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.