment terms are used in the ,S billing plan for planning incoming

payments. Sales order items will also be used in assigning the billing plan data and

payment terms)of the dates or sales order item*.The delivery date including the

payment conditions is used if there is no billing plan for the sales order item.

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In the case of activities processed e$ternally and e$ternally procured components(

invoicing plan including payment conditions are used ; or( the delivery dates including

payment conditions are used where there is no invoicing plan

If an invoicing plan has been maintained( payment data is only planned for

general costs activities


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,lanned revenues and incoming payments is relevant in billing plan.

"ates for "own payments are relevant only for payments )not revenues*.

9ilestone billing dates appear as planned incoming payments and planned revenues. Two

things are important for dates and amounts i.e. payment terms and payment target

)e$ample payment & week after invoice issue( with 3< discount*

+nce the pro%ect is e$ecuted( invoice billing will be generated and appear in the pro%ect as

actual revenues and customer payment obligations. With respect to dawn payment date(

down payment re'uests will be generated by the billing program which are recorded inthe payment data for the pro%ect.

Billing plan can be created for a sales order( a sales order item or for a billing element in the

WBS.

,lanned costs and planned outgoing payments are relevant during the Invoicing plan.

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Invoicing planes can be created for e$ternally!processed activities( e$ternally!

procured material components( service activities and cost activities.


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"epending on the transaction( you can calculate costs for one network )e$ample network

maintenance* or a range of networks )e$ample all networks for selected WBS elements

in structure planning or the pro%ect planning board*.

5ou can calculate network costs asynchronously. The advantage of this is that you can select

and cost broader ranges )e$ample to =* and carry out costing in the background.

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1osting variant controls calculation of planned and actual cost. 1osting variant

is assigned to order type. Networks are of order category 38.

The valuation procedure is defined by valuation variant which is a component of

costing variant. Based on valuation variant prices are determined by the system to

value componenets material( activity type( processes( subcontracting and e$ternal

activities. >aluation variant searches for prices in se'uence from the price sources.

,rice entered first is selected first

9aterials,rice is selected either from purchasing date or material master record

ctivity type ? ,rocesses ,rice is selected either from activity based costing or

cost center accounting

-$ternallly processed activityprice is selected either from the activity or from

purchasing information record

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When customiAing the order value update( you stipulate( for each order category and

type( whether the order or network is appended ! that is( whether its planned costs are

added to the pro%ect cost plan for assigned WBS elements.

There are two tables for the order type )network type*. The first is defined per order type(

the second )parameters for network* per order type and plant.

third important table is the network profile( containing default values for the network and

its activities.

The costing variants for plan and actual costs are determined at network header level.

The costing sheet and overhead key are determined at activity level. They control processcost accounting or application of overhead. "epending on the creation process( these

keys are inherited from the network header or the assigned WBS element.

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The costing variant contains the basic control information needed to carry out

costing. The valuation variant contains all the information which controls the

valuation of

9aterial components

Internal activities

-$ternal activities

This information also

controls how

overheads areapplied.

>aluation can be

determined plant by plant.

The CBy periodC indicator enables you to calculate costs for internally!processed

activities period by period.

The costing type contains further detailed information for controlling costing.

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5ou can classify the resources in broadly 3 categories from the networks point of

view Internal and e$ternal activities.

Internally processed activities These activities / work are carried out by

machines and / or persons of own company. 5ou can schedule the activities as

per re'uirement( distribute the work among persons.

-$ternally processed activities these activities are e$ecuted / processed by other

companies. These are carried out by purchasing department. The service

activities are also procured e$ternally however different from e$ternally

processed activity that you need to define service specification and the limit for

the unplanned activities which is provided by the service provider.

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Business scenario

To e$ecute a pro%ect( materials are re'uired

which can be procured e$ternally )purchasing* or

manufactured in own company ),roduction*. These

materials are managed in pro%ect!specific stock.

s the pro%ect controller( you are interested in

The values in the pro%ect( at the different stages of purchasing or production

)pro%ect controlling*

Stocks of raw materials( semi!finished and finished products used for your pro%ect

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)stock controlling*

9aterials provide linkage between many other S, functional modules like

9aterials 9anagement ),urchasing and Inventory 9anagement*( Sales and

"istribution( plant maintenance and ,roduction ,lanning and 1ontrol.

The materials are assigned to activities which helps in material re'uirement and

planning in a pro%ect.

The product which is manufactured in your project is in turn made up ofa variety of material components.

The first step is to plan the procurement and consumption of the requiredcomponents in your project.

Projects are linked to Materials management, Sales and istri!ution and

Production Planning via materials.


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In order to plan the material re'uirements of a pro%ect( materials can be assigned to

activities. +n the basis of stock( the materials are classified as stock or non!stock items.

The item category stock items ):* are for such materials which are stored in stock e.g. pro%ect

stock( sales order stock or warehouse stock and reservations can be created for such

materials. Based on the 'uantity re'uired in the pro%ect( the re'uirement planning can be

initiated. The procurement element for e$ternal procurement is a purchase re'uisition and for

re'uirement planning is planned order.

For productions of assembled material( material B+9 is e$ploded and the

re'uirement planning is e$ecuted for all the materials mentioned in B+9.

Non!stock items )N* are for materials which are to be procured directly for the network which

is not using 92, )i.e. not procured via pro%ect stock( sales order stock or warehouse stock*.

For non!stock items( ,urchase re'uisitions are created which are passed on directly to

,urchasing.

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The item category Cstock itemC ):* is used for materials kept in stock. When you save

your data( the system creates a reservation for the re'uired material. purchase

re'uisition ! which is passed on to ,urchasing ! can also be created for components

procured e$ternally.

The main function of material re'uirements planning is to ensure material availability

)in other words( to procure the re'uired 'uantities in time ! both in!house and for sales

and distribution*. This includes monitoring stocks and( above all( creating procurement

proposals for purchasing and production.

Independent re'uirements ! that is( re'uirements for finished products( assemblies or raw

materials ! trigger re'uirements planning. In order to cover the re'uirements( order'uantities and dates have to be determined( and the corresponding procurement elements

scheduled. The procurement element for re'uirements planning is a planned order and(

for e$ternal procurement( a purchase re'uisition. Furthermore( the dependent

re'uirements for materials produced in!house )in other words( the 'uantity of components

re'uired to manufacture a finished product or assembly* are determined by e$ploding the

bill of material. ,lanned orders are created at each B+9 level to cover re'uirements

when a material shortage occurs.

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+nce 'uantities and dates have been planned in re'uirements planning( these

planned procurement elements are converted to Ce$actC procurement elements for

production( this is the production order and( for e$ternal procurement( the purchase

order. When the order or purchase order is being processed( the production order

is delivered or a goods receipt is posted to stock )plant stock or pro%ect/sales order

stock*.

The goods issue that takes place as a result of this activity reduces the stock

and posts actual costs to the CconsumingC network activity.

Item 1ategory : )stock item* is used for components kept in stock .

-nsuring material availability is the main function of 92, which includes monitoring

stocks and creating procurement proposals for purchasing and production .

2e'uirement for finished products( saleable assemblies and spare parts

trigger re'uirement planning.

+rder 'uantities and dates have to be determined in order to cover the

re'uirements .

For re'uirement planning the procurement element is the planned order and

for e$ternal procurement it is purchase re'uisition .

,lanned procurement elements are converted into e$act procurement elements

once the 'uantities and dates are planned.

It is ,roduction order for production and purchase order for e$ternal procurement.


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The item category Cnon!stock itemC )N* is used for components that are not procured

by way of warehouse stock or pro%ect/sales order stock( but are procured directly by a

network activity instead.

,urchase re'uisitions are created for these components. These re'uisitions are passed

on directly to ,urchasing. When the goods are received( they are not placed into stock(

but posted to the activity.

Non!stock items cannot be managed as pro%ect stock or sales order stock.

Non Stock Item )N* These are the items which are procured directly by network activity and not through

warehouse stock( pro%ect stock or sale order stock .

,urchase re'uisitions are created first and then passed directly to purchasing.

When the goods are received they are directly posted to activity .

Non stock items cannot be managed as pro%ect stock or sale order stock .

There are two procurement types for direct procurement with item category N

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,urchase 2e'uisition for the network

Third party re'uisition for the

network


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1hanges in network dates/'uantity will trigger workflow for a ,+ change

If changes are made in the network to dates or 'uantities for material

components or e$ternal activities for which ,+ has already been created .system

triggers a workflow automatically. The only prere'uisite is that this workflow has

been activated in the parameters for the network type table

The person responsible in purchasing will receive an information on the re'uired

changes.

If only ,2 is created( changes in the network to dates/'uantities will update the

change in ,2 automatically

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"or instance # $n this case the way in which the material can !e procureddepends on !oth item category and material attri!utes.

The material master stores the information of

the material attri!utes.-$t contains information like %

-&hether the material is purchased orinternally manufactured.

-&hether the requirements are individualor collective or !oth

-

&hether the material can !e procured inadvance.

The control data of the project definitiondetermines whether stocks can !e !uilt or not

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The account assignment category of the salesorder determines whether sales order can !e!uilt up

' setting within the ()M can !e specified todetermine whether the components can !eprocured independently of the material mastersettings.


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The components can !e assigned to theactivity with the help of the procurementindicator.

The Procurement indicator contains thedefault values for determining the stock andthe procurement type.

' procurement indicator can !e specified inthe network profile. This gets defaulted in thecomponent assignment.

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The B+9 transfer functionality in S, ,S helps you to assign the material from B+9 to

the network activities based on the reference point field which is assigned to the material

and network activities.

WBS B+9s can be assigned to ,ro%ect B+9s using the B+9 Transfer transaction .

The corresponding selection parameters must be chosen to perform the same.

dvantage of B+9 transfer functionality is that the changes in the B+9 during the course

of the pro%ect will change in the activities )you need to run B+9!transfer again every time

you make changes in B+9*.

5ou can also manually assign materials to network activities without reference point fields.

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*eference point % This is the logical link !etween a ()M component and anetwork activity. $t ensures that the automatic assignment of the materialcomponent happens correctly.

&hile the assignments !y themselves are project specific, they can !e madesimultaneously for a large num!er of networks in the project.

$ndividual components, individual ()M assem!lies or a multi level ()M can!e assigned.

These assignments can happen manually without reference points as well.

,rocedure For B+9 Transfer

"ield in the ()M and the network activity which needs to !e used asthe reference point needs to !e specified.

These fields must have the same structure in !oth the o!jects. "orinstance % +'*, eight digits .

Possi!le entries for the reference point can !e defined incustomi-ing.

*eference points in the ()M +omponents and the network activitiesmust !e defined.

The ()M PS $nterface must !e started after changing the ()M/

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()M +omponents are assigned to activities in this process.

Purchase requisitions and reservations are created for the assignedcomponents if *eservation0Purchase *eq. indicator is activated.


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material that you allocate to activities in a network can be kept in various stocks."epending on your pro%ect( you can access different types of stock for materials

planning

Sales order stock and pro%ect stock are important for controlling purposes )for monitoring

the stock value in a sales order or pro%ect* and from an 92, point of view )the stocks

are reserved for the sales order item or WBS elementG other stock elements cannot

access them*.

The various stock types are managed for each material component using the account

assignment category. 5ou define the account assignment category when you assign the

material to the network activity )popup in manual assignment( strategies in B+9!,S

interface and standard network*.

The possible account assignment categories depend on the assignment of the network

activity to a stock ob%ect )WBS element or sales order item*( on the item category for

the assignment )direct procurement for non!stock items* on the material master( which

can e$clude collective or specialist stock management.

s of 2elease @.( you can use 92, elements )grouping* to manage a %oint pro%ect

stock for an entire pro%ect or for several pro%ects )this is a rougher method than managing

stock per individual WBS element*.

5ou maintain the account assignment categories possible for network purchase

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re'uisitions in customiAing.


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Instead of managing the material either in a plant stock or for each individual WBS

element and having no control at all over procurement or being fully responsible we

can go for re'uirement grouping. Through re'uirement grouping we can determine

the degree of control ourselves.

,rere'uisites for using re'uirement grouping

>aluated group stock

6rouping WBS elements

92, 6roups that allow re'uirement grouping

ssigned components should have periodic lot siAes.

The most basic scenario involves grouping the re'uirement of all the WBS

elements in the pro%ect into one WBS element.

+r we can create pro%ects which are only meant for grouping re'uirement of otherpro%ects.

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>aluated pro%ect stock must be allowed in the pro%ect definition control data.

With the e$ception of automatic re'uirement grouping 92, element indicator

must be set for WBS elements.

92, groups involved in re'uirement grouping must be determined in customiAing

for the WBS.


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It is common in engineering pro%ects for critical components with long and unreliable

delivery times to be purchased at an early stage in the pro%ect much before the

pro%ect activities in which the components will be used are specified. dvance

procurement process is used in such situations.

dvance procurement can only be used when you are using sales order or pro%ect

stock .


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Order Categories and order types

"ocuments are used to enter business transactions in the 2/7 System. +rders are

one type of business transaction. +rders are determined by their order category.

The network is an order category. +rder types are prescribed by the system for the

relevant applications.

5ou can define your own order types within an order category. The order type

describes how the order is controlled.

1ustomiAing includes two tables( one for the order type and another for the

order type/plant combination.

The order category is used to control

&. Number assignment

3. "efault value settings

7. #ser!specific status management

@. #ser!specific field controlIn the case of networks( order types/plants can be header!assigned or activity!

assigned. Normally( activity!assigned networks are used( where costs are gathered

in each activity. eader!assigned networks are only significant for the assignment of

networks to sales orders )without WBS*.

Project Assignment of orders


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5ou can assign various S, orders to a pro%ectG e$amples include internal orders(

production orders( and plant maintenance orders. 5ou can then use the pro%ect

hierarchy reports to evaluate these assigned orders with the WBS element.

-ach order is a cost ob%ect with its own costing parameters such as planned costingvariant( actual costing variant( and overhead sheet. The planned costs of assigned

orders are used to determine the planned costs of the pro%ect.

5ou assign orders to the pro%ect either by assigning a WBS element to the order

header or by assigning the order to a network and activity as a subnetwork. If the

assignment is re'uired only for cost control and analysis( you need to assign order to

the relevant WBS element. If the assignment is re'uired both for scheduling and

cost control( you need to assign the order as a subnetwork. The WBS element is

derived from the network activity. Note that production orders cannot be assigned as

subnetworks.

"ocuments are used to enter business transactions in the 2/7

System. +rders are one type of business transaction.

+rders are determined by their order category.

The network is an order category. +rder types are prescribed by the system for the

relevant applications.

5ou can define your own order types within an order category. The order type

describes how the order is controlled.

1ustomiAing includes two tables( one for the order type and another for the

order type/plant combination.

The order type is used to control

Number assignment

"efault value settings

#ser!specific status management #ser!

specific field control

,lant and order type parameters are used to control

If the network is activity! or header!assigned

,lanned and actual costing variants

The settlement rule strategy


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5ou can use the CappendedC indicator to specify( per order category( whether an

order is appended ! that is( whether the planned values for the order are included

in the planned value of the corresponding WBS element

&. If the CappendedC indicator is set( the order planned value increases the

WBS element planned value. The information system shows the total

as the pro%ect plan. When cost planning is taken over as the budget(

the values from appended orders also contribute to the budget.

3. If the CappendedC indicator is not set( the order planned value is not

added to the WBS planned value. In budgeting( the plan total for such

orders must be added manually so that these orders can use funds

later.


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5ou can use the CappendedC indicator to specify( per order category( whether an

order is appended ! that is( whether the planned values for the order are included

in the planned value of the corresponding WBS element

+nce released( all orders are apportioned ! this means that their plan( commitment(

and actual values are funds assignments against the funds in the pro%ect. The

order value table contains an indicator which you can use to make orders

CapportionedC earlier( at the CcreatedC stage.

5ou can set appended and apportioned indicator based on the order category(order

type( and controlling area

n e$ception to apportionment at release is in the case of networks for preliminary

planning.In ,ro%ect System customiAing(you can specify network types to be used

for preliminary planning.,reliminary planning networks are never apportioned.Their

related plan values do no increase the assigned value for the relevant WBSelement

In the case of networks )order category 38*( you can use the network type

parameters to determine whether the network is

eader!assigned or activity!assigned ! that is( whether costs are managed in

the network activities or collected in the header


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preliminary planning network whose plan( commitment( and actual values

are not apportioned ! meaning that they do not appear as assigned values

in the pro%ect.


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Header-Assigned Networks

In a eader!assigned networks all the costs )activity and material* are assigned at

network header level

fter assignment of network header to a WBS element( ll costs are transferred to

WBS element. ssignment of activities to WBS elements is only to summariAe thedates

We you have to use header!assigned networks to assign networks to sales order in

case sales order are not assigned to pro%ects as no assignments can be made to a

sales order item in the network activity.

Activity-Assigned Networks

1osts are collected on activities in case activites are used as account assigned

ob%ects.,lant/network type parameters deines the condition if the network header

or network activities are to be used as cost ob%ects.

ctivity! assigned networks are usually used when activities are assigned to various

WBS elements.ere every activity in the network is an account assignment ob%ect.

Which implies we can analyAe planned costs( commitments and actual costs

for each activity.

The costs are aggregated and displayed for the WBS elements to which

the activities are assigned.


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ctivity account assignment is a special feature of networks. ll other order types are

header!assigned. ctivity account assignment is controlled via the appropriate

indicator in the table C,arameters for network typeC.

eader assigned networks should be used when networks are assigned to salesorders without WBS.eader assigned networks can also be used when the

enitre network is assigned to a single WBS element


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S" document item assignment is controlled via the account assignment category.

The account assignment category is controlled via S" re'uirements type

determination.

Important factors that affect account assignment are the strategy group( the 92,

type and item category group from the material master of the product as well as

the document type of the S" document.

The system defaults the item category when you create an order. 5ou can accept

the default or overwrite it. ,ermitted item categories are defined in 1ustomiAing.

The permitted planning strategies are assigned to the material using the planning

strategy group. This is necessary so that you can find the correct re'uirements type

in independent re'uirements management and sales order management.

The default re'uirements type is the main strategy in the planning strategy group.

If no planning strategy group is defined in the material master( the system uses the

item category group )sales and distribution screen in the material master* and( if

necessary( the 92, characteristic to search for the re'uirements type for the salesorder.


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The account assignment category determines the 1+ ob%ect to which document

'uantities and values are assigned. 5ou use it to determine the following

#sing the special stock indicator )SSI above*( that goods movements in :ogistics use

plant stock( sales order stock or pro%ect stock.

#sing the consumption posting indicator )1ons. above*( the 1+ ob%ect to which the

values of a material document are assigned.

Settings

F H 1ollective stock( consumption posting to the consumer )order( activity*

The account assignment category is important for procuring components directly.

- H uantities and values managed in the sales order item

This account assignment category is important for make!to!order production without

WBS.

" H uantities managed using sales order item( values managed in pro%ects

This account assignment category is important for non!valuated pro%ect

stock( with WBS and sales order item

H uantities and values managed in pro%ects

This account assignment category is important for pro%ect stock


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6 H ,lant stock( values managed using pro%ect

This account assignment category is important for sales order items sold

from plant stock( with

value posting to the pro%ect. It differs from account assignment category CFC in

the field control

of the account assignment block.


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ctivity!Based 1osting offers a facility for allocating and distributing the overhead to its cause.

ctivity!Based 1osting provides useful information on

+verheads reduction by process improvement

,rofitability increase by highlighting unprofitable products or customers

ctivity!Based 1osting is advantageous for having

J Transparent overheadsJ ,arallel 'uantity and value flows

J ,recise assignment of internal activities to consumer

K,eanut butter effectC can be avoided through even distribution of overheads among all

the cost drivers.

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In ctivity!Based 1osting( processes are the controlling ob%ects. ,rices can be either

maintained manually or using activity and cost input planning in the case of cost

centers and activity types. Through activity based costing( processes are debited to

cost ob%ects or profitability segments.


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Templates are created in L1ustomiAingM and determined by controlling area( costing sheet(overhead key and template environment )for networks ; 88@G for WBS ; 88* for the

function. In the ,ro%ect System( templates can be assigned to WBS elements( networks

)header assigned*( or network activities. ,rocess costs are allocated to cost ob%ects or

profitability segments by assigning a process template. ,rocess costs are calculated based

on the templates selected for the pro%ect.

fter template selection( the calculation program

determines the following

,rocesses in the template relevant for the

pro%ect

J uantity of each process consumed by

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pro%ect

1alculated value to be added to the

pro%ect at the start( end or continuously

The price for the process and the allocation cost element are determined by

entering one process per line in the process template. 9ulti!level processes can be

mapped by referencing another process template in the working template.

The 'uantity used by the cost ob%ect is determined using the cost driver. This enables

the allocation of the relevant values to all the levels in the process hierarchy as far

as cost ob%ects or profitability segments.

1ost drivers can originate from many different sources in the 2/7 System or e$ternal

systems. -$amples weight )material master*( number of components( activities of a

particular category( work center )network*( number of sales orders for market

segment ):IS* etc. The 'uantities determined by the cost driver are multiplied by the

price of the process. The resulting value is charged to the cost ob%ect )in the

e$ample( the WBS or network/activity*( and the process is credited.


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ctual prices for activity types and business processes are calculated in +verhead

cost controlling at the end of the period.

ctual prices H ctual costs / uantities consumed

The possibility of revaluation at actual prices and its specification for each

activity type are controlled in 1ustomiAing in the parameters for the actual

version depending on the fiscal year.

The difference between the actual price and the originally allocated price is

charged to the cost ob%ects.

2evaluation at actual prices for activities and business processes can be done

in the ,ro%ect System and in the 1ost +b%ect 1ontrolling.

2evaluation at actual prices using an activity type is illustrated in the e$ample given

in the slide

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+verheads calculation is used to allocate overhead costs to cost ob%ects such as activities

and WBS elements. 1alculations are done based on the 1osting sheet entered in

the cost ob%ect and the overhead key entered on the WBS element(network header or network activity. +verheads can be calculated for

planned( commitment and actual values. +verhead calculations are

done using the 'uantity based or percentage allocation rates.

The following postings get generated through overheads allocation

"ebits to cost ob%ect )WBS element( Network header orNetwork activity *

1redits to cost center ) overhead order or process *

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+verhead costs are updated using the secondary cost elements

in the costing sheet credit rows and these can be simulated also.


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1osting sheet is derived by means of the costing variant from the C,arameters for

Network TypeC table( in the case of networks. The costing sheet and the overhead key

can be changed in the network header.

The costing sheets to be used in the activities are made a default through this.

For WBS elements( the costing sheet is derived directly from the pro%ect profile. In

the case of -asy 1ost ,lanning and the unit costing for WBS elements( the cost

planning draws on a costing sheet for a costing variant which is assigned to the

pro%ect profile through the planning profile.

+verhead keys for activities are inherited from their respective WBS elements.

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+verheads are calculated using a costing sheet.

The overhead surcharge can either be a percentage if it is value driven or an absolute value

of measure if it is 'uantity driven. The overhead is calculated against a base which is defined

by the cost elements. 1ost elements or cost element areas are collected in base lines.

Factors such as 1ontrolling area( company code( plant( overhead group( network type( time

period and plan versus actual determine the overhead rate applied. +verhead key assigned

to the cost ob%ect decides the determination of overhead group in customiAing. Thus a single

costing sheet with fle$ible rates can be made use of different organiAational units or

individual activities.

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s of 2elease @.D1( the S, System offers an easy!to!use tool for planning costs in

WBS elements. The tool is called C-asy 1ost ,lanningC.

-asy 1ost ,lanning for pro%ects can be accessed from the ,ro%ect Builder. 5ou can choose

a WBS element from the structure tree and then you create costing items for the selected

WBS element.

In -asy 1ost ,lanning( cost planning is cost element based.

5ou can use planning templates to enter costing items in which characteristics are valued.

The e$ample above shows work in hours being valued at &88.

The characteristic values which are linked from the planning template are 'uantities(

values( or actions from the costing items. In the e$ample above( the link is to the'uantity for an internal activity.

When you accept them( the costing items appear in the structure tree beneath the

relevant WBS element.

s an easy way to create a pro%ect preliminary costing( -asy 1ost ,lanning can be very

useful.

The costs so planned are then broken down ! for e$ample( using a 'uantity structure of

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networks/activities.

-asy 1ost ,lanning can also be used to enter plan data for later pro%ect e$ecution.

aving done this( you can later use -$ecution Services to enter commitment and

actual data relating to the planned costs. #se customiAing to stipulate in which

plan version values planned in -asy 1ost ,lanning are stored.

s part of the network costing( the system automatically determines planned

costs when you plan dates and resources for the following ob%ects

a. For internally processed activities activity inputs

b. For e$ternally processed activities ? service activities ,rimary costs

c. For genreal costs activities primary costs

d. 9aterial componenets primeary costs.

5ou can use planning templates to create 'uantity structures for -asy 1ost

,lanning.5ou can enter 'uantities and prices in the template( or regulate activation using

formulas or conditions.

5ou can use characteristics assigned to the planning template as variables for the

formulas/conditions. The characteristics are valued by the user when the

planning templates are copied into -asy 1ost ,lanning.


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#nit costing is done to calculate cost plan per WBS element. ere we use

planned 'uantities instead of cost.

It is not period dependent

t cost element level( plan values are displayed

Input information related to sources of supply( 'uantities and prices mark the useof unit costing to generate cost plan per WBS element

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Structure Oriented Panning!

Simplest type of planning is structure based planning. ,lan values are displayed

in hierarchy

The total cost planned is aggregate

It is neither by cost element nor is period specific

>arious views are used to display the different values in structure!oriented

planning

,lanned total >iew!this shows total aggregate at superior WBS element ):evel

& WBS element*

The distributable or distributed view!This view is used to check distribution of

budget among child WBS element

1umulative or remainder view!This view is used to check distribution of budget

across years

+rder/network view!This displays the planned cost od appended orders/networksassigned to WBS element

Cost Element Planning/Activity Input Planning:

When more detailed information is re'uired( cost element planning is done. It

is independent of pro%ect scheduling

9anual reschedule of cost planning becomes mandatory if a pro%ect or

individual

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package schedule is changed

This planning is adopted if precise information is available as it becomes sure not

to reschedule/postpone the pro%ect


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The plan profile is used to control overall cost/revenue planning. It contains costing variants

for the unit costing or -asy 1ost ,lanning.

It also contains indicators for updating revenue plan values via customer 'uotations or sales

orders.

5ou assign the plan profile to the pro%ect by way of the pro%ect profile. 5ou can change it in the

pro%ect definition.

1osts and revenues can be planned in different 1+ plan versions.

5ou either specify the plan version during planning or( if you are using -asy 1ost ,lanning(

you assign it to the controlling area.

,lanning layouts are used to plan costs( revenues( payments( and statistical key figures.

5ou can use the 2eport ,ainter to create the layouts and can assign them to planner profiles.

#sers can choose planner profiles and assign them to the user master record.

,lanning profile #se transaction +,SB

The ,lanning profile contains the settings related to planning. It control overall

cost/revenue planning. ,lanning profile is assigned to pro%ect using pro%ect profile. 1osting

variant are

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relevant if we are using unit costing and easy cost planning

1+ plan version is re'uired to be specified if we are using easy cost planning.

,lanner profile and planning layouts are specific to use of detailing planning

using Kcost element/activity input


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,lanning profile is contains the settings for overall planning( detailed planning

and unit costing

"etails for each field can be checked using

F& Important field details are as

Total >alue "efines overall planning without any reference to fiscal year

nnual ,lanning "efines overall planning with reference to fiscal year

Bottom up ,lanning +verall planning values are e$trapolated after saving

-$change rate type "etermines which e$change rate is to be used for currency

conversion of overall values

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Transaction +OOT to edit costing and valuation variant

1osting variant is mostly used for unit costing (easy cost planning and also used for

costing networks. The field costing type determines for which WBS element

)costing ob%ect* costing is done

>aluation variant determines the prices and rates. In the above mentioned slide(system will first check for K,lanned price & if it fails( system will check for Kstandard

price and again if it fails it will check for Kmoving average price from material

master. If system now fails( it will trigger an error message during cost determination

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"nternay-processed activities!

If no distribution key or work center is maintained in the activity( the costs are distributed

evenly over the earliest dates in the activity. >aluation is at the rate in the valuation variant.

"epending on the strategy being used( the system can determine the most current date.

valuation is determined by the rate maintained in the valuation variant. Based on the

strategy adopted( system determines the latest date. If no work center/distribution key is

maintained( the system distributes the cost evenly over the earliest dates.

Costs activity!

1ase &Invoice plan maintainedthe values in periods are as per the values mentioned

in invoicing plan

1ase 3Invoicing plan not maintained and distribution key maintainedThe activity value

is

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distributed to the periods based on the distribution key maintained in the activity

1ase 7Invoicing plan not maintained and distribution key not maintainedThe

costs are distributed evenly over the earliest dates in the activity

If an invoicing plan has been maintained( the values in the periods are set

as specified in the invoicing plan.

+therwise( the activity value is distributed to the periods using the distribution key in

the activity. If no distribution key is maintained in the activity( the costs are distributed

evenly over the earliest dates in the activity.

Service activities or e#ternay-processed activities!

1ase &Invoice plan maintainedthe values in periods are as per the

values mentioned in invoicing plan

1ase 3Invoicing plan not maintainedThe activity value is set in the period of the

latest activity start date.lso the system determines the price from the purchasing info

record or the activity value.

Invoicing plan has priority for the values

If an invoicing plan has been maintained( the values in the periods are set

as specified in the invoicing plan.

+therwise( the activity value is set in the period of the latest activity start

date.

The invoicing plan has priority for the values. If no invoicing plan has been

maintained( the system determines the price from the purchasing info record or

the activity value.

$ateria components!

1ase &Invoice plan maintainedthe periods and (in some cases(values are

taken from invoicing plan

1ase 3Invoicing plan not maintainedThe system determines the price from the

purchasing info record or the price is taken from material master as per

valuation variant.ere material re'uirement date determines the period

If an invoicing plan has been maintained( the periods and( in some cases( the

values are taken from the invoicing plan. If no invoicing plan has been maintained(

the values are taken from the purchasing info record or the price is taken from the


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material master per the valuation variant. In this case( the period is that from

the material re'uirements date.


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The customer accepts the 'uotation. sales order is created in the system( where

appropriate using the 'uotation as a template. The activities listed in the 'uotation

are entered in the sales order as sales order items.

The items are assigned to the pro%ect. They are used for revenue planning and for

posting revenues to the pro%ect by means of milestone billing.

Two companies are responsible for e$ecuting the pro%ect ! I"-S 6 and I"-S #O.

I"-S #O creates a sales order for I"-S 6 and assigns the document item to the

billing element T!&88PP.&.3.

:ater on( I"-S #O bills its services to I"-S 6 on a resource!related basis.

billing re'uest is created in the system via resource!related billing. This is billed and

results in revenues for I"-S #O.

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In S, where pro%ect is a controlling ob%ect

Sales order created and after structuring of pro%ect sales order will account assigned toWBS. Then revenue planned in sales order.

+nce Work completed in pro%ect( actual cost captured in WBS and Final product will

be delivered to 1lient.

Billing will be completed and actual revenue generated. ctual 2evenue will

be transferred to WBS.

While 2esult analysis performed for pro%ect the ctual 2evenue and 1ost will settled

to the profitability segment.

Sae document structureJ Sales "ocument type represents the type of business transaction and functions and

the flow of document with in sale order. ,rocessing.

J Item 1ategories are assigned to sales document category. While creation of Sales order

it will default the item category but user can change it as per re'uirement.

J Schedule line category is assigned to Item 1ategory. While creation of document

system will default the scheduled line category but it can changed according to

re'uirement.

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"tem Category

J Item Category is determine by Sales Document type and thematerials Items category group in a sales order.

J Item Category controls function for Sales Order like Item Type,Pricing, illing Plan, resource related or deli!ery related.

J It controls if pricing is rele!ance for billing, rele!ance for Deli!erySchedule "ine Item, and contains Incompletion "og and Partner te#t.


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)&*2epresents a process of make!to!order production without a work breakdown structure.

In this case( the sales order item is the contolling instrument. ccount assignment category

- specifies that the sales order item forms a separate 1+ ob%ect.

1osts and revenues of the sales order item are usually settled to the profitability segment.

)3*#sing assembly processing( you can generate a network when you create the sales order.

When you save your data( the system creates a WBS and assigns the sales order item to a

WBS element in this WBS. In this case( the sales order depicts the sales view( the pro%ect is

the controlling instrument( and logistical processing is represented by the network.

ccount assignment categories " or )1ons. H , in each case* specify that revenues

are assigned to the billing WBS element of the pro%ect.)7*s an alternative to assembly processing( you can assign a sales order item to a WBS

element in a pro%ect. 1ontrolling takes place in the pro%ect. 5ou can assign orders or

documents to the pro%ect. >alue assignment to the pro%ect is controlled via account

assignment categories 6( " and . These differ from each other in the way that they

manage 'uantities.

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9ethods for plan revenue in a pro%ect are

a. 9anual revenue planning this can be based on structure or revenue element

where the later is a cost element and period based.

b. ,S billing plan this is cost element and period based planning.

c. S" document this is part of integration with S" module where sales order itemor 'uotation items are used as revenue planning. This kind of planning is cost

element and period based.

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2evenues can be planned in pro%ects using the following methods

9anual planning in billing elements in the pro%ect structure.

This type of planning can follow the same procedure as cost planning( or can be by

revenue element.

Sales orders )all S" documents assigned*.

Sales order items are assigned to WBS elements. In 1ustomiAing( you can stipulate( for a

combination of sales document category )'uotation( order( and so on*( sales

document type( controlling area( and system status( whether the billing data )for

e$ample( in a billing plan* from a sales order should update the revenue plan for an

assigned WBS element. The dates and planned revenues concerned originate eitherfrom the billing plan for the sales order items or )if there is no billing plan* from the

net value and apportionment data for the item. The revenue element originates from

6/: account determination in S".

Billing plan in pro%ect billing elements.

The revenue element is defined in 1ustomiAing.

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There are different ways of creating billing plans

9anually

By copying a reference billing plan

In S" and ,S( reference billing plans can be

called upon automatically

By copying billing milestones from work

breakdown structures or networks

By copying billing milestones automatically from

the network in assembly processing

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In the S" document( you can define a detailed billing plan with a number of billing dates

instead of %ust a single billing date. billing plan is a schedule containing individual billing

data for a particular sales document.

9ilestone billing is widely used in pro%ects )for e$ample( construction pro%ects*.

If you use milestone billing( the total value to be billed is apportioned to the individual dates

in the billing plan per defined rules.

Billing plan dates can be blocked for billing

5ou can set billing blocks manually or remove them by activating billing milestones.

s of 2elease @.8( billing plans can also be entered for billing elements in pro%ects. Such

billing plans can( if re'uired( be copied to the sales order later )make sure you delete

any e$isting billing plan in the billing elementG if you do not( the planned revenues will be

determined via the ,S billing plan and not the S" billing plan*.

billing plan can contain down payment dates. These dates affect payment( but not

revenue.

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The term CVersion" is used in the pro%ect system in different conte$ts. "ifferent

types of versions include simulation versions( pro%ect versions and 1+ planning

versions are available in S, ,ro%ect System which are discussed below.

,ro%ect versions( are snapshots of a pro%ect at a specific point in time( and are

used for documenting the progress of a pro%ect over time. Both 'uantities and

values are stored in versions and it can be created either manually( or

automatically when a status changes. In the case of status change( the pro%ect

profile contains a reference to a version profile which specifies the name of

the pro%ect version to be created when a particular user or system status is

set.

Simulation versions In the ,ro%ect System( these are versions that you can

change. 5ou might( for e$ample( create simulation versions in the following

situations

In the 'uotation phase generally speaking( at this stage there is not yet

an operative pro%ect.

To draw up alternative planning scenarios for e$isting operative pro%ects

or parts of these.

1+ plan versions are used to plan revenues and costs. 5ou can copy values

from one version to another. 5ou can change planned values manually in every

version and cost values are retained.

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Simulation versions are used to draw up alternative Cwhat ifQC planning

scenarios. They are created manually( can be changed( and( if necessary(

deleted again which is unlike released operative WBSs with activities.

Simulation versions are useful during the 'uotation phase of a pro%ect

and possible to plan several simulation versions.

5ou can create simulation versions even at the time of e$ecution of pro%ect(

where you can copy from operative to simulation versions( compare( analyAe

and work with other versions and transfer them back to the operative

pro%ect.

When an operative pro%ect is copied to a simulation version or vice versa( a

log file is created which contains the ob%ects that were transferred and any

error messages that were issued in the process.

Simulation versions can be created either for an entire WBS( or for

sub! hierarchies of a WBS.

Simulation versions are edited in the pro%ect planning board or in pro%ectplanning board from S, 2/7 @.D1 release.

The system performs the test run while transfer to check if the operative

or simulation version can be transferred.

9ultiple Simulation version can be created( compared and evaluated.

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Simulation customiAation consists of two steps

&. >ersion keys one should work with permissible version keys since these cannot

be deleted once simulations has been created.

3. Simulation profile This determines which all ob%ects will be copied while creating

simulations )in addition to the structure information* from simulation tooperative )and vice versa*. If there are no simulation profile( all the te$ts will be

copied. The simulation profile will be defaulted in the pro%ect due to assignment

in pro%ect profile.

Rust like pro%ect version( simulation versions can be compared with each other in

information system( whereas the cost element report does not support the

simulation versions. #nlike operative pro%ects( simulation versions cannot be

changed in structure info system.

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When you transfer data from operative pro%ects to simulation versions )or

vice versa*( the following ob%ects are copied

Work breakdown structure

Network with activities( activity elements( relationships( and

subnetworks 9ilestones

9aterials for the activity

"ocuments( ,S te$ts and long te$ts )depending on the simulation profile

used*

1apacity re'uirements

Invoicing plan for the network( and billing plan for the WBS element

)as of 2elease @.*

The following ob%ects are not copied

+ther orders )e.g. no production orders*

,roduction resources/tools

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,ro%ect versions enable you to record a snapshot of a pro%ect at a specific

moment in time ! this can be used for future comparison with the

operative pro%ect.

5ou can create a pro%ect version automatically )i.e. triggered by a system or user

status*.

5ou can also create a pro%ect version manually

While changing the WBS

While changing the network

In the Structure/"ates information system for one or more pro%ects

"ata transfer when >ersion profile settings are used while using these transactions

&. Status dependent pro%ect versions.

3. T1 network maintenance 1N33 or WBS element maintenance 1R83

"ata transfer which is Independent of version profile and dependent on

database profile

7. T1 1NE& and 1NE3

@. Structure information system

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The version profile is maintained in the ,S customiAation and assigned to

,ro%ect profile or network profile.


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5ou use a version profile to define two different kinds of information. First( you

specify which version is created automatically when a specific system status or

user status is set. Second( you specify which data is to be written to the

versions that are created automatically.

5ou need to define a version profile( if you wish to have versions created

automatically( or if you wish to generate versions directly when editing the WBS

or networks.

5ou do not need to define a version profile( if you wish to generate versions

manually from the Structure/"ates information system.

The version profile is entered in the pro%ect profile and network profile.

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,ro%ect planning board is a tool in S, ,S which helps and enable you to

process / edit the entire pro%ect structure which are WBS element( activities(

relationships( milestones( material components( ,S te$ts( documents and

assigned ob%ects to them.

It is similar to 6antt chart based on interactive S, environment.

This comprises of hierarchy structure of your pro%ect and the corresponding

date situation.

5ou can custom made the display in pro%ect planning board to suite your

re'uirement.

,ro%ect planning board can also be useful for planning dates and resources

i.e. work( e$ternal processing( for planning costs using activities.

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,ro%ect planning board profile contains default values for the appearance

of planning board.

The settings in this pro%ect planning board profile is valid for both( simulation

versions and operative pro%ects.

The graphical display can be changed and adapt as per user needs inthe planning board and customiAation using pro%ect planning board

assistant.

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,ro%ect planning board is a graphical interface based on 6antt chart which can

be used for creating and maintaining data like pro%ect definition( WBS element(

activities( relationships( milestones( documents and ,S te$ts.

#seful for Scheduling and monitoring.

5ou can view date view( and other overviews of pro%ect at the bottom of 6anttchart like capacity overview.

5ou can view logs( hierarchal graphic of WBS element and Networks and

network activities.

This is the only transaction where we can change simulation versions for

releases earlier than S, [email protected]( i.e. create of change of WBS elements

in simulation version based on the user specific options.

The entire period in the pro%ect planning board screen is called as -valuation

period which consists of ,re!evaluation period( ,lanning period and ,ost!

evaluation period. These are defined by time settings and determined by 7

profiles which are created in customiAing and assigned to pro%ect planning boardprofile.

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ssembly processing will be helpful while one is planning and producing or

servicing same product for several times with similar constellations. Which means

the basic structure will be same while data like duration( dates( 'uantities etc. will be

changing. In assembling processing( a network and WBS element ? ,ro%ect )if

re'uired* is automatically created based on the customiAation( while a sales

document is created and saved. The pro%ect number is derived from Salesdocument and this process generates assignment between sales document ?

pro%ect. This incurs that the same information will be shared by sales and pro%ect

team. If the data is changed in ,ro%ect will update Sales document )and vice versa*

which helps in delays and disagreement between sales and pro%ect department.

,rocess flow

If a sales order is created for a material which has strategy group for assembly

processing has been assigned( the assembly processing will start.

The 92, processing is omitted in the assembly processing and creates a operativeorder )network in case of ,S* directly from sales order.

ssembly processing is carried out statically in ,S which means only one network

for one sales document item.

Based on the customer re'uirements date( backward scheduling is carried out and

availability check is done for re'uired material components. Which enables to

inform customer about feasibility of re'uired date or else system will propose new

date.

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lso( the calculated cost will be transferred from network the sales order.

While saving the sales document( WBS element structure ? pro%ect definition will

be created which is identified by sales order number.

Since the sales document and the pro%ect is directly connected( any changes

one ob%ect will update / reflect in other automatically.


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The re'uirement class which is assigned with the sales order while creating it will

start assembly processing( one assembly order automatically created by system

and start assembly processing in the back ground. By this method 92, is ignored

and an operational order created directly from Sales +rder.

Below is the list of ssembly order which can be created!

Network( ,roduction +rder( planned order( ,lant maintenance or Service order and

,rocess +rder.

ssembly ,rocessing contains all the date of Sales order and assembly order. So

if there is any change done later to any document it will reflects in both document.

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Documents

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