Unit 9 Project Systems

Materials management postings

**in service processing ENTRY and ACCEPTANCE of services performed required instead of GR

The PS has the following activity categories

-Internal processing for capabilities staged in your own company -External processing for tasks assigned externally -Services for procuring external services -Cost activities for planning additional primary costs

Projects are tasks that have the following characteristics:

-complex, unique, high risk -precise targets that are agreed on between the contractor and sold-to-party -limited in duration; cost + capacity intensive -involve several departments -subject to specific quality requirements -strategic significance for the business carrying them out

OPERATIVE INDICATORS

ACCOUNT ASSIGNMENT ELEMENT collect cost PLANNING ELEMENT plan cost BILLING ELEMENT collect revenue

Employee time recording (CATS)

CATS= cross application time sheet integrated function for entering actual time data important in HR, PS, Plant maintenance (PM), Customer service, and CO

Phases in a project

Concept Rough-cut plan Detailed Planning Approval (budge) Execution Period-End Closing

Work breakdown structure FUNCTIONS

DATES BUDGET COMMITMENT PERIODIC PROCESSING PAYMENT DATA COST/REVENUES

Graphical displays of PPB

Dates Capacity overview cost/rev overview materials overview hierarchy graphic maintenance orders ntwrk structure graphic hierarchy graphic

Activities also form the basis for planning the following quantity structures

Dates(auto through scheduling) Costs (auto through costing) Resources(internal/external activities) Material requirements(using the assigned components)

In settlement, costs or revenues are transferred to the following departments

FI Asset accounting CO or PA (order, cost center, profitability segment) PS (wbs element, networks, activities)

Integration points

FI - EXP/REV CO- receivers/senders EAM -project can monitor/plan large maintenance SD - manufacturing activities during project (rev to WBS) PP- reqmt. of manufacturing activities HCM- CATS record time MM - reservations of inv. , procurement

Central element of the Project Planning Board

Gantt chart (where you process the project)

Project Structures

Hierarchy of Project parts Cross-departmental -SD -Purchasing -Profitability -Accounting -Production Complexity, Uniqueness Planning & Control -Resources -Budget -Dates -Costs or Revenues -Payments

Activities and Networks - Functions

Internal activity -work -dates, capacities -costs External Activity/Service -Costs, committments, payments Materials -purch parts/assemblies -costs, committments -dates, payments Periodic Processing -Process costs, OH, settlement Costs Activity -dates, costs, payments Milestones -billing datesbased on billing milestones (invoice/ down payment)

Financial postings(WBS TO Network/ Network activity)

MM- preq, po, gr, material withdrawal FI - gl posting CO - process costs, OH, interest calc., settlement, periodic transfer, internal activity allocation, PS- confirmation

Editing the Project using Project builder

Manual Hierarchy graphic Copy Incorporate

Stock items

Materials establish the link between PS, SD, MM, product planning and control (PP) By assigning materials to activities, you can plan the necessary material requirements for a project. A distinction is made b/w stock and non-stock

Budgeting Overview

Original budget Budget updates budget carryforward(non-exausted funds) budget releases availability control -against current budget -against budget releases

Nonstock item (consumed by project)

Preq- quotes- vendor selection-PO creation- monitoring-GR-IV PROCURED DIRECTLY BY NETWORK ACTIVITY @GR. not placed in stock, but posted to the activity not managed as project or SO stock

Project Planning Board (you can plan the following facets:)

Project Structures Dates Costs, Revenues Materials Dates Payments Resources based on interactive SAP Gantt chart (idea of project over a timeline)

data in PPB

Project definition, WBS elements, activities, relationships, milestones, docs, and PS texts Planning dates and resources (labor and external processing) cost planning, using activities

Period -end activities

Settlement Template allocation OH rates Projected interest calc. cost forecast progress analysis results analysis incoming orders

Planned Costs and Revenues

Structure oriented planning Detailed planning of primary costs and activity inputs Unit costing Easy cost planning WBS structure

Project Planning Board - Objects

WBS Elements Activities Relationships Materials Milestones Basic dates PS Texts Documents

chronological activity sequence

activities linked in a network

execution phase dates

actual dates

active availability control

alerts for certain occurences

Network structure graphic

all functions needed to create a network CYCLE ANALYSIS- closed sequence of relationships and activities

planning phase dates

basic dates

Cycle analysis

closed-cycle: start with one activity and ultimately end up at the same activity by way of the defined relationships if cyclical- will not be able to schedule the network detects any cyclical relationships and corrects them performed in network graphic

Network

connect activities as a web of relationships(dependencies) identify critical path

Detailed planning of primary costs and activity inputs

cost element based and period based

Unit costing

cost element based for each WBS element

Easy cost planning tool

cost element in a qty structure

Cost planning and budgeting process

cost planning is the basis for budget requests

Integration with MM and PP(STOCK ITEMS) fully integrated

create reservations indreqs trigger requirements planning MRP will determine pld. order or PReq Plannning @ BOM level convert to PO and/or Production order

Project builder main elements

current project selected object worklist and templates overviews for selected object detail screen for selected object

item category

determines if material is stock or non-stock

Structure-oriented

enter costs by WBS element and break down figures by fiscal year

Project builder

helps create/ manage project maintain any object in the PS except for assignment of PRTs

passive availability control

info available for analysis/monitoring

budget release function

makes funds available at various points within a fiscal year

Actual cost and actual revenues arise in a project or order as a result of the following situations:

material withdrawals and GRs vendor invoices customer billing internal activity allocations, transfers, cost distr. , process costs, OHs confirmation of network activities

Work breakdown structure

model of a project and shows the required project activities in a hierarchical form forms the control basis for planning costs, revenues, payments, scheduling, budgeting forms basis for all subsequent planning tasks in the project

CATS for external services

must be accepted before entered

Budget

must be released/approved for execution of project

Project system structuring objects

no org structure of its own; structuring is a first task -WBS elements (overall; model) -Activities (more detailed; process oriented) *one WBS can have many activities, but an activity can only have 1 WBS element

work center

place where an activity is carried out or work output is produced contain data for costing activities, scheduling and capacity data for planning

PPB perform the following tasks:

plan, check, change tasks plan,schedule, check resources determine and distribute work compare capacity calculate costs

Project system

provides the support you need during all project phases

Settlement rule

receiver distribution rule settlement parameters needed to carry out settlement

WBS structure (creating activities advantages)

resulting plan can be copied to new projects if parts of the project are shifted, cost planning is shifted automatically with the activities Planning using the network activities is done by the cost element and period

statistic indicator

specifies whether the WBS element is used for statistical purposes only or if it works with real costs

activities

task- oriented linked by relationships in a network

Activities in a project

task-oriented describe various steps and the work involved in them activities connected with a network

PPB

time oriented, planned costs , etc

control key

to determine whether externally processed or not

Resource Planning

use the activities on a network to plan resources required reliance on external vendors- purchasing reliance on work centers (internal)-

Projects assigned to

usually a controlling area (multiple ccodes)

Network costing

when you plan dates and resources in network activities, the system automatically determines the corresponding planned costs

PPB- Scheduling

you can carry out scheduling to automatically derive the activity dates an WBS elements dates network scheduling : earliest dates: fwd. sched. latest dates: bckwd. sched.