plm200 en col62 fv part a4 (2)

PLM200Project Management

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Participant HandbookCourse Version: 2006 Q2Course Duration: 3 Day(s)Material Number: 50077984

An SAP course - use it to learn, reference it for work

Copyright

Copyright © 2006 SAP AG. All rights reserved.

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THESE MATERIALS ARE PROVIDED BY SAP ON AN "AS IS" BASIS, AND SAP EXPRESSLYDISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR APPLIED, INCLUDINGWITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR APARTICULAR PURPOSE, WITH RESPECT TO THESE MATERIALS AND THE SERVICE,INFORMATION, TEXT, GRAPHICS, LINKS, OR ANY OTHER MATERIALS AND PRODUCTSCONTAINED HEREIN. IN NO EVENT SHALL SAP BE LIABLE FOR ANY DIRECT,INDIRECT, SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANYKIND WHATSOEVER, INCLUDING WITHOUT LIMITATION LOST REVENUES OR LOSTPROFITS, WHICH MAY RESULT FROM THE USE OF THESE MATERIALS OR INCLUDEDSOFTWARE COMPONENTS.

About This HandbookThis handbook is intended to complement the instructor-led presentation of thiscourse, and serve as a source of reference. It is not suitable for self-study.

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2006/Q2 © 2006 SAP AG. All rights reserved. iii

About This Handbook PLM200

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iv © 2006 SAP AG. All rights reserved. 2006/Q2

ContentsCourse Overview ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Course Goals .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiCourse Objectives ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii

Unit 1: Introduction..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Introduction ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Unit 2: Project Structures ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Work Breakdown Structure .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Activities and Networks ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Milestones, Documents, and Tools ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Unit 3: Reporting..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Reporting... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Unit 4: Planning ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Date Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89Resource Planning... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102Material Planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114Cost and Revenue Planning... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124

Unit 5: Budget .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149Budget .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150

Unit 6: Execution..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163Actual Dates and Confirmations .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165Assigning Documents, Procurement Processes, and ClaimManagement .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181

Milestone Billing and PS Cash Management... . . . . . . . . . . . . . . . . . .199

Unit 7: Period-End Closing ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211Period-End Closing and Settlement .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .212

2006/Q2 © 2006 SAP AG. All rights reserved. v

Contents PLM200

Appendix 1: cProjects ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233

Appendix 2: SAP xApp Resource and PortfolioManagement ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235

Appendix 3: Versions ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237

Appendix 4: Subnetworks ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239

Appendix 5: Network Configuration ..... . . . . . . . . . . . . . . . . . . . . . . . . 241

Appendix 6: Using Milestones ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243

Appendix 7: Documents@web ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245

Appendix 8: Project Portals .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247

Appendix 9: Progress Analysis ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251

Appendix 10: Cross-Project Evaluations ..... . . . . . . . . . . . . . . . . . . 255

Appendix 11: Evaluations with SAP Business InformationWarehouse ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261

Appendix 12: Scheduling Scenarios ..... . . . . . . . . . . . . . . . . . . . . . . . 263

Appendix 13: Service ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265

Appendix 14: OCI Interface ... .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267

Appendix 15: Integrating iPPE with Project System ...... . . . 269

Appendix 16: In-House Production Process .... . . . . . . . . . . . . . . . 271

Appendix 17: Progress Tracking ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273

Appendix 18: Delivery from Projects ..... . . . . . . . . . . . . . . . . . . . . . . . 275

Appendix 19: Workflows and Mails in Project System ...... 277

Appendix 20: Assembly Processing ... .. . . . . . . . . . . . . . . . . . . . . . . . . 279

Appendix 21: Archiving ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281

Glossary..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283

Index ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287

vi © 2006 SAP AG. All rights reserved. 2006/Q2

Course OverviewSAP Project System supports comprehensive functions for planning, controlling,and organizing all the activities carried out during the course of a project. It helpsyou manage your project structures, dates, costs, and resources throughout theentire project lifecycle. Course PLM200 provides you with an overview of thefunctions in SAP Project System.

Target AudienceThis course is intended for the following audiences:

� Project managers� Project team members� Consultants

Course PrerequisitesRequired Knowledge

� Knowledge of navigating SAP systems� Basic knowledge of project management

Recommended Knowledge

� Completion of another SAP course, such as AC040 on business processes inManagement Accounting, or SCM500 on external procurement processes

Course GoalsThis course will prepare you to:

� Discuss the basic functions of SAP Project System for structuring, planning,executing, and monitoring projects

Course ObjectivesAfter completing this course, you will be able to:

� Use work breakdown structures, activities, and networks to structure projects� Discuss aspects of planning dates, resources, materials, costs, and revenues� Name the functions used for budgeting� Explain aspects and processes used for executing projects� Explain various period-end closing activities in Project Management

2006/Q2 © 2006 SAP AG. All rights reserved. vii

Course Overview PLM200

� Use reporting options for monitoring project data

SAP Software Component InformationThe information in this course pertains to the following SAP Software Componentsand releases: ECC 6.0

viii © 2006 SAP AG. All rights reserved. 2006/Q2

Unit 1Introduction

Unit OverviewThis unit describes the general characteristics and structures of projects. Itintroduces two business examples that will be used throughout the course toexplain and demonstrate the functions of SAP Project System (SAP PS).

Unit ObjectivesAfter completing this unit, you will be able to:

� Explain the characteristics of projects� Differentiate between the main tasks of SAP PS, cProjects, and SAP xApp

Resource and Portfolio Management (SAP xRPM)� Name the two structures used in SAP PS� Describe the project examples used in this course

Unit ContentsLesson: Introduction .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Exercise 1: Preparations (to be carried out by instructor). . . . . . . . . . . . . . 11

2006/Q2 © 2006 SAP AG. All rights reserved. 1

Unit 1: Introduction PLM200

Lesson: Introduction

Lesson OverviewThis lesson gives you a brief overview of the characteristics and phases typicalto a project, and of the SAP tools that are available specially for program andproject management. It introduces networks and work breakdown structures,which are used in SAP Project System (SAP PS) for mapping projects. Both ofthese structures, as well as basic functions and processes of SAP PS, are describedin this course using two sample projects. The business examples for these twoprojects are introduced in this lesson.

Lesson ObjectivesAfter completing this lesson, you will be able to:

� Explain the characteristics of projects� Differentiate between the main tasks of SAP PS, cProjects, and SAP xApp


Business ExampleTwo typical projects are used in this course to illustrate the functions of SAPPS. �Elevator E-99##� is a typical investment project and is an example of aproject that is mapped using only a work breakdown structure. �Turbine SystemT-200##� is a sales project and is used to explain activities and networks. Moreinformation on these two example projects is provided in this lesson.

IntroductionBoth large-scale projects, such as constructing a factory, and smaller projects, suchas organizing a trade fair, require the numerous activities involved to be planned,controlled and monitored precisely, systematically, and efficiently. Professionalproject management is becoming an increasingly important factor for boostingthe competitive strength of companies, and not just for those whose success isbased on project-oriented business processes. A �project� is an undertaking that acompany carries out, characterized by the uniqueness of its general conditions andconstraints. These conditions include the objectives of the project, the time framefor executing it, as well as financial and capacity-related restrictions. Projectsusually involve cross-departmental and highly complex business processes, theresults of which must often yield an extremely high level of quality. Projects areoften cost-intensive, time-consuming, and of strategic importance; as a result, theycan also represent a risk for the company.

2 © 2006 SAP AG. All rights reserved. 2006/Q2

PLM200 Lesson: Introduction

Figure 1: Project Characteristics

The term �project� is not specific to a particular industry sector and can involvevarious aspects such as research and development projects, investment measures,make-to-order production, and more extensive maintenance tasks. Projectsare normally given an appropriate structure to allow dates, resources, costs,budgets and payments to be planned, controlled, and monitored transparently.Hierarchies are often used for evaluating aggregated data, allocating budgets,and defining responsibilities. Project-specific organizational forms are usuallycreated for projects that are integrated in an enterprise's business processes. Theseorganizational forms are in a position central to the user departments involved sothat all the tasks that occur when the project is executed can be properly controlled.

SAP Project SystemSAP PS is a project management tool that assists you throughout all the phases ofyour project. Through the high level of integration between SAP PS and otherSAP functions, such as Logistics, Accounting, and Human Resources, SAP PSensures that the necessary business processes are handled quickly and efficiently.SAP PS provides structures that allow you to map projects flexibly and with theappropriate structures. Using suitable tools and reports in SAP PS, you can planand monitor dates, costs, revenues, budgets, resources, materials, and so on, forthese structures.

SAP PS is a component of both mySAP Enterprise Resource Planning (mySAPERP) and mySAP Product Lifecycle Management (mySAP PLM).



In addition to SAP PS, additional SAP functions for achieving efficient programand project management at a company are provided with Collaboration Projects(cProjects) and SAP xApp Resource and Portfolio Management (SAP xRPM).

cProjectscan be used independently of SAP PS, but also in combination withSAP PS, for efficient project management. cProjects is a web-based, flexible,and easy-to-learn project management tool tailored to suit the requirements ofdevelopment, consulting, and IT projects. In addition to the functions offeredby cProjects for structuring, planning, and implementing projects, differentintegration scenarios such as Collaboration Folders (cFolders) or SAP systemscan also be used.

SAP xRPMis used for the strategic management of entire project portfolios. Tothis end, data from different project management tools, for example MicrosoftProject (Client and Server), cProjects, or SAP PS can be consolidated withcontrolling data from mySAP ERP Financials and monitored uniformly withspecial dashboards and SAP Business Information Warehouse analysis functions inan Enterprise Portal. The merging of data from different project management toolsin SAP xRPM facilitates uniform, system-wide resource planning of all projects.

Figure 2: Program Management and Project Management

The two structures provided by SAP PS for mapping projects are work breakdownstructures and networks. You use a work breakdown structure to organize a projectin the form of a hierarchy, and so map the structure of the project. Networks, onthe other hand, are used to represent the individual project activities together with



their temporal and logical relationships, in other words, the flow of the project.You can map a project using just one work breakdown structure or one network.However, you can also illustrate a project using a work breakdown structure andone or more networks in order to use the characteristics of both structures together.Work breakdown structures consist of work breakdown structure elements (WBSelements) that are arranged at various levels to produce a hierarchical model ofthe project activities to be carried out. Each individual WBS element can act as acontrolling object in which you can plan and monitor costs, revenues, payments,budgets, and dates. A network represents the flow of a project. The individualtasks in the project are mapped as activities in a network. The temporal andlogical dependencies between the various activities can be represented as links,also known as relationships. Activities form the operative basis for planningand controlling dates, costs, and resources (personnel, machinery, materials).When activities are assigned to WBS elements, the dates and costs defined inthe individual activities are totaled up (aggregated) at the WBS level, and canbe evaluated. Activity funds already assigned are checked against the budgetsof the WBS elements.

Figure 3: Structures

Two example projects explain how you can use the two structures, workbreakdown structure and network, when you are managing projects with SAP PS.The various functions they support are also described.

Business ExamplesThe project with the ID E-99## (## stands for the number of the group a courseparticipant belongs to) is an example of an investment or cost project that canbe mapped with just a work breakdown structure, that is, without networks or



activities. You use the work breakdown structure in this business example to planand monitor the project for constructing an elevator in your company. Cost-relatedaspects are particularly important while the project is being executed.

Figure 4: Investment Project E-99##

The following steps are carried out in this course for project E-99##:

1. Create a suitable work breakdown structure using the Project Builder2. Plan basic dates manually for WBS elements using the project planning board3. Plan costs manually for the WBS elements using Easy Cost Planning4. Budget WBS elements5. Enter actual dates during the project execution phase6. Assign various documents for WBS elements using Execution Services for

updating commitment costs and actual costs7. Calculate overhead costs and carry out settlement to assets under construction

in Asset Accounting using the Schedule Manager

Project Builder, project planning board, Easy Cost Planning, Execution Services,and Schedule Manager are tools in the SAP system that are used here to performthe various steps. In addition to these tools, this course introduces you to a rangeof reports and information systems that you can use to evaluate the project dataduring the various project phases.

Project T-200## is used in this course as an example of a sales project that ismapped in the SAP system with a work breakdown structure and a network. Thestarting point for creating and executing the project in this business example isa customer inquiry and, later on, a sales order for constructing a turbine system.In addition to Controlling-related aspects for developing and constructing theturbine system, it is also important to consider a number of logistical requirements



(on-time material procurement, availability of capacity). The network acts as aquantity structure for planning dates, costs, resources, and material requirementsautomatically.

Figure 5: Sales Project T-200##



The following steps are carried out in this course for project T-200##:

1. Create a customer inquiry in Sales and Distribution2. Create a project (work breakdown structure and network) using standard

structures3. Plan dates using scheduling4. Plan resources

� Plan capacity requirements� Distribute work among the workforce� Plan the external procurement of services

5. Plan materials by transferring bills of material6. Plan costs using network costing7. Create sales pricing data

� Create a quotation based on a project cost plan� Plan revenues for the project

8. Create a sales order with a billing plan in Sales and Distribution9. Enter confirmations (in particular, using the cross-application time sheet:

CATS)10. Purchase materials and services11. Document variances using claims12. Post revenues using milestone billing13. Calculate overhead costs, carry out a results analysis and settle the results

analysis values to the profitability segment

In this business example too, you will use suitable reports to track planned andactual data (dates, resources, costs, revenues, and payments) that is written tothe network activities. By assigning the activities to WBS elements, you canaggregate activity data at work breakdown structure level and evaluate it.

In simplified terms, a project can generally be divided into the following phases:



Figure 6: Phases in a Project

A high degree of precision is required when planning and coordinating largeand complex projects. When planning the flow of a project, you will scheduledeadlines and dates, make resources available, and assign funds. SAP PS givesyou the support you need throughout all phases of the project.



Exercise 1: Preparations (to be carried outby instructor)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Make the system settings required for the course (instructor only)

Business ExampleOriginal IDES data is used for structuring, planning and executing the exampleprojects. You also need to implement a number of additional individual settings inthe SAP system.

Task 1: Preparations (to be carried out by instructor)Check the parameters in the user master data and the settings in the SAP systemthat are required for performing the demonstrations and exercises.

1. Check the user master records for the course participants. They shouldcontain suitable parameters and fixed values.

2. In Customizing for Project System, set the Adjust Basic Dates indicator inthe 130000000001 IDES Scheduling Forward profile for WBS scheduling.

3. PS Cash Management must be activated in company code 1000 to ensurethat the payment data is updated. Check this setting in Customizing forProject System.

4. To carry out period-end closing using the Schedule Manager, you have tomaintain a prefix number for the SAP system (transaction OOW4).

Check workflow Customizing using transaction SWU3, and if necessaryperform automatic workflow Customizing.

In the TVARV table, you have to enter suitable values for parametersPS_PERIOD and PS_YEAR (transaction SM31). Make the appropriatesettings in the system.

Continued on next page



Task 2: Language Settings (to be carried out byinstructor; only for courses not held in German)German is set as the original language for master data in the IDES systems. Forcourses held in other languages, the master data short texts need to be switched tothose languages.

Hint: The example shows the texts being converted to English (EN). Nochanges need to be made for courses held in German.

1. Set the short texts for standard networks and standard projects to EN usingtransaction YILA. Use text pools ZT-TRAIN-PS-01, ZT-TRAIN-PS-02and ZT-TRAINING-PS-03.

2. Set the language for vendor 1000 to the required language (in our example,English). Use transaction XK02 to change the vendor data.

3. Set the language for customer 1600 to the required language (in our example,English). Use transaction XD02 to change the customer data.



Solution 1: Preparations (to be carried outby instructor)Task 1: Preparations (to be carried out by instructor)Check the parameters in the user master data and the settings in the SAP systemthat are required for performing the demonstrations and exercises.

1. Check the user master records for the course participants. They shouldcontain suitable parameters and fixed values.

a) Check the parameters for the participants using transaction SU01. Thefollowing parameters should be maintained:

Parameter Value TextBUK 1000 Company CodeCAC 1000 Controlling AreaPDB 130000000000 Profile for logical

database PSJPFL YIDES_130000 Profile for project

information systemWRK 1300 Plant

b) Set suitable fixed values for:

� Decimal places� Date format� Time zone

2. In Customizing for Project System, set the Adjust Basic Dates indicator inthe 130000000001 IDES Scheduling Forward profile for WBS scheduling.

a) In Customizing for Project System, choose SAP CustomizingImplementation Guide→ Project System→ Dates→ Date Planningin WBS→ Define Parameters for WBS Scheduling . Then display thedetails of the 130000000001 IDES Scheduling Forward profile. Set theAdjust Basic Dates indicator and save your changes.




3. PS Cash Management must be activated in company code 1000 to ensurethat the payment data is updated. Check this setting in Customizing forProject System.

a) In Customizing for Project System, choose SAP CustomizingImplementation Guide→ Project System→ Payments→ ActivateProject Cash Management in Company Code. The following settingis required:

CoCd FMA Actv.1000 1000 x

4. To carry out period-end closing using the Schedule Manager, you have tomaintain a prefix number for the SAP system (transaction OOW4).

Check workflow Customizing using transaction SWU3, and if necessaryperform automatic workflow Customizing.

In the TVARV table, you have to enter suitable values for parametersPS_PERIOD and PS_YEAR (transaction SM31). Make the appropriatesettings in the system.

a) Call up transaction OOW4. Check whether the table contains thetraining system and your client. If necessary, enter a new line with anynumber you like (###, for example 865) and your system and clientnumber. Save the data as a local object.

b) Check the standard settings for the workflow. To do so, call uptransaction SWU3. You may need to perform automatic Customizing.

c) Call up transaction SM31 for maintaining tables. Enter table TVARVon the selection screen. Call up the screen for maintaining the data.Change the parameter values in accordance with the following tableand save your changes.

Name ValuePS_PERIOD Current month

PS_YEAR Current year




Task 2: Language Settings (to be carried out byinstructor; only for courses not held in German)German is set as the original language for master data in the IDES systems. Forcourses held in other languages, the master data short texts need to be switched tothose languages.

Hint: The example shows the texts being converted to English (EN). Nochanges need to be made for courses held in German.

1. Set the short texts for standard networks and standard projects to EN usingtransaction YILA. Use text pools ZT-TRAIN-PS-01, ZT-TRAIN-PS-02and ZT-TRAINING-PS-03.

a) Call up transaction YILA. If necessary, confirm the dialog box withthe message on the language switch. Enter the following data in thelower section of the screen (Selection: Textpool):

Field ValueTarget Language EN

Text Pool ZT-TRAIN-PS-01

Select Update Short Texts.

Update the texts in text pools ZT-TRAIN-PS-02 andZT-TRAINING-PS-03 in the same way.

2. Set the language for vendor 1000 to the required language (in our example,English). Use transaction XK02 to change the vendor data.

a) Call up transaction XK02. Enter the following data on the initial screen:

Field ValueVendor 1000

Company Code 1000

Purchasing Organization 1000

Address x

Confirm your entries with Enter. In the Language field, chooseEnglish and save your changes.




3. Set the language for customer 1600 to the required language (in our example,English). Use transaction XD02 to change the customer data.

a) Call up transaction XD02. Enter the following data on the initial screen:

Field ValueCustomer 1600

Company Code 1000

Sales organization 1000

Distribution channel 10

Division 00

Confirm your entries with Enter. On the Address tab page, go to theLanguage field, choose English, and save your changes.



Lesson Summary

You should now be able to:� Explain the characteristics of projects� Differentiate between the main tasks of SAP PS, cProjects, and SAP xApp



Unit Summary PLM200

Unit SummaryYou should now be able to:� Explain the characteristics of projects� Differentiate between the main tasks of SAP PS, cProjects, and SAP xApp


Related Information

� For more information about mySAP PLM, see the SAP Service Marketplaceat service.sap.com/plm.

� For information about mySAP ERP, see the SAP Service Marketplace atservice.sap.com/erp.


Unit 2Project Structures

Unit OverviewThe first step in planning a project involves creating the structural framework forall the necessary activities and processes and representing their actual structuresand flows. SAP Project System provides two basic elements for mapping thestructures of projects, namely work breakdown structures and networks. Thesestructures form the basis for all further steps involved in planning and executingthe project. This unit describes how projects are structured using work breakdownstructures and networks.


� Describe the tasks and structure of work breakdown structures� Use the Project Builder and hierarchy graphic to maintain work breakdown

structures� Describe the tasks and structure of networks� Use the Project Builder and network graphic to maintain networks� Assign PS texts, documents, and milestones� Use the mass change function� Name the functions of Open PS

Unit ContentsLesson: Work Breakdown Structure... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Exercise 2: Work Breakdown Structure .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Lesson: Activities and Networks .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Exercise 3: Activities and Networks ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Lesson: Milestones, Documents, and Tools.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Exercise 4: Milestones, Documents, and Mass Change ... . . . . . . . . . . . . 55


Unit 2: Project Structures PLM200

Lesson: Work Breakdown Structure

Lesson OverviewProject E-99## is used as an example in this lesson to describe the structure andtasks of work breakdown structures. It also introduces you to the Project Builder,a tool that is ideally suited to structuring projects.


� Describe the tasks and structure of work breakdown structures� Use the Project Builder and hierarchy graphic to maintain work breakdown

structures

Business ExampleYou need a suitable work breakdown structure in order to plan and then executeinvestment project �Elevator E-99##� in your company. You create this workbreakdown structure using the Project Builder.

Structure and Function of Work Breakdown StructuresA work breakdown structure is a model of a project, and shows the projectactivities to be carried out as a hierarchical structure. The various work packagesin the project are described in individual work breakdown structure elements(WBS elements). You can further divide these elements at various levels until youreach the level of detail you require. The WBS elements are the objects that areactually used for planning and updating actual data. The focus here is on planning,controlling, and analyzing costs, basic dates, and budgets. Because the workbreakdown structure is structured hierarchically, the data can be summarized anddisplayed for the corresponding higher-level WBS elements. When you createa work breakdown structure, you also have to create a project definition. Theproject definition is a framework for all the objects created within a project. Theproject definition contains data that affects the entire project (for example, startand finish dates, organizational data, and planning parameters). It contains defaultvalues that can be passed on to the WBS elements. The controlling area, whichyou specify when you create a project definition, is unique for the entire project.You specify it once you have created the project. You define organizational unitssuch as company code, business area, profit center, and plant for each WBSelement. You can use the Project Builder or the project planning board to createand change the project definition and work breakdown structure. You can editprojects in tabular or graphical mode.


PLM200 Lesson: Work Breakdown Structure

Figure 7: Structure of Project E-99##

The work breakdown structure (WBS) forms the basis for all subsequent planningtasks in the project. The focus here is on planning, analyzing, describing,controlling, and monitoring costs, basic dates, and the budget. Costs, dates, andpayments are often planned using activities that are assigned to WBS elements.The �Tasks of the Work Breakdown Structure� figure shows the various functionsthat a work breakdown structure can perform during a project.



Figure 8: Tasks of the Work Breakdown Structure

Creating a Work Breakdown StructureThere are various ways of creating and editing a work breakdown structure. TheProject Builder is a clearly-structured tool in SAP Project System (SAP PS) that isextremely user-friendly and allows projects to be edited quickly and efficiently.You can use the Project Builder to maintain any object in SAP PS, except for theassignment of production resources and tools (PRT). Context-sensitive menus,Drag&Drop, and the option of defining your own worklist and set of templateshelp you edit your projects more easily. The Project Builder consists of a windowdivided into three areas: the structure overview is in the top left of the window, theworklist in the bottom left, and on the right is an area of displaying and editingdata. The structure contains the selected project data of the current project withits hierarchical relationships. You use the worklist to store frequently-usedprojects, networks, and WBS elements on a user-specific basis. The worklistalways displays a list of the last five projects edited. The templates are used as aset of proposals while a project is being edited from which you can incorporatenew elements in the project and integrate copy templates. The work area displaysa detail view of the selected object in the structure and allows you to accessthe overviews of lower-level objects directly. You use the work area to edit theindividual project elements. You can navigate between the various views (detailviews and overviews), graphics, and project planning board quickly and efficientlyin the Project Builder in order to maintain the structures.



Figure 9: Project Builder

You use operative indicators to define the characteristics of a WBS element, andto specify what tasks the WBS element will assume during project execution:

� WBS elements for which you want to plan costs are flagged as planningelements.

� WBS elements to which you want to post actual costs are flagged as accountassignment elements.

� WBS elements where you want to plan or post revenues are flagged asbilling elements.

Each WBS element is assigned its own company code. Since different companycodes can be assigned to the various WBS elements in a project, this means that itis possible to process projects across companies. You can assign profit centers,business areas, persons responsible, partners (internal and external), and costcenters responsible for the project to WBS elements. These assignments are usedmainly for reporting purposes (see unit entitled �Reporting�). For example, thisdata allows you to analyze a large number of projects together by business areaand person responsible using project summarization. You can also analyze theproject key figures of several projects in your cost center hierarchy or profit centerhierarchy. When documents are assigned, the business area and profit center arederived from the corresponding WBS element. This information can be used laterfor reporting by business area or in Profit Center Accounting. You can generatecost-center-based settlement rules for costs projects. You can specify in the systemthat an e-mail should be sent to the person responsible for the project entered in aWBS element if the budget is exceeded. You can also use SAP Partner Processing



to assign customers, vendors, personnel numbers, system users, work centers,shipping points, HR organizational units, and other objects to WBS elements.When you do so, the system conducts checks against existing SAP master data.

Figure 10: Operative Indicators and Organizational Data

The �Maintenance Options� diagram shows different ways of creating andextending work breakdown structures. You can use the Project Builder to createand change WBS elements. You can do this on detail screens or in the list ofWBS elements. You can use the hierarchy graphic to change WBS elements (bydouble-clicking them). You can also create new WBS elements, and insert thesein the hierarchy (connect mode). In addition to maintaining projects manually inthe Project Builder or using the hierarchy graphic (1, 2), you can also use existingproject structures or standard projects as templates to copy from. When you createa new WBS, you can use an existing WBS, a section of the project hierarchy,or a standard WBS as a template to copy from. You can also incorporate WBSelements from other projects or from a standard WBS in an existing WBS (3, 4).Other transactions are available in addition to the Project Builder, for example theproject planning board for creating and editing a WBS.



Figure 11: Maintenance Options

You can analyze and edit the structure of the WBS in the hierarchy graphic. Forexample, you can create new WBS elements or cut and paste subtrees from thehierarchy. You can call up the hierarchy graphic in various functions of ProjectSystem (for example, in the Project Builder or project planning board, in costplanning, scheduling, budget management, or in the information system).

Figure 12: Hierarchy Graphic



Exercise 2: Work Breakdown Structure

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create and edit work breakdown structures using the Project Builder

Business ExampleYou are planning the construction of an elevator for your company. In order toplan and then execute and monitor this investment project, you create a suitablework breakdown structure using the Project Builder.

Hint: In the following exercises, ## indicates your group number (## =01, 02, and so on).

Task: Project E-99##Create a project E-99## in the Project Builder. Get to know the various ways ofcreating and editing work breakdown structures in the Project Builder.

1. In the Project System menu, start the Project Builder transaction and set thenecessary options so that you can see all 99 hierarchy levels of a project.

Create a project with the identification E-99## and description ElevatorGr## in the Project Builder. Use Investment Projects as the project profile.In the basic data for the project definition, enter the number ## for theperson responsible.

Use your right mouse button in the structure header to change the order inwhich Identification and Name are displayed. Save your project.

2. Open project E-99## Elevator Gr## in the Project Builder. So far, you haveonly created a project definition. In the WBS Element Overview, create WBSelements with the identifications (and descriptions) E-99## (ElevatorGr##), E-99##-1 (Engineering), E-99##-1-1 (ElectricalEngineering) and E-99##-1-2 (Mechanical Engineering). Toavoid making any mistakes when entering your data, use the @ entry aid. Theaccount assignment element operative indicator (Acct column) is to be set forall WBS elements. Flag WBS elements E-99## and E-99##-1 as planningelements as well (Plan column).

3. Create further WBS elements for your project E-99## in the Project Builderusing a template to copy from. In this way, you can put the experience gainedfrom past projects to use in your current project. In the structure underneathWBS element E-99##, insert further WBS elements. Use the contextmenu in the structure (right-hand mouse button) to do this and not the




template area. Use the subtree E-1001-2 of a standard work breakdownstructure to copy from. WBS element E-1001-2 (root) is also to be insertedunderneathWBS element E-99## and to the right of WBS elements thathave already been assigned. Make sure that you do not insert any activities.

Next derive the hierarchical structure of your work breakdown structure fromthe numbers of the WBS elements.

Finally, adjust the data of the new WBS elements to the requirements ofyour current project. To do this, assign the person responsible ##, projecttype Capital Investment, and investment profile 1000 to all newWBS elements.

4. Use Drag&Drop to create a new WBS element E-99##-3 with the nameAssembly underneath WBS element E-99## Elevator Gr##. Set theoperative indicators of the new WBS element in such a way that you can plancosts and post them to this WBS element later on.

Analyze the hierarchical structure and operative indicators of the WBSelements in your project in the hierarchy graphic. If necessary, set theoperative indicators in such a way that only the WBS elements at levels1 and 2 allow costs to be planned.

In the hierarchy graphic, create a new WBS element with the identificationE-99##-4 and the name Acceptance. Assign this WBS elementunderneath WBS element E-99## in connect mode. In the hierarchy graphic,set the Planning Element operative indicator for the new WBS element.

Then save your project.

5. Optional: Answer the following questions on project E-99##:

Which controlling area is project E-99## assigned to?

How many levels make up the work breakdown structure of project E-99##?

For which WBS elements can you plan revenues?



Solution 2: Work Breakdown StructureTask: Project E-99##Create a project E-99## in the Project Builder. Get to know the various ways ofcreating and editing work breakdown structures in the Project Builder.

1. In the Project System menu, start the Project Builder transaction and set thenecessary options so that you can see all 99 hierarchy levels of a project.

Create a project with the identification E-99## and description ElevatorGr## in the Project Builder. Use Investment Projects as the project profile.In the basic data for the project definition, enter the number ## for theperson responsible.




Use your right mouse button in the structure header to change the order inwhich Identification and Name are displayed. Save your project.

a) In the SAP menu, go to the Project System folder and open the ProjectBuilder. Choose SAP Menu→ Accounting→ Project System→Project→ Project Builder.

If you are opening the Project Builder for the first time, two dialogboxes appear. Set the Skip this in future indicator in the first dialog boxand confirm this with Enter. In the next dialog box for user-specificoptions, set the number of hierarchy levels displayed for a project to 99and confirm this with Enter.

Hint: You can change the user-specific options in the ProjectBuilder whenever you need to. To do so, choose Settings→Options in the Project Builder menu bar.

b) To create a project, choose Create and Project. Enter the followingdata for the project definition:

Field Name ValuesProject Definition E-99##

Text (without caption) Elevator Gr##

Project Profile Investment Projects

Confirm your entries with Enter. The project definition is shown inthe structure.

Position your cursor on the header of the structure. To changethe display sequence, right-click and choose Display Sequence→Identification - Name.

On the Basic Data tab page of the project definition, enter ## for theperson responsible and confirm your entry with Enter.

Save your project.

2. Open project E-99## Elevator Gr## in the Project Builder. So far, you haveonly created a project definition. In the WBS Element Overview, create WBSelements with the identifications (and descriptions) E-99## (ElevatorGr##), E-99##-1 (Engineering), E-99##-1-1 (ElectricalEngineering) and E-99##-1-2 (Mechanical Engineering). Toavoid making any mistakes when entering your data, use the @ entry aid. The




account assignment element operative indicator (Acct column) is to be set forall WBS elements. Flag WBS elements E-99## and E-99##-1 as planningelements as well (Plan column).

a) You are still in the Project Builder. The project you created earlier isdisplayed in the worklist under Last Projects Processed. To open yourproject, double-click project E-99## Elevator Gr##. Switch from thedetail data of the project definition to the WBS Element Overview .Enter the following data in the table (to set the operative indicators,scroll to the right in the table):

Level WBS Element Description Plan Acct1 @ Elevator Gr## x x

1 @1 Engineering x x

1 @11 ElectricalEngineering

x

1 @12 MechanicalEngineering

x

To create the WBS elements, choose Enter. The WBS elements arenow displayed underneath the project definition in the structure.

3. Create further WBS elements for your project E-99## in the Project Builderusing a template to copy from. In this way, you can put the experience gainedfrom past projects to use in your current project. In the structure underneathWBS element E-99##, insert further WBS elements. Use the contextmenu in the structure (right-hand mouse button) to do this and not thetemplate area. Use the subtree E-1001-2 of a standard work breakdownstructure to copy from. WBS element E-1001-2 (root) is also to be insertedunderneathWBS element E-99## and to the right of WBS elements thathave already been assigned. Make sure that you do not insert any activities.

Next derive the hierarchical structure of your work breakdown structure fromthe numbers of the WBS elements.




Finally, adjust the data of the new WBS elements to the requirements ofyour current project. To do this, assign the person responsible ##, projecttype Capital Investment, and investment profile 1000 to all newWBS elements.

a) Project E-99## is still open in the Project Builder. Select WBS element(not the project definition) E-99## Elevator Gr## in the structure.To include WBS elements, right-click and choose Include→ WBSElements.

A dialog box then appears. Choose Standard WBS and enter thefollowing data:

Field Name ValuesBelow E-1001-2

With Root x

Right x

Without Activities x !!!

Confirm your entries with Include. A subtree containing WBSelements for procurement is assigned to WBS element E-99##.

b) To derive the structure from the numbers of the WBS elements, chooseProject→ Derive Structure→ Execute.

In the structure, select WBS element E-99##-2 Procurement and,on the detail screen of the WBS element, go to the Basic Data tabpage, enter ## as the person responsible, and choose CapitalInvestment as the project type. Next, on the Control tab page,enter a value of 1000 in the Investment Profile field. Assign theperson responsible ##, project type Investment Project, andinvestment profile 1000 to WBS elements E-99##-2-1, E-99##-2-2,and E-99##-2-3 in the same way.

4. Use Drag&Drop to create a new WBS element E-99##-3 with the nameAssembly underneath WBS element E-99## Elevator Gr##. Set theoperative indicators of the new WBS element in such a way that you can plancosts and post them to this WBS element later on.

Analyze the hierarchical structure and operative indicators of the WBSelements in your project in the hierarchy graphic. If necessary, set theoperative indicators in such a way that only the WBS elements at levels1 and 2 allow costs to be planned.




In the hierarchy graphic, create a new WBS element with the identificationE-99##-4 and the name Acceptance. Assign this WBS elementunderneath WBS element E-99## in connect mode. In the hierarchy graphic,set the Planning Element operative indicator for the new WBS element.

Then save your project.

a) Project E-99## is still open in the Project Builder. Use Drag&Dropto drag a WBS Element from the template area (under IndividualObjects) to WBS element E-99## Elevator Gr## at the top of thehierarchy. Enter the following data on the detail screen of the WBSelement:

Field Name ValuesWBS Element E-99##-3

Text (without caption) Assembly

Planning Element x

Confirm your entries with Enter. The WBS element is displayed inthe structure.

b) To call up the hierarchy graphic, choose Hierarchy Graphic. Sinceyou do not want to plan costs for level-3 WBS elements E-99##-2-1,E-99##-2-2 and E-99##-2-3, deselect the Planning Element operativeindicator for these WBS elements. To do this, double-click the Planfield in the hierarchy graphic. The WBS elements are then no longerflagged as planning elements.

To create a newWBS element, choose Create. An input area appearsunderneath the display area. Select the WBS element in this input area(click it once). The shape of the cursor changes (box-shaped). Clicka free space in the display area. A dialog box appears with the detailscreen of the new WBS element. Enter the following data:

Field Name ValuesWBS Element E-99##-4

Text (without caption) Acceptance

Confirm your entries with Back. The newWBS element is displayedin the display area at level 1.

To start connect mode, choose Connect. The shape of the cursorchanges (pencil). Keeping your finger down on the left-hand mousebutton, draw a line from E-99## to E-99##-4. To deactivate connectmode, click a free space in the display area.




If you have not yet set the Planning Element operative indicator on thedetail screen of WBS element E-99##-4, double-click the appropriatePlan field of the WBS element in the display area. The operativeindicator is now set.

To save the changes you have made to your project, choose Backand Save.

5. Optional: Answer the following questions on project E-99##:

Which controlling area is project E-99## assigned to?

How many levels make up the work breakdown structure of project E-99##?

For which WBS elements can you plan revenues?

a) To answer the questions, open project E-99## in the Project Builder.To open the project, double-click project E-99## Elevator Gr##in the worklist.

You specify the controlling area on the Basic Data tab page of theproject definition when you create the project. In your project, thevalue 1000 (CO Europe) is entered in the CO Area field in the projectdefinition. The value was entered as a default value in the projectprofile.

The work breakdown structure comprises three levels. You cansee these in the structure on the left of the Project Builder or in thehierarchy graphic. The number of levels is also indicated in the tabularWBS element overview in the Level column.

Project E-99## is a pure cost project. This means that none of the WBSelements in your project is flagged as a billing element. You cannot,therefore, plan revenues for any WBS element.

If necessary, close your project with Back.



Lesson Summary

You should now be able to:� Describe the tasks and structure of work breakdown structures� Use the Project Builder and hierarchy graphic to maintain work breakdown

structures



Lesson: Activities and Networks

Lesson OverviewThis lesson looks at the structure and function of networks. The tasks performedby the various activities in a network are described using project T-200## as anexample.


� Describe the tasks and structure of networks� Use the Project Builder and network graphic to maintain networks

Business ExampleA customer inquiry regarding the construction of a turbine system is entered in theSales & Distribution department of your company. To create a quotation for thisinquiry, you create a project called �Turbine System T-200##� using a suitabletemplate to copy from. You then adapt the network to the specific requirementsof the project.

Structure and Function of NetworksNetworks map the flow of the project. The focus here is on describing, planning,controlling, and analyzing costs, scheduled dates, resources, and materialrequirements. The basic elements that go to make up a network include activitiesand relationships that describe the tasks and temporal dependencies between thevarious tasks in a project. SAP Project System supports the following activitycategories:

� Internal processing: for capacities to be staged in your own company� External processing: for tasks to be assigned externally� Service activities: for procuring external services� Costs: for planning additional primary costs

Activities are linked to each other by means of relationships - this results in acausal and temporal activity sequence. In this way, networks form a quantitystructure for planning dates (automatically via scheduling), costs (automaticallyvia costing), resources (internal activities and external services), and for planningmaterial requirements (by means of assigned components). You can createactivities and maintain the data for them in the Project Builder and projectplanning board, for example. In the Project Builder, you create activities for WBSelements. This means that the activities are assigned to the WBS elements inquestion. It also means that the planned and actual data for the activities (dates,


PLM200 Lesson: Activities and Networks

costs, payment data) can be aggregated at WBS element level. A network alwaysincludes a network header that contains the control data and default values forthe entire network.

Figure 13: Structure of Project T-200##

You use the activities in the network to plan the labor, capacities, materials, tools,and services you require to carry out various tasks in your project. By assigningmilestones to activities, you can document events that are particularly importantfor the progress of the project and reference their respective dates in billing orinvoicing plans, for example. During the project execution phase, commitmentand actual costs are updated automatically to the network activities as a result ofvarious business transactions (for example, confirmations, ordering processes,goods issues, incoming invoices). Key functions of networks and activities areshown in the �Tasks of the Network� diagram.



Figure 14: Tasks of the Network

Creating NetworksThe following diagram illustrates the various ways in which networks andactivities can be created and edited.



Figure 15: Maintenance Options

In addition to maintaining data manually and in the network graphic (1, 2), youcan also use existing operative structures or standard structures as templates tocopy from. When you create activities, you can use a standard network or anexisting network as a template to copy from (3). You can also incorporate standardnetworks in an existing network (4). Using the Project Builder or the projectplanning board, you can copy a standard project or existing operative project(including all of its activities) to a new project structure (5).



Figure 16: Network Structure Graphic

All of the functions you need to create or change a network are available inthe network graphic (the functions for inserting activities or relationships, forexample). You can access the network graphic from various functions in ProjectSystem (the Project Builder, project planning board, or the information system,for example). The cycle analysis is a function that you can only perform in thenetwork graphic. A cycle is a closed sequence of relationships and activities("closed" means that, when you start out from an activity, you end up back at thesame activity, by way of relationships). If the activity-relationship-activity path iscyclical, you will not be able to schedule the network. Cycle analysis is a tool thatenables you to detect cyclical relationships, and correct them.



Exercise 3: Activities and Networks

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create projects in the Project Builder using a template� Edit networks in the Project Builder

Business ExampleYou want to create a project for constructing a turbine system. The planned datafrom this project will be used later to create a quotation. To put the experiencegained from past projects to use and to enable these projects to be compared moreeasily, use standard structures as templates when you create your project. Thenadapt the operative structures to the specific requirements of the current project.


Task: Project T-200##Create a project called T-200## in the Project Builder. Get to know the variousways of editing networks in the Project Builder.

1. In the Project Builder, use a template to create a project with the identificationT-200## and description Turbine Gr##. Use the standard projectT-20001 as a template and Turbine Model Group 1 as the project profile.Make sure that any assigned activities are also copied. The start date foryour project is today. The provisional, estimated finish date is one yearlater. Save project T-200##.

2. Open project T-200## Turbine Gr## in the Project Builder. Assign WBSelement T-200##.1 Engineering and Design the following three activities:

Some of the engineering work for the rotating blades of the turbine is tobe outsourced to an engineering company. Create an externally processedactivity 1400 for this with the description Engineering of RotatingBlades. Use purchasing info record 5500000093.

Employees in your company are to perform a quality check on the outsourcedengineering work. Create an internally processed activity 1500 for this withthe description Quality Check on Rotating Blades. Plan 10hours work at work center 2400 and a duration of 2 days for performing thecheck.




Use costs activity 6000 with the description Service to plan additionalcosts amounting to 4,000 euro for cost element 466000.

Assign this new costs activity 6000 Service using Drag&Drop to WBSelement T-200##.5 Assembly Processing.

3. You have not yet created any temporal relationships between the activitiesyou created previously and other activities in your network. Create thefollowing relationships:

In the Relationship Overview of the Project Builder, first create an FSrelationship from activity 5000 Assembly and Test Run to activity 6000Service.

Then call up the network graphic and select the appropriate view. Choosejust the display area, for example, and select the appropriate view for theactivities. In connect mode, create FS relationships between activities 1000and 1400, 1400 and 1500, as well as 1500 and 4000.

Plan material costs for components that you will not assign to the activitiesuntil later on. On the Assignments tab page, enter 150,000 euro and135,000 euro as material planning values in activities 3000 PreliminaryOrders and 3100 Material Procurement Plant Components.

Save the changes you have made to the project.

4. Optional: Answer the following questions on the network and activities inyour project T-200##:

Which number is entered in your network for the MRP controllerresponsible?

In which internally processed activity in your project has a work centernot been maintained?

Which purchasing group is responsible for purchasing the external servicethat you planned using activity 1400 Engineering of Rotating Blades?



Solution 3: Activities and NetworksTask: Project T-200##Create a project called T-200## in the Project Builder. Get to know the variousways of editing networks in the Project Builder.

1. In the Project Builder, use a template to create a project with the identificationT-200## and description Turbine Gr##. Use the standard projectT-20001 as a template and Turbine Model Group 1 as the project profile.




Make sure that any assigned activities are also copied. The start date foryour project is today. The provisional, estimated finish date is one yearlater. Save project T-200##.

a) In the SAP menu, go to the Project System folder and open the ProjectBuilder. Choose SAP Menu→ Logistics→ Project System→ Project→ Project Builder.

To create a project using a template, choose Create and CopyProject. Enter the following data in the dialog box:

Field Name ValuesProject Definition T-200##

Description Turbine Gr##

Start Today’s date

Finish Date Today + 1 year

Project Profile Turbine Model Group 1Template Std. proj. def. T-20001

Leave other fields as they are

The With Activities indicator should be set. Confirm your entries andany warnings that appear regarding the finish date with Enter.

Hint: In the structure, you can now see various objects thatwere copied from the standard project:

� Project definition� WBS elements� Network header (with the provisional number, for

example, %00000000001)� Activities� Milestone

Save your project.

2. Open project T-200## Turbine Gr## in the Project Builder. Assign WBSelement T-200##.1 Engineering and Design the following three activities:

Some of the engineering work for the rotating blades of the turbine is tobe outsourced to an engineering company. Create an externally processedactivity 1400 for this with the description Engineering of RotatingBlades. Use purchasing info record 5500000093.




Employees in your company are to perform a quality check on the outsourcedengineering work. Create an internally processed activity 1500 for this withthe description Quality Check on Rotating Blades. Plan 10hours work at work center 2400 and a duration of 2 days for performing thecheck.

Use costs activity 6000 with the description Service to plan additionalcosts amounting to 4,000 euro for cost element 466000.

Assign this new costs activity 6000 Service using Drag&Drop to WBSelement T-200##.5 Assembly Processing.

a) You are still in the Project Builder. The project you created earlier isdisplayed in the worklist under Last Projects Processed. To open yourproject, double-click T-200## Turbine Gr##.

Hint: If the system does not display all levels, fully expandthe structure . To avoid having to carry out this step, youcan enter a suitable value in the Project Builder options forthe number of hierarchy levels to be displayed (Settings→Options).

In the structure, select WBS element T-200##.1 Engineeringand Design. To create an externally-processed activity for thisWBS element, go to the template area and double-click ExternalProcessing (under Individual Objects→ Activity). Enter the followingdata on the detail screen of the activity:

Field Name ValuesActivity 1400

Text (without caption) Engineering of RotatingBlades

Info Record 5500000093


Choose Enter to confirm your entries and to confirm that purchasingdata should be copied from the purchasing info record. The activity iscreated and is displayed in the structure underneath WBS elementT-200##.1 Engineering and Design.

b) In the structure, select WBS element T-200##.1 Engineering andDesign again. To create an internally-processed activity for this WBSelement, go to the template area and double-click Internal Processing.Enter the following data on the detail screen of the activity:





Text (without caption) Quality Check on RotatingBlades

Work Center 2400

Work 10 HRNormal Duration 2 DAY


Confirm your entries with Enter.

c) In the structure, select WBS element T-200##.1 Engineering andDesign again. To create a costs activity for this WBS element, go to thetemplate area and double-click Costs. Enter the following data onthe detail screen of the activity:


Text (without caption) Service

Amount 4,000 EURLeave other fields as they are

Confirm your entries with Enter. The activity is displayed in thestructure underneath WBS element T-200##.1 Engineering andDesign.

To assign the costs activity to WBS element T-200##.5 AssemblyProcessing, select activity 6000 Service in the structure, and holdingthe left-hand mouse button down, drag it to WBS element T-200##.5Assembly Processing.

3. You have not yet created any temporal relationships between the activitiesyou created previously and other activities in your network. Create thefollowing relationships:

In the Relationship Overview of the Project Builder, first create an FSrelationship from activity 5000 Assembly and Test Run to activity 6000Service.

Then call up the network graphic and select the appropriate view. Choosejust the display area, for example, and select the appropriate view for theactivities. In connect mode, create FS relationships between activities 1000and 1400, 1400 and 1500, as well as 1500 and 4000.




Plan material costs for components that you will not assign to the activitiesuntil later on. On the Assignments tab page, enter 150,000 euro and135,000 euro as material planning values in activities 3000 PreliminaryOrders and 3100 Material Procurement Plant Components.

Save the changes you have made to the project.

a) Project T-200## Turbine Gr01 is still open in the Project Builder. Youhave already selected activity 6000 Service in the structure. Tocreate a relationship for activity 5000 Assembly and Test Run in tabularmode, choose Relationship Overview. In the Activity Selectionarea, select activity Assembly and Test Run and choose CreateRelationship.

Hint: You can restrict the number of activities listed in ActivitySelection by entering suitable criteria, such as activity numberor activity short text. Alternatively, you can enter the activitynumber directly in the list of relationships and create therelationship in this way.

The activity number appears in the list of relationships. The Scs(successor) indicator is not set. This means that activity 5000Assembly and Test Run is the predecessor of activity 6000 Service. FS(finish-start) is entered as the type of relationship.

b) To call up the network graphic, choose Network Graphic. Inthe network graphic, choose Settings→ View→ Complete View.If necessary, select the appropriate view for the activities. To do so,choose Activities... and then small in the dialog box for the activitydisplay.

To create relationships in graphical mode, choose Connect. Theshape of the cursor changes (pencil). Holding the left-hand mousebutton down, draw a line from the end of activity 1000 (predecessor)to the start of activity 1400 (successor). An FS relationship is thencreated between activities 1000 and 1400. Repeat this procedure tocreate FS relationships between activities 1400 and 1500 and 1500and 4000. You can deactivate connect code by clicking a free spacein the display area.

If necessary, adjust the complete graph. To do so, choose Adjust....Then confirm the selected option Adjust Complete Graph withEnter.

c) To plan material costs, call up the detail screen of activity 3000Preliminary Orders. To do so, double-click activity 3000 in thenetwork graphic. Choose Assignments and enter 150,000 in the




Material Planning field. To return to the network graphic, chooseBack. Repeat this procedure to plan 135,000 euro for activity 3100Material Procurement Plant Components.

To exit the network graphic, choose Back. If necessary, confirm theprompt asking you if you want to save the node items by choosing Yes.To save the changes you have made to project T-200##, choose Save.

4. Optional: Answer the following questions on the network and activities inyour project T-200##:

Which number is entered in your network for the MRP controllerresponsible?

In which internally processed activity in your project has a work centernot been maintained?

Which purchasing group is responsible for purchasing the external servicethat you planned using activity 1400 Engineering of Rotating Blades?

a) To answer the questions, open project T-200## in the Project Builder.To open the project, go to the worklist (under Last Projects Processed)and double-click project T-200## Turbine Gr##.

You can find the number of the MRP controller responsible on theControl tab page of the network header . The value 101 PP isdefined for your network.

To display a list of all the activities in your network, choose the networkheader in the structure and then Activity Overview. On the InternalProcessing tab page, all the internally-processed activities are listed in atable. No work center has been maintained for activity 4000 Productionof Running Gear, Bearing, Valves. The activity is currently only usedfor planning dates. Later on, you will assign material components tothe activity and then trigger the manufacturing process for materialsin production.

Go to the External Processing tab page in the activity overview. In thePurchasing Group column (scroll the list to the right), you can seethe value 001 for the purchasing group of activity 1400 Engineeringof Rotating Blades. This purchasing group was copied from thepurchasing info record.

If necessary, close your project with Back.



Lesson Summary

You should now be able to:� Describe the tasks and structure of networks� Use the Project Builder and network graphic to maintain networks



Lesson: Milestones, Documents, and Tools

Lesson OverviewThis lesson describes various objects that you can assign to WBS elements andactivities that are used for information and analysis purposes and for controllingprocesses. The mass change function discussed in this lesson is a tool you can useto change large volumes of project data very quickly. Open Project System (OpenPS) is introduced as the tool for exchanging data with Microsoft Project.


� Assign PS texts, documents, and milestones� Use the mass change function� Name the functions of Open PS

Business ExampleA number of texts and other documents (such as CAD drawings) are important forexecuting the project later on. You assign these documents to project T-200##.Using milestones, you can plan dates for subsequent billing. A mass changefunction is available for changing large volumes of data in your project.

PS Texts, Documents, and MilestonesPS texts are user-definable texts that are managed in a PS text catalog. Thetexts are grouped according to text type and can be created in several differentlanguages. You can create PS texts in SAPScript format or using MicrosoftWord (and Microsoft PowerPoint or Microsoft Excel, if required). The files inquestion are stored in the SAP database. You can assign PS texts to one or moreWBS elements or activities.

You can use the SAP Document Management System in Project System toassign document info records to WBS elements and activities. In the DocumentManagement System, you can assign original (external) documents in variousformats (XLS (Microsoft Excel), DOC, PPT, BMP, TIF, CAD formats, and so on)to a (SAP system-internal) document info record. In SAP Project System (SAPPS), you can display the document info records and the corresponding originaldocuments online. You can also display the original documents using the Internet.

You can assign milestones to activities and WBS elements and documentevents that are particularly important in a project. Milestones have a range ofapplications. They can be used for milestone billing in SD, for example, to startworkflow tasks, or to release activities that are yet to be carried out. They can alsobe used purely for information purposes or for analyses in various reports.


PLM200 Lesson: Milestones, Documents, and Tools

Figure 17: PS Texts, Documents, Milestones

Mass ChangeYou can use the mass change function to make cross-project changes (whererequired) to fields pertaining to project definitions, WBS elements, networks,activities, milestones, and relationships. The same authorization objects as forindividual changes are used for mass changes. You can use formula values fornumeric fields instead of field values or fixed values. For example, in selectedactivities, you can double the values in the Work field or replace them with adifferent calculated value without having to make the changes for the individualactivities manually. You can test the extent of your changes before you actuallymake a mass change. Remember that, if you make a mass change, this mightmean that a large number of objects will be changed simultaneously. In manycases, you cannot undo the changes made. For this reason, always be particularlycareful when you use this transaction.



Figure 18: Mass Change

Open PSOpen PS is the component that handles communication between SAP PS andother project management systems or personal organizers. Open PS is basedon the open PS interface PS-EPS (Interface to External Project Software) thatuses standardized BAPI technology (BAPI=Business Application ProgrammingInterface). You can develop your own interfaces based on PS-EPS. With OpenPS, however, SAP provides its own interface solution for exchanging data withMicrosoft Project. Open PS allows you to exchange data directly with MicrosoftProject in a number of different ways:

� Create a project in Microsoft Project from an SAP PS project� Transfer a project from Microsoft Project to SAP PS� Reconcile data from a project in Microsoft Project with a project in SAP PS

Open PS is not an integral component of the SAP system; it is available asan add-on to SAP PS. For more information about Open PS and the softwarerequired for installing it, see the home page for Project System on the SAP ServiceMarketplace at service.sap.com/ps.



Figure 19: Open PS



Exercise 4: Milestones, Documents, andMass Change

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create milestones in the Project Builder� Create PS texts and assign documents� Use the mass change function in the Project Builder

Business ExampleTo be able to plan billings dates later on, create an additional milestone in customerproject T-200##. Use PS texts and documents from Document Management todocument the project. Maintain a person responsible for all the WBS elements inyour project in one single step using the mass change function.


Task: Extending Project T-200##Extend project T-200##, which you created earlier, in the Project Builder toinclude milestones, PS texts, and documents. Use the mass change function formore extensive changes.

1. Open project T-200## in the Project Builder. Assign a milestone with thedescription Partial Invoice 30% and usage PS01 to activity 4000Production of Running Gear, Bearing, Valves. You want the milestone dateto be determined from the earliest finish date for the activity and to be able touse it in a sales document to plan revenues (billing percentage: 30 %).

2. In the PS text overview, create a PS text Specification Gr## withtext type 01 (Function Description) and format 2 (DOC Format) for theWBS element at the top of project T-200##. Enter a text of your choicefor specifying the turbine system.

Assign documents from Document Management to the same WBS elementin the document overview. Use document type DRM as the key, the numberPS-TUR-001-00001, the document part 000, and version number 00.Save the changes you have made to the project.




Caution: The participant groups block each other when assigningdocuments. For this reason, each group should complete this stepas quickly as possible.

3. Open project T-200## again and display an original document of thedocument you assigned earlier in the Project Builder.

Optional: Call up the document info record of the document from theProject Builder.

4. Use the mass change function in the Project Builder to assign the personresponsible with number ## to all the WBS elements in project T-200##.Save the changes you have made to the project.



Solution 4: Milestones, Documents, andMass ChangeTask: Extending Project T-200##Extend project T-200##, which you created earlier, in the Project Builder toinclude milestones, PS texts, and documents. Use the mass change function formore extensive changes.

1. Open project T-200## in the Project Builder. Assign a milestone with thedescription Partial Invoice 30% and usage PS01 to activity 4000Production of Running Gear, Bearing, Valves. You want the milestone dateto be determined from the earliest finish date for the activity and to be able touse it in a sales document to plan revenues (billing percentage: 30 %).

a) In the SAP menu, go to the Project System folder and open the ProjectBuilder. Choose, for example, SAP Menu→ Logistics→ ProjectSystem→ Project→ Project Builder.

To open your customer project, go to the worklist (under Last ProjectsProcessed) and double-click project T-200## Turbine Gr##. Ifnecessary, expand the entire project structure .

Use Drag&Drop to drag a milestone from the templates area (underIndividual Objects) to activity 4000 Production of Running Gear,Bearing, Valves. Enter the following data on the detail screen of themilestone:

Field Name ValuesMilestone (text) Partial Invoice 30%

Usage PS01 Partial Billing (Deb.)Usage Sales Document Date x

Invoice Percentage 30 %Offset to Activity Offset to Finish x


Confirm your entries with Enter. The milestone is displayed in thestructure under activity 4000 Production of Running Gear, Bearing,Valves.

2. In the PS text overview, create a PS text Specification Gr## withtext type 01 (Function Description) and format 2 (DOC Format) for theWBS element at the top of project T-200##. Enter a text of your choicefor specifying the turbine system.




Assign documents from Document Management to the same WBS elementin the document overview. Use document type DRM as the key, the numberPS-TUR-001-00001, the document part 000, and version number 00.Save the changes you have made to the project.

Caution: The participant groups block each other when assigningdocuments. For this reason, each group should complete this stepas quickly as possible.

a) Project T-200## is still open in the Project Builder. In the structure,select WBS element T-200## Turbine and choose PS TextOverview. Enter the following data in the table overview for the PStexts:

Field Name ValuesST (Text Type) 01 Function DescriptionDescription Specification Gr##

T (Format) 2 DOC Format

Confirm your entries with Enter. The editor for DOC format thenappears. Enter a text of your choice and choose Save.

b) To assign documents from Document Management to the same WBSelement, go from the PS text overview to the document overview. Dothis by choosing Document Overview. Enter the following data inthe table overview:

Field Name ValuesType DRM

Document PS-TUR-001-00001

DPt (Document Part) 000

VS (Document Version) 00

Confirm your entries with Enter. Save your changes by choosingSave.

3. Open project T-200## again and display an original document of thedocument you assigned earlier in the Project Builder.




Optional: Call up the document info record of the document from theProject Builder.

a) To open your project, go to the worklist and double-click projectT-200## Turbine Gr##. If necessary, expand the entire project

structure. In the structure, PS text Specification GR## and documentDRM PS-TUR-001-00001 00 000 are displayed underneath WBSelement T-200## Turbine.

To display the assigned original documents, expand document DRMPS-TUR-001-00001 00 000 in the structure. Select original documentJT Pump Assembly in the structure and choose Display OriginalAppl. File.

Hint: The system may require you to select the frontend type.Choose PC with Windows. You can only display the JT fileif the SAP GUI (including the EAI Viewer) has been fullyinstalled on your frontend.

To view the entire object displayed in the CAD drawing, you can usethe cursor to rotate it in any direction.

b) Optional: To display the document info record, select documentDRM PS-TUR-001-00001 00 000 in the structure and choose

Details. The document info record contains further information on thedocument. To return to the Project Builder, choose Back.

4. Use the mass change function in the Project Builder to assign the personresponsible with number ## to all the WBS elements in project T-200##.Save the changes you have made to the project.

a) Project T-200## is still open in the Project Builder. In the structure,select the project definition T-200## Turbine Gr##. To execute themass change, choose Mass Change. In the dialog box that appears,choose WBS Elements.

A further dialog box appears in which you can choose the fields youwant to change. In the Pool, select the Person Responsible line andcopy the field to your selection criteria with Choose. Confirm yourselection with Enter.

Enter your group number ## in the Person Responsible: New Valuefield and start the mass change with Execute.

A log appears that lists all of the changes made. To exit the log displayand save your changes, choose Back and Save.



Lesson Summary

You should now be able to:� Assign PS texts, documents, and milestones� Use the mass change function� Name the functions of Open PS


PLM200 Unit Summary

Unit SummaryYou should now be able to:� Describe the tasks and structure of work breakdown structures� Use the Project Builder and hierarchy graphic to maintain work breakdown

structures� Describe the tasks and structure of networks� Use the Project Builder and network graphic to maintain networks� Assign PS texts, documents, and milestones� Use the mass change function� Name the functions of Open PS


Unit Summary PLM200


Unit 3Reporting

Unit OverviewDuring the course of a project, a large volume of data is generated. This datahas to be prepared efficiently, transparently, and comprehensively to satisfy thevarious information requirements of the project team members throughout allphases of the project. This unit looks at the various options for evaluating andanalyzing project data.


� List various reporting options for project-specific data� Name the functions of the structure information system and cost reports

Unit ContentsLesson: Reporting ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Exercise 5: Project Information System .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77


Unit 3: Reporting PLM200

Lesson: Reporting

Lesson OverviewThis lesson gives you an overview of the various reporting options available forproject-specific data. It also introduces you to the structure information system anda number of commercial project reports used in SAP Project System (SAP PS).


� List various reporting options for project-specific data� Name the functions of the structure information system and cost reports

Business ExampleYou want to use reports for monitoring your projects during the planning andexecution phases. You can obtain an overview here of the various reportingfunctions for projects.

Overview of Reporting OptionsThe project information system is a flexible, sophisticated tool with which youcan monitor and control your project data. You can analyze individual projects,subprojects, or several projects together. Overview reports and reports forproviding greater detail are available.


PLM200 Lesson: Reporting

Figure 20: Information Systems

You can use the following information systems to evaluate important key figuresfor your projects:

� Structure information system� Cost/revenue/payment (Controlling) information system, with hierarchy

reports, cost element reports, and the SAP List Viewer for line items� Capacity analysis� Order report, lists of reservations, purchase requisitions, purchase orders

pertaining to the projects, ProMan� Stock/requirements overview� Progress analysis, progress tracking� SAP Business Information Warehouse (SAP BW)

The following reports and systems are available, in particular for cross-projectevaluations:

� Project summarization� SAP Executive Information System (SAP EIS)� Profit Center Accounting reports� Profitability Analysis reports



Figure 21: Level of Detail

You can use SAP EIS to evaluate logistical and accounting key figures acrossprojects. Reporting is performed using drilldown reports. You can definecharacteristics of your choice based on your project master data (project type,business area, or person responsible for project, for example). In ProfitabilityAnalysis, reporting is performed at profitability segment level. Reporting isbased on value fields and characteristics. The reporting tools used are calleddrilldown reports. The reports allow you to evaluate project data and productiondata together. In Profit Center Accounting, reporting is based on profit centers andthe profit center hierarchy. You can execute reports here that will enable you tomonitor the success of your organizational structure.

Hierarchy reports are drilldown reports for evaluating the costs, revenues andpayments of one or more projects. Reporting here is based on value categories.Hierarchy reports allow you to drilldown on the basis of various characteristics,and to call up line items and documents. Cost element reports enable you toevaluate project costs and revenues. The data is presented in a cost-element-baseddisplay. Interactive displays in Microsoft Excel are also possible. Line itemreports enable you to evaluate line items and documents. These reports areparticularly useful because they allow you to select columns, calculate subtotals,and call up a full range of accounting documents.

The structure information system enables you to evaluate objects as well aslogistical and accounting key figures. You can also edit (change, create) objectsfrom the information system.



With SAP BW, you can evaluate business data across systems and applications.SAP BW allows you to display data interactively with high-performance,easy-to-use evaluations.

Structure Information SystemThe structure information system evaluates the structural and logistical aspects ofprojects; but you can also display costs, revenues, and other data in the structure.On the initial screen, you specify which data you want the system to select fromthe logical database in Project System. You can select the data you require usingdynamic selection or object statuses.

You can analyze and edit the entire hierarchical structure of a project �including documents, PS texts, networks, other orders, investment programs,and SD documents � via the structure overview and project structure overviewtransactions. You can navigate from the structure overview to individualoverviews, detail screens, and detail screen lists. You can also access theindividual overviews directly. SAP List Viewer-based or extended individualoverviews are available for the individual overviews.

Figure 22: (Project) Structure Overview and Individual Overviews

Depending on which reports you choose, you can avail of a range of interfacesand functions. Important functions supported by these reports allow you to selectfields from project structures, display them as columns, and use them to sort orgroup objects. You can define filters or exceptions to select particular objects or



highlight these in a different color. In addition to displaying objects in line with thehierarchy of the project structures, you can use other views for your evaluations.For example, you can evaluate your objects in accordance with your cost center orprofit center hierarchy. You can also display your project data graphically, send itvia SAP Office, and export it in different formats. You can store the settings youhave made in the structure information system using profiles and display variants.

Figure 23: Functions of the Structure Information System

The structure information system is not merely a tool for displaying information.You can also create and change project structures (for example, project definitions,WBS elements, networks, and activities) from the reports. If you have amulti-level product structure with production and planned orders (assigned toWBS elements), the entire structure is displayed in the structure overview, and canbe edited. You can also call up other assigned orders to display or change objects.From the information system, you can confirm activities, and initiate pools ofconfirmations or confirmation workflows. You can also go to the mass changetransaction if you do not want to change an individual object, and create collectiveconfirmations. Once you have made your changes, you can refresh the data (inother words, read it from the database again) to evaluate the changes straight away.You can use the right-hand mouse button (context-sensitive) to choose functionsthat are valid for the current cursor position.



You can call up the following graphics from the structure information system.

� Hierarchy graphic (WBS elements and activities)� Network graphic (activities)� Structure graphic (other objects - with the exception of WBS elements and

activities - are also displayed: SD documents, project orders, or investmentprograms, for example)

� GANTT chart (unlike the project planning board, this can be called up forseveral projects)

� Portfolio (X-Y representation of two columns)� SAP Business Graphics (for example, total curves, histograms)

You can export data from the structure information system in a range of formats,for example Graneda, Microsoft Access, Microsoft Project (MPX), HTML, TXT,Rich Text Format, or various spreadsheet formats.

Commercial Project ReportsThe costs/revenues/payments hierarchy reports enable you to evaluate your PSdata interactively. Reports of this type can evaluate your data according to specificcharacteristics. Each report contains a wide range of lists that you can accessinteractively. The hierarchy reports include user-friendly functions that enable youto work online in these lists. Using the drilldown functions, you can navigate fromthe basic list to the various levels in the report. You can also change the sequenceof characteristics as you go. You can select individual elements and analyze theircosts in greater detail using drilldown lists.

For example, you could start by displaying the planned costs for the entireproject and then how the planned costs are distributed among the various valuecategories for WBS element WBS 2. You could then analyze the planned costsof WBS element WBS 2 for value category 620 according to cost distributionto the various periods.



Figure 24: Hierarchy Reports

In hierarchy reports, you can sort columns and rows, compress or expandhierarchical displays to the required level, use exceptions to highlight values ina different color, or call up other reports. You can also carry out conversions todifferent currencies, use graphical display options, send and print data, and useexport functions in hierarchy reports.

Cost element reports display costs by cost element. In a navigation panel in thecost element reports, for example, you can go to a structure and choose the objectwhose costs you want to analyze or call up an appropriate list and choose theperiod you want to evaluate. You can use sort and filter functions here, as well asdifferent currencies to display the data. You can also print, send, and export datafrom cost element reports. In the report itself, you can output the data in MicrosoftExcel or Lotus 123 format if you want to use a spreadsheet to calculate averagevalues, for example. You can call up other reports, such as line item reports, fromcost element reports. In expert mode, you can refresh your data.



Figure 25: Cost Element Reports

All line items are evaluated using the SAP List Viewer. This tool standardizes andsimplifies the procedure for working with lists in SAP systems. In addition totypical list functions, such as flexible column selection and automatic adjustmentof the column width, sorting and filtering data by column, as well as calculatingtotals and subtotals, the SAP List Viewer also allows you to print, send, and exportdata. You can store the settings you have made to the SAP List Viewer as layoutseither just for yourself (user-specific) or make them generally available. In theline item report, you can also call up and analyze the original documents as well asthe account documents for the original documents. You can call up the reports forthe line items directly or use report interfaces between the various cost reports.



Figure 26: Line Item Reports

You can go from the hierarchy report you are in to other hierarchy reports or costelement reports by choosing the Goto menu (or the appropriate icon). These reportinterfaces enable you to go from hierarchy reports and cost element reports toline item reports. Then you can branch from the line item reports to the originaldocuments and to the various accounting documents. This allows you, forexample, to drill down the cost structure of the hierarchy report so that you cananalyze the actual costs in your project. You can select fields in the report andgo to a cost element report to carry out further analyses. You can call up the lineitem report you require from the cost element report to display the accountingdocuments.



Figure 27: Evaluation Using Cost Reports

SAP Business Information WarehouseWith SAP BW, you can evaluate data from transactional SAP applications, such asSAP PS, as well as from any other business applications and external data sources,such as databases, online services, and the Internet. The descriptions of the data(metadata) are stored separately from the source in a common metadata repository,which means that data from a wide range of sources can be combined so that it canbe analyzed further. The Administrator Workbench is responsible for controlling,monitoring, and maintaining the data procurement processes.



Figure 28: SAP Business Information Warehouse

SAP BW supports Online Analytical Processing (OLAP) for preparinglarge volumes of operative and historical data. OLAP technologies allowmultidimensional analyses to be performed according to various business criteria.InfoCubes describe a self-contained dataset (from a reporting perspective) thatcan be evaluated.

You analyze data in SAP BW using Business Explorer tools (BEx tools). TheBusiness Explorer includes the following BEx tools:

� BEx Analyzer for defining queries, retrieving data from the BW database,and for analyzing and presenting data in Microsoft Excel or on the Web

� BEx Browser for organizing and managing workbooks and documents� BEx Map for visualizing data on geographical maps� BEx Web Application Designer for generating HTML pages, for example,

that contain BW-specific content such as tables, charts, or maps.

The Business Explorer provides a wide range of different users with access tothe information stored in SAP BW. The information can be accessed via theEnterprise Portal, for instance using an iView that you can call up in addition to theapplications from which the data was extracted, via the intranet (Web ApplicationDesign), or via mobile devices (for example, WAP or i-Mode-capable cellularphones, Personal Digital Assistants). Additional interfaces are also available forconnecting frontend tools from third-party vendors.



�Business Content� is the term used to describe predefined role and task-relatedinformation models. The Business Content for SAP PS contains, for example,predefined roles, InfoCubes, and queries. You can use Business Content withoutmaking any modifications to it. You can, however, change it or even use it as atemplate for creating your own content, thereby speeding up the implementationof SAP BW.



Exercise 5: Project Information System

Exercise ObjectivesAfter completing this exercise, you will be able to:� Use the structure overview and project structure overview in the structure

information system� Perform evaluations using a cost element report� Use line item reports for evaluations� Optional: Analyze data in a hierarchy report according to various criteria

Business ExampleFamiliarize yourself with the various reports from the structure and controllinginformation systems in order to analyze the project data. Use project E-9990to do this. This project has reached the execution phase and, therefore, alreadycontains planned and actual data.

Task 1: Structure Information SystemUse the structure information system to evaluate project E-9990. To do this, firstcall up the structure overview. Then view the project in the project structureoverview.

1. Call up the structure overview in the structure information system in ProjectSystem. Select the data in project E-9990.

Adjust the settings so that the values are not aggregated.

In the structure overview, the project definition, WBS elements, networkheader, activities, milestones, and documents are displayed for projectE-9990. Go from the report to the detail screen of the only general costsactivity in the project.

Go back to the structure overview and then to the SAP menu without savingthe data you have selected.

2. Use the project structure overview to branch to the individual overview toanalyze project E-9990. Adjust the layout of the report in such a waythat the Archiving Session, Version Group, and Version Key columns aredisplayed.

Change your changes in user-defined layout Gr## with the descriptionGroup ## and return to the SAP menu.




Task 2: Controlling Information SystemAnalyze the costs in project E-9990 using the controlling information system.Use a cost element report for the evaluation and a line item report to analyze theactual costs in detail.

Optional: Use a hierarchy report to evaluate the project costs according to variouscharacteristics.

1. Call up the plan-based cost element report Actual/Commitment/Total/Plan inCO Area Currency in the controlling information system in Project System.Select project E-9990. Because the project began in a previous fiscal year,you have to adjust the selection criteria. On the selection screen, enter thefiscal years 1995 to the current year. Then execute the report.

To which cost elements were actual costs posted in the project?

2. Go from the cost element report to a line item report for the actual costsin project E-9990. Adjust the layout of the report temporarily so that theappropriate partner object is displayed in a column. From which cost centerdoes the project use activities?

Exit the line item and cost element reports and go back to the SAP menuwithout saving the data.

3. Optional: Evaluate the costs in project E-9990 using the plan-basedhierarchy report Plan/Actual/Commitment/Rem.Plan/Assigned in thecontrolling information system in Project System. Use the graphical reportoutput as the output type when you execute the report. Drill down the dataaccording to the Business Transaction characteristic.

Then analyze how the planned costs for the Standard Costing (Primary)business transaction are distributed over various periods (drill down).Finally, return to the SAP menu.



Solution 5: Project Information SystemTask 1: Structure Information SystemUse the structure information system to evaluate project E-9990. To do this, firstcall up the structure overview. Then view the project in the project structureoverview.

1. Call up the structure overview in the structure information system in ProjectSystem. Select the data in project E-9990.

Adjust the settings so that the values are not aggregated.

In the structure overview, the project definition, WBS elements, networkheader, activities, milestones, and documents are displayed for projectE-9990. Go from the report to the detail screen of the only general costsactivity in the project.




Go back to the structure overview and then to the SAP menu without savingthe data you have selected.

a) To call up the structure overview, choose SAP Menu→ Accounting→ Project System→ Information System→ Structures→ StructureOverview. Enter E-9990 in the Project field and choose Execute.

Hint: Using the multiple selection function, you can evaluateseveral projects at the same time. You can, however, also useappropriate selection criteria, a status profile, or dynamicselections to restrict the data selected to specific objects. Youcan save your selection criteria as a variant.

b) The planned and actual data is aggregated in the project structure. Tochange the values to non-aggregated values, choose Settings→ ValueDisplay→ Not Aggregated. The values are now only displayed forthe individual activities.

c) In the structure overview, the various objects in the project aredisplayed together. In the Object Type column, you can see thatactivity 3000 is a general costs activity. To call up the detail screen forthis activity, double-click activity number 3000 in the Project Objectcolumn. The system calls up the transaction for displaying the detaildata of the costs activity. To go back to the structure overview, chooseBack in the detail screen, and then Back twice more.

Hint: In the structure overview, you can display assignedorders from other applications, such as production,maintenance, and internal orders, as well as sales documents,such as customer inquiries and sales orders, in addition to theobjects from Project System, documents and assigned materialcomponents. You can call up the transaction for displayingand editing these objects from the structure overview. Byrefreshing the data in the report, you can display the changesmade to the objects directly in the structure overview.

To exit the overview without saving your data, choose Back and Noin the dialog box. To return to the SAP menu, choose Back again.

2. Use the project structure overview to branch to the individual overview toanalyze project E-9990. Adjust the layout of the report in such a waythat the Archiving Session, Version Group, and Version Key columns aredisplayed.




Change your changes in user-defined layout Gr## with the descriptionGroup ## and return to the SAP menu.

a) To call up the project structure overview, choose (for example) SAPMenu→ Accounting→ Project System→ Information System→Structures→ Project Structure Overview. Enter E-9990 in the Projectfield and choose Execute. Choose GoTo→ Individual Overview→Project Definitions.

To hide columns, select Change Layout. Go to the Displayed Columnsarea on the left of the dialog box and select the Archiving Session,Version Group, and Version Key lines, then choose Show SelectedFields. Confirm the change you made with Copy. The reportdisplay is then adjusted accordingly.

b) To save the changes you made to the report layout for a specific user,choose Save Layout. In the dialog box, enter Gr## and Group## in the Layout and Description fields, then choose Save.

Hint: In the project structure overview, you can also avail offunctions that allow you to, for example, display, change, orexport data, or to depict data in graph format. The projectoverview, however, does not offer the full range of functions ofthe structure overview.

To exit the overview without saving your data, choose Back and Noin the dialog box. To return to the SAP menu, choose Back again.

Task 2: Controlling Information SystemAnalyze the costs in project E-9990 using the controlling information system.Use a cost element report for the evaluation and a line item report to analyze theactual costs in detail.

Optional: Use a hierarchy report to evaluate the project costs according to variouscharacteristics.

1. Call up the plan-based cost element report Actual/Commitment/Total/Plan inCO Area Currency in the controlling information system in Project System.Select project E-9990. Because the project began in a previous fiscal year,you have to adjust the selection criteria. On the selection screen, enter thefiscal years 1995 to the current year. Then execute the report.




To which cost elements were actual costs posted in the project?

a) To evaluate project E-9990 in the cost element report, go to theProject System menu and choose Project System→ InformationSystem→ Financials→ Costs→ Plan-Based→ By Cost Element→Actual/Commitment/Total/Plan in CO Area Currency. On the initialscreen, enter the following selection criteria:

Field Name ValuesProject E-9990

From Fiscal Year 1995

To Fiscal Year Current year


To start the report, choose Execute.

Hint: In the Variation area on the left, you can choose theobject whose costs you want to evaluate on the right. Inaddition to the planned costs and actual costs of the variousobjects, you can also evaluate commitment costs, if necessary,in the report on the basis of purchase requisitions or purchaseorders.

Actual costs are displayed in the report for the following cost elements:

� 619000 DAA Production� 620000 DAA Machine Costs

2. Go from the cost element report to a line item report for the actual costsin project E-9990. Adjust the layout of the report temporarily so that theappropriate partner object is displayed in a column. From which cost centerdoes the project use activities?




Exit the line item and cost element reports and go back to the SAP menuwithout saving the data.

a) You are still in the transaction for evaluating project E-9990 in the costelement report Actual/Commitment/Total/Plan in CO Area Currency.

To call up the line item report for all the actual costs displayed, selectthe total value in the Actual column and choose Call Report.

To add an additional column, choose Change Layout... in the lineitem report. In the dialog box, go to the Column Set on the Columns tabpage and select Partner Object. Copy the field to Columns by choosingShow Selected Fields and confirm your selection with Enter.

In the Partner Object column, the cost center and activity types aredisplayed that were used for activity allocation. So far, only costs fromthe cost center 4290 have been allocated to project E-9990.

Hint: Using the Environment menu of the line item report,you can also call up the source document for a line item. Ifother accounting documents have been created (for example,cost accounting documents, profit center documents, financialaccounting documents), you can display these by choosingEnvironment→ Accounting Documents.

To return to the cost element report and the SAP menu, click Backseveral times and confirm the dialog box for exiting the report with Yes.

3. Optional: Evaluate the costs in project E-9990 using the plan-basedhierarchy report Plan/Actual/Commitment/Rem.Plan/Assigned in thecontrolling information system in Project System. Use the graphical reportoutput as the output type when you execute the report. Drill down the dataaccording to the Business Transaction characteristic.




Then analyze how the planned costs for the Standard Costing (Primary)business transaction are distributed over various periods (drill down).Finally, return to the SAP menu.

a) In the Project System menu, choose Project System→ InformationSystem→ Financials→ Costs→ Plan-Based→ Hierarchical→Plan/Actual/Commitment/Rem.Plan/Assigned. On the initial screen,enter E-9990 in the Project field if this has not been defaulted by thesystem. Choose Graphical Report Output as the output type. Executethe report with Execute.

The costs are displayed in the report in accordance with the projectstructure. To drill down the data according to the Business Transactioncharacteristic, double-click the characteristic on the left in thenavigation panel. The cost display is then adjusted accordingly.

b) To analyze the periodic distribution of just the planned primary costs,use your cursor to drag the line containing the business transactionStandard Costing (Primary) from right to left to the characteristicPeriod/Year in the navigation panel. The drilldown list of the costs forthis business transaction is then displayed.

Hint: In the navigation panel, Standard Costing (Primary) isdisplayed as the current value of the Business Transactioncharacteristic. Using Previous Value and Next Value in thenavigation panel, you can choose a different characteristicvalue. Only the costs for this characteristic value are thendisplayed in the drilldown list.

To return to the SAP menu from the report, choose Back andconfirm the dialog box for exiting the report with Yes.



Lesson Summary

You should now be able to:� List various reporting options for project-specific data� Name the functions of the structure information system and cost reports


Unit Summary PLM200

Unit SummaryYou should now be able to:� List various reporting options for project-specific data� Name the functions of the structure information system and cost reports


Unit 4Planning

Unit OverviewDuring the planning phase of a project, dates must be set, resources madeavailable, and consumption of materials and funds planned. This unit provides youwith an overview of the various planning options available using work breakdownstructures, networks, and activities.


� Plan basic dates for WBS elements by means of the project planning board� Name the basic characteristics of scheduling� Explain the concept behind planning internal and external activities by

means of network activities� Distribute work among the workforce� Explain the material planning functions in SAP Project System (SAP PS)� Name the benefits of transferring BOMs� Name different methods for planning project costs and revenues� Plan costs using Easy Cost Planning for a work breakdown structure� Explain the concept behind network costing� Name the sales pricing functions� Carry out project revenue planning using sales orders

Unit ContentsLesson: Date Planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

Exercise 6: Date Planning.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95Lesson: Resource Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102

Exercise 7: Resource Planning.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107Lesson: Material Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .114

Exercise 8: Material Planning... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119Lesson: Cost and Revenue Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .124

Exercise 9: Cost and Revenue Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .131


Unit 4: Planning PLM200

Figure 29: Aspects of Planning


PLM200 Lesson: Date Planning

Lesson: Date Planning

Lesson OverviewThis lesson provides an overview of the date planning options with WBS elementsand networks. The project planning board, which is particularly useful forplanning and evaluating dates, will be used.


� Plan basic dates for WBS elements by means of the project planning board� Name the basic characteristics of scheduling

Business ExampleYou want to plan dates manually for the individual work packages in your projectE-99##. To plan dates for project T-200##, carry out scheduling on the basisof the network or activity information.

Project Planning BoardThe project planning board is a tool in SAP Project System (SAP PS) that enablesyou to process the entire project structure (WBS elements, activities, and thedifferent objects assigned to them; see figure �Objects in the Project PlanningBoard�) in an integrated environment. The project planning board is based onan interactive SAP Gantt chart. The Gantt chart comprises a table and diagramarea, and shows not only the hierarchical structure of your project but also thecorresponding situation with regard to dates. By choosing different points on theproject planning board, you can call up detail screens for objects or change thefield selection and time settings. When you click the right-hand mouse button, allthe functions available at the cursor position are displayed. When using the projectplanning board, you can display or hide specific objects (activities, relationships,or milestones), as well as use different filter, sort, or grouping functions. You canconfigure the project planning board in such a way that it only displays whatyou need.



Figure 30: Objects in the Project Planning Board

You can use the project planning board to create and edit the project definition,WBS elements, activities, relationships, milestones, material components,documents, and PS texts. The project planning board is also particularly useful forplanning dates and resources (work, external processing), as well as determiningand planning costs using activities.



Figure 31: Graphical Displays in the Project Planning Board

In addition to the scheduling overview, you can display the following projectoverviews in the project planning board:

� Capacity overview: The system displays the work centers along with theircapacity load utilization for the activities selected. Green bars indicate thatcapacity is still available, while red bars indicate that the available capacityhas been exceeded.

� Materials overview: The system displays the components (and thecorresponding requirements dates) assigned to the activities selected.

� Cost/revenue overview: The system displays the development of thecosts/revenues for the WBS elements or activities selected.

� Maintenance orders: In a further sub-screen, the system displays themaintenance orders that have been assigned to an activity.

From the project planning board (and the Project Builder), you can call up thehierarchy graphic for WBS elements or the network graphic for activities whereyou can then work interactively.

WBS Date PlanningIn projects without networks, dates can be planned manually for the WBSelements (basic dates). For example, you can use the project planning board toplan basic dates for the WBS elements simply by dragging your mouse. Usingstructure planning, you can plan these dates in a table in the Project Builder in



the detailed data for the WBS elements. To reduce the time and effort involvedin planning, a range of functions are available to support WBS date planning.Basic dates, for instance, can be extrapolated from lower- to higher-level WBSelements, or passed on from higher- to lower-level WBS elements. You can checkthe consistency of date planning within the WBS structure.

In the execution phase, you can also enter actual dates in the project planningboard by dragging your mouse, and then compare them directly with the plannedbasic dates.

Figure 32: Basic Dates for WBS Elements

SchedulingIn projects with networks, you can carry out scheduling to automatically derivethe activity dates and WBS element dates. The scheduling parameters determinehow scheduling is carried out. Networks are always scheduled forwards andbackwards. The scheduling type in the scheduling parameters specifies thedirection in which you begin scheduling. The system determines the earliest datesof the activities by means of forward scheduling, and the latest dates by means ofbackward scheduling. The difference between the earliest and the latest dates ofan activity are referred to as floats. Floats can be zero or negative, which meansthat the activity in question is �critical�.

Using the project planning board you can, for example, select WBS elements andschedule the activities assigned to them. The dates of the assigned activities aresummarized to determine the scheduled dates of the WBS elements (thin time barsin the project planning board) and can be copied as planned basic dates. The datesscheduled in the work breakdown structure can then be extrapolated within theproject structure. In the implementation guide, you can configure the appropriatescheduling parameters or use predefined scheduling scenarios. You can use theproject planning board to change these settings for a particular project.



Figure 33: Scheduling



Exercise 6: Date Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Plan basic dates for WBS elements by means of the project planning board� Carry out scheduling in the project planning board

Business ExamplePlan basic dates for the individual WBS elements manually for investment projectE-99##. In customer project T-200##, planned dates are determined automaticallyby scheduling the activities, and they are displayed in aggregated form in theWBS elements.

Hint: In the following tasks, ## indicates your group number (## = 01,02, and so on).

Task 1: Planning Basic Dates for WBS Elements �Project E-99##Use the project planning board to manually plan basic dates for the WBS elementsin project E-99##.

1. Change project E-99## in the project planning board. In the diagram areaof the project planning board, plan feasible basic dates for all the WBSelements (apart from E-99## Elevator Gr##, E-99##-1 Engineering, andE-99##-2 Procurement) by dragging the time bars using your mouse. Theentire project should last around 6 months.

Determine the dates of the higher-level WBS elements using the ExtrapolateDates function. Save your changes.

2. Optional: The procurement phase of project E-99## has to be postponed by10 days. In the project planning board, shift the planned dates for the entiresubtree of WBS element E-99##-2 Procurement (and also the lower-levelWBS elements) by 10 days.

The assembly and acceptance phases also have to be postponed by 5 daysas a result of the procurement phase being postponed. Use the cursor toshift the time bars for WBS elements E-99##-3 Assembly and E-99##-4Acceptance accordingly.

Determine the new end date for the level-1 WBS element E-99## ElevatorGr## by extrapolating the basic dates. Save the modified date planningfor your project.




Task 2: Scheduling � Project T-200##Use the scheduling function to plan dates for the activities and WBS elements ofproject T-200## in the project planning board.

1. Now plan dates for project T-200##. To do so, open the project in the projectplanning board and display all the dependent objects. Extend the durationof activity 1000 (Engineering of Drawing/Calculation/Design) to 25 days.Also take a look at the fields relevant to scheduling in the detailed screenfor the activity.

Determine the dates of all the objects using the Schedule function. Thescheduling parameters are set in such a way that the basic dates for theWBS elements to which the activities are assigned are also determinedautomatically.

To determine the basic dates for the level-1 WBS element as well, extrapolatethe dates in the project structure afterwards. Save your date planning dataand return to the SAP menu.



Solution 6: Date PlanningTask 1: Planning Basic Dates for WBS Elements �Project E-99##Use the project planning board to manually plan basic dates for the WBS elementsin project E-99##.

1. Change project E-99## in the project planning board. In the diagram areaof the project planning board, plan feasible basic dates for all the WBSelements (apart from E-99## Elevator Gr##, E-99##-1 Engineering, andE-99##-2 Procurement) by dragging the time bars using your mouse. Theentire project should last around 6 months.

Determine the dates of the higher-level WBS elements using the ExtrapolateDates function. Save your changes.

a) Open project E-99## in the project planning board. To do so, choosefor instance SAP Menu→ Accounting→ Project System→ Project→ Project Planning Board→ Change Project and then double-clickproject E-99## Elevator Gr##.

So far, you have only defined a basic start date for the project definition.The date is shown in the diagram.

Under the diagram area, the date is displayed in accordance with theposition of the cursor. You can now use this information to plan datesfor WBS elements graphically and yet, at the same time, for specificdays. To do so, position your cursor in the diagram area on the row ofthe appropriate WBS element so that the required date is displayedbelow. Press and hold down the left-hand mouse button to drag atime bar across to the planned finish date. Use this method to planthe following dates, for example (MM+1 means next month, MM+2the month after next, and so on):

WBS Element From (basic startdate)

To (basic finishdate)

E-99##E-99##-1E-99##-1-1 MM+1/01 MM+1/15E-99##-1-2 MM+1/01 MM+1/25E-99##-2E-99##-2-1 MM+1/10 MM+2/10E-99##-2-2 MM+1/26 MM+3/26




E-99##-2-3 MM+3/01 MM+4/01E-99##-3 MM+4/02 MM+5/15E-99##-4 MM+5/20 MM+6/01

b) To determine the basic dates for the higher-level WBS elements, chooseEdit→ Reconcile Dates→ Extrapolate Dates.

Hint: If you make the appropriate settings, the dates can beextrapolated automatically when you save your data.

To save your date planning, choose Save. If you have made anychanges to the layout of the project planning board, the system promptsyou to save these changes. In this case, confirm that you want to savethe user-dependent data by choosing Yes.

2. Optional: The procurement phase of project E-99## has to be postponed by10 days. In the project planning board, shift the planned dates for the entiresubtree of WBS element E-99##-2 Procurement (and also the lower-levelWBS elements) by 10 days.

The assembly and acceptance phases also have to be postponed by 5 daysas a result of the procurement phase being postponed. Use the cursor toshift the time bars for WBS elements E-99##-3 Assembly and E-99##-4Acceptance accordingly.




Determine the new end date for the level-1 WBS element E-99## ElevatorGr## by extrapolating the basic dates. Save the modified date planningfor your project.

a) Open your project in the project planning board by choosing E-99##Elevator Gr## in the worklist.

Select WBS element E-99##-2 Procurement on the left in the tablearea. To shift the dates of the entire subtree, choose Edit→ ShiftDates→ Subtree.

In the dialog box, enter the new start date (postponed by 10 days) andconfirm your entry with Enter.

b) To shift the planned dates for the assembly phase as well, position thecursor on the time bar of WBS element E-99##-3 Assembly in thediagram area and shift the time bar along 5 days by holding down theleft mouse button. Repeat this procedure for WBS element E-99##-4Acceptance.

Hint: When the cursor appears as a four-way arrow, this meansthat you can move the time bar. When the cursor appears asa two-way arrow, this means that you can extend or shortenthe time bar.

c) To determine the new finish date for the level-1 WBS element E-99##Elevator Gr##, choose Deselect All and then Edit→ ReconcileDates→ Extrapolate Dates. Save your changes by choosing Save.

Task 2: Scheduling � Project T-200##Use the scheduling function to plan dates for the activities and WBS elements ofproject T-200## in the project planning board.

1. Now plan dates for project T-200##. To do so, open the project in the projectplanning board and display all the dependent objects. Extend the durationof activity 1000 (Engineering of Drawing/Calculation/Design) to 25 days.Also take a look at the fields relevant to scheduling in the detailed screenfor the activity.

Determine the dates of all the objects using the Schedule function. Thescheduling parameters are set in such a way that the basic dates for theWBS elements to which the activities are assigned are also determinedautomatically.




To determine the basic dates for the level-1 WBS element as well, extrapolatethe dates in the project structure afterwards. Save your date planning dataand return to the SAP menu.

a) Open project T-200## in the project planning board by choosingT-200## Turbine Gr## in the worklist.

To display all the dependent objects (including the project milestones,for example) select all the objects by choosing Select All and thenShow All Dependent Objects.

Choose activity 1000 (Engineering of Drawing/Calculation/Design).In the detail screen, note the fields Normal Duration, Factory Cal.ID,Work Center, and Control Key on the Internal tab page. All these fieldsare relevant for scheduling. Increase the value in the Normal Durationfield to 25 days. Call up the Dates tab page. In the lower part of thedetail screen, you can see the earliest and latest dates defined for theactivity. In the upper part, you can define constraints to fix dates foractivities. To return to the project planning board, choose Back.

b) The change you have made will also affect the dates defined forsubsequent activities. To determine the new dates of these activities,choose Select All and then Schedule.

Hint: Depending on the scheduling parameters used andthe start date originally planned for your project, the systemdisplays a window at the bottom of the screen containingwarning messages about scheduling. The warning messageStart Date is in the Past: Today Scheduling, for example,means that the system used today's date for scheduling insteadof the original start date. Close the window by choosingOpen/Close Bottom Window.

c) When you do this, the dates for all activities are redefined. Thesystem also extrapolates activity dates for the assigned WBS elements.These dates can also be extrapolated further in the project structure todetermine the duration of the entire project. You can do this by choosingDeselect All and then Edit→ Reconcile Dates→ Extrapolate Dates.

Hint: You can configure the system in such a way that thedates are scheduled and extrapolated automatically when yousave your data.

To save your changes, choose Save. To return to the SAP menu,click Back.



Lesson Summary

You should now be able to:� Plan basic dates for WBS elements by means of the project planning board� Name the basic characteristics of scheduling



Lesson: Resource Planning

Lesson OverviewThis lesson shows you how to use activities to plan internal activities andservices. Planning internal activities involves evaluating capacity requirementsand distributing the work to be carried out among the employees. In the case ofexternally-procured services, purchase requisitions for the purchasing departmentare generated.


� Explain the concept behind planning internal and external activities bymeans of network activities

� Distribute work among the workforce

Business ExampleYou will use the network activities in project T-200## to plan activities that are tobe carried out by employees at your own company and check the availability of theappropriate capacities. You then distribute the planned work among the employees.You also plan services that are to be procured by Purchasing using appropriateactivities in your network and trigger their procurement via Purchasing.

Resource Planning: OverviewYou use activities in a network to plan the resources required for a project. ProjectSystem distinguishes between the following resources:

Internally-processed activities define the work to be carried out by machinesor persons. You can evaluate the capacities of the various work centersinvolved, reschedule these capacities as necessary, and distribute workamong employees.You can use externally-processed activities to define which services arerequired by other companies. External processing is carried out by thePurchasing department.Service activities are also used to procure services externally. Unlikeexternally-processed activities, this activity type enables you to defineservice specifications and value limits for unplanned services rendered bythe service provider. Service processing (including entry and acceptance ofservices performed) is also carried out by the Purchasing department.


PLM200 Lesson: Resource Planning

Figure 34: Resource Planning

Internal ProcessingInternally-processed activities are used as a basis for planning work carried outwithin the company. You must enter work data for an activity so that the systemcan plan capacities for a project and calculate costs for activities. You need tospecify the amount of work involved and the work center that is to perform thework. Work is the output to be provided by machines or personnel in order tocomplete an activity. A work center is the place where an activity is carried out orwork output is produced. Work centers contain data for costing activities. Workcenters also contain the scheduling and capacity data required for scheduling andcapacity planning. You can determine how much of the work center capacityis used for the activities (in the project planning board too, for example). Ifnecessary, you can use the project planning board or the graphical/tabular capacityplanning table to level capacities. You can also distribute the work amongemployees. When you confirm activities during the project execution phase, youconsume capacity requirements and enter actual dates and costs.



Figure 35: Internal Processing

When you distribute work among employees, you assign persons to activities. Todistribute work, you can set up project teams and select HR organizational units,positions, or persons. You can also schedule the personnel who are assigned to thework center for the activity. A project and work center view are available to helpyou distribute work among the employees (see Fig. �Workforce Planning�). Inboth views, you can quickly and easily assign persons to activities and use variousdata (availability of the person from Human Resources, the total work planned forthat person, or the activity data, for example).



Figure 36: Workforce Planning

External ProcessingService procurement via Purchasing is mapped in networks by means of theactivity types external processing and service. If you commission an engineeringoffice to design a machine, for example, you can create an externally-processedactivity (or externally-processed element). When you create an activity such asthis, a purchase requisition is also created that is processed further in Purchasing(see Fig. �External Processing�). You can use data from Purchasing for externalprocessing (a purchasing info record, for example, that contains prices anddelivery times for external processing).

A service activity triggers a similar purchasing process, but can also contain ahierarchy of planned services to be purchased, and value limits for unplannedservices. The �goods receipt� for services involves two steps: entering the serviceand accepting the service.

Control keys are used to define externally-processed activities and serviceactivities (as well as other activity types).



Figure 37: External Processing



Exercise 7: Resource Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Plan capacity requirements for internally-processed activities� Distribute work among the workforce� Generate purchase requisitions for externally-processed activities

Business ExampleIn customer project T-200##, you will use activities to plan resources. In the caseof internally-processed activities, capacity requirements are generated for theassigned work centers. These requirements can be evaluated and, if necessary,leveled. You distribute planned work to individual employees. Purchaserequisitions are generated and passed on to the Purchasing department viaexternally-processed activities.


Task 1: Internal Processing � Project T-200##For the internally-processed activities in project T-200##, check the capacityload utilization for the assigned work centers. Distribute the planned work for anactivity to different employees. This distribution can be used when you cometo record the activities carried out by the employees as a default value for theCross-Application Time Sheet.

1. Change activity 1200 Engineering of Case in project T-200## in the projectplanning board. The activity is now to be processed by employees assignedto work center 2700. Activate the capacity requirements for your project forthe assigned work centers and carry out scheduling again.

Use the capacity overview on the project planning board to check thesituation with regard to capacity for the assigned work centers. Display thecapacity load utilization in this overview in a histogram and then call up anexplanatory legend. Save the project.

2. Use the project view for the distribution of work to employees and profile1302 to assign persons for activity 1200 Engineering of Case in projectT-200##. To do this, choose person 1920+## from the list of proposedpersons (for exercise group 01: 1921; for ## = 02: the person with personnelnumber 1922, and so on). Display the availability of the person you assigned




too. Schedule a total of 60 hours for the activity in the planned period (youmay have to scroll the table to the right). Save the work distribution dataand return to the SAP menu.

Task 2: External Processing � Project T-200##Check the externally-processed activity data in project T-200##. Generate apurchase requisition from this activity.

Optional: Check the purchase requisition data using the appropriate report.

1. To procure an external service, you created activity 1400 (Engineeringof Rotating Blades) in project T-200## as an externally-processedactivity. External processing data was copied from purchasing info record5500000093. In the project planning board, check which vendor has beenproposed for the procurement. Change the activity in such a way that theassociated purchase requisition is generated when you save the project. Saveyour project and return to the SAP menu.

2. Optional: Use Purchase Requisitions for Project in the information systemof Project System to display a list of purchase requisitions for projectT-200##. Then return to the SAP menu.



Solution 7: Resource PlanningTask 1: Internal Processing � Project T-200##For the internally-processed activities in project T-200##, check the capacityload utilization for the assigned work centers. Distribute the planned work for anactivity to different employees. This distribution can be used when you cometo record the activities carried out by the employees as a default value for theCross-Application Time Sheet.

1. Change activity 1200 Engineering of Case in project T-200## in the projectplanning board. The activity is now to be processed by employees assignedto work center 2700. Activate the capacity requirements for your project forthe assigned work centers and carry out scheduling again.




Use the capacity overview on the project planning board to check thesituation with regard to capacity for the assigned work centers. Display thecapacity load utilization in this overview in a histogram and then call up anexplanatory legend. Save the project.

a) Open project T-200## in the project planning board. To do so, firstchoose SAP Menu→ Logistics→ Project System→ Project→ ProjectPlanning Board→ Change Project, and then double-click T-200##Turbine Gr## in the worklist (under Last Projects Processed).

To call up the detail screen for activity 1200 (Engineering of Case),double-click the activity. Enter the new value 2700 in theWork Centerfield and then click Back.

To activate the capacity requirements for your project at the assignedwork centers, choose Select All and then Edit→ Functions→Activate Capacities. Then reschedule your project by choosingSchedule.

b) Call up the capacity overview in the project planning board to analyzethe situation with regard to capacities at the work centers. To do so,choose Capacity Overview. An overview window is displayedin the lower part of the screen.

Hint: The capacity overview shows the situation with regardto the capacities available in the work centers assigned to theproject. Green bars show that the work center�s capacity isnot used up, whereas red bars show that the work center�scapacity has been exceeded. You can also display a histogramshowing the capacity requirements and the available capacityof individual work centers.

To display the capacity load utilization as a histogram, select a workcenter (if possible, one with a red bar) on the left of the capacityoverview and choose Load as Histogram from the context menu(right-click). To display a legend for the capacity overview, chooseDisplay Legend from the context menu.

Close the legend and save your changes by choosing Save. Exit theproject planning board by clicking Back.

2. Use the project view for the distribution of work to employees and profile1302 to assign persons for activity 1200 Engineering of Case in projectT-200##. To do this, choose person 1920+## from the list of proposedpersons (for exercise group 01: 1921; for ## = 02: the person with personnelnumber 1922, and so on). Display the availability of the person you assigned




too. Schedule a total of 60 hours for the activity in the planned period (youmay have to scroll the table to the right). Save the work distribution dataand return to the SAP menu.

a) In the Project System menu, choose Project System→ Resources→Workforce Planning→ Project View. Enter the following data on theselection screen and then choose Execute.

Field Name ValuesProject T-200##

Profile 1302

The Workforce Planning: Project View screen is now displayed. Tocreate the assignment, select activity 1200 Engineering of Case on theleft in the table and choose Create Assignment (bottom left).

The system displays a list of persons who are available in work center2700, which is assigned to activity 1200. In the list, select the personwith personnel number 1920+## (for exercise group 01: 1921; for ## =02, personnel number 1922, and so on) and then click Enter.

The assigned person is displayed under the activity. To display theavailability of that person, select the person on the left in the table andchoose to view the Availability of Personnel.

To distribute the planned work, scroll the table to the right until you canenter hours for the periods (period in white). For some of the periods,enter hours and confirm your entries by clicking Enter. Schedulea total of 60 hours for the person so that the remaining work to bedistributed for the activity (To Be Distributed column) is reduced to170 hours.

Hint: To distribute all of the work, one person is not enoughin our example. We would normally have to schedule morepersons (either persons belonging to the work center inquestion, or persons not belonging to the work center inquestion).

To save your work distribution data, choose Save. To return to theSAP menu, click Back.




Task 2: External Processing � Project T-200##Check the externally-processed activity data in project T-200##. Generate apurchase requisition from this activity.

Optional: Check the purchase requisition data using the appropriate report.

1. To procure an external service, you created activity 1400 (Engineeringof Rotating Blades) in project T-200## as an externally-processedactivity. External processing data was copied from purchasing info record5500000093. In the project planning board, check which vendor has beenproposed for the procurement. Change the activity in such a way that theassociated purchase requisition is generated when you save the project. Saveyour project and return to the SAP menu.

a) Open project T-200## in the project planning board. To do so, firstchoose Project System→ Project→ Project Planning Board→ ChangeProject, and then double-click T-200## Turbine Gr## in the worklist.

To call up the detail screen for activity 1400 (Engineering of RotatingBlades, double-click the activity.

External processing is to be carried out by vendor 1000. With thecurrent settings, the purchase requisition for this activity wouldbe generated when the activity is released. To ensure that thepurchase requisition is generated as soon as you save the project, setRes./Purc.Req. to Immediately.

Return to the overview of the project planning board by clickingBack and save your changes using Save. Exit the project planningboard by clicking Back.

2. Optional: Use Purchase Requisitions for Project in the information systemof Project System to display a list of purchase requisitions for projectT-200##. Then return to the SAP menu.

a) To start the report, choose Project System→ Information System→Material→ Purchase Requisitions→ For Project. In the selectionscreen, enter project T-200## in the Project field and chooseExecute.

The list contains data for the purchase requisition you created earlier.Further purchase requisitions have not yet been created for your project.

Exit the report by clicking Back (twice).



Lesson Summary

You should now be able to:� Explain the concept behind planning internal and external activities by

means of network activities� Distribute work among the workforce



Lesson: Material Planning

Lesson OverviewThis lesson shows you how to plan materials in projects by means of networks. Toplan material requirements, you have to assign material components to activities.This lesson shows you how to use the BOM transfer function so that BOMcomponents can be assigned automatically to activities.


� Explain the material planning functions in SAP Project System (SAP PS)� Name the benefits of transferring BOMs

Business ExampleYou will plan the on-time procurement and consumption of materials formanufacturing the turbine system. To reduce the time and effort involved inmaterial planning, particularly if subsequent changes are made to the productstructure, use the BOM transfer function.

Materials in ProjectsMaterials establish the link between SAP Project System and Sales andDistribution (SD), Materials Management (MM), and Production Planning andControl (PP). A suitable material in a sales document item, for example, can beused to generate project structures automatically (assembly processing). Materialrequirements in projects form the basis for procurement, whether the material isproduced in-house (production) or procured externally (purchasing).


PLM200 Lesson: Material Planning

Figure 38: Materials in Projects

By assigning materials to activities, you can plan the necessary materialrequirements for a project. A distinction is made between stock items andnon-stock items.

The item category stock item is used for materials that are kept in stock (warehousestock, project stock, or sales order stock). Reservations are created for stockitems. Independent requirements (requirements for finished products, salableassemblies, trading goods, and spare parts) trigger requirements planning. Tocover the requirements, you have to determine order quantities and dates, as wellas schedule the corresponding procurement elements. The procurement elementfor requirements planning is a planned order and, for external procurement, apurchase requisition. In addition, the dependent requirements for materialsproduced in-house (in other words, the quantity of components required tomanufacture a finished product or assembly) are determined by exploding the billof material. Planned orders are created at each BOM level to cover requirementswhen a material shortage occurs. Once quantities and dates have been plannedin requirements planning, these planned procurement elements are converted toexact procurement elements: for production, this is the production order and, forexternal procurement, the purchase order.

The non-stock item item category is used for components that are not procuredvia warehouse stock, project stock, or sales order stock, but are instead procureddirectly by means of the network activity. Purchase requisitions for Purchasingare created for these components directly. When the goods are received, they areposted to the activity rather than placed into stock. And non-stock items cannot bemanaged as project stock or sales order stock.



Figure 39: Integration with MM and PP

Transferring BOMsIn projects with low material requirements, you can assign individual materialcomponents to the network activities. You can also assign a material with a BOMto an activity and then explode it step by step.

The BOM transfer function makes it easier for you to assign material componentsin one or more BOMs to network activities. When you assign material componentsusing the BOM transfer function, the system uses the Reference Point field inthe BOM items and activities to establish a logical connection between theindividual BOM items and the network activities. In contrast to when you assignindividual components manually, you can update subsequent changes to the BOMautomatically in the network activity. The BOM transfer function is particularlyuseful for engineering projects involving BOMs that are created during the courseof the project or changed frequently. When the BOM is transferred, assignmentsare made on a project-specific basis and may also be made for different projectnetworks simultaneously. You can assign individual components, individual BOMassemblies, or a multi-level BOM. You can assign components manually withoutreference points when transferring BOMs.



Figure 40: Transferring BOMs



Exercise 8: Material Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Assign material components to activities by transferring BOMs� Analyze material requirements dates in the project planning board

Business ExampleYou want to plan material requirements in customer project T-200##. Theengineering and design department uses CAD systems to map the product structurein the form of bills of material (BOMs). You activate procurement of the materialby assigning material components to project network activities. The materials areassigned automatically by means of the BOM transfer function.


Task: BOM Transfer � Project T-200##Use the BOM transfer tool to assign BOM items to activities for project T-200##(via the common reference points). Use the component overview in the projectplanning board to check that the BOM items have been properly assigned and theplanned requirements dates.

Optional: Call up the material components for your project in the Project Builder.

1. Call up the BOM Transfer tool in the Project System menu. Select projectT-200## and the BOM for material T-20000 in plant 1300 with usage3 (Universal). Use profile 1300 for the selection. Use these selectionparameters to transfer the bill of material. Save the assignments and return tothe SAP menu.

2. Open project T-200## in the project planning board and check that thematerial components have been assigned properly in the ComponentOverview. Choose the General Data and Procurement Parameters tabpages in the detail screen for component T-20210. Then exit the projectplanning board.

3. Optional: Open project T-200## in the Project Builder. Call up theoverview of all the assigned components and the detail screen for componentT-20600. To which activity is this component assigned? Then exit theProject Builder.



Solution 8: Material PlanningTask: BOM Transfer � Project T-200##Use the BOM transfer tool to assign BOM items to activities for project T-200##(via the common reference points). Use the component overview in the projectplanning board to check that the BOM items have been properly assigned and theplanned requirements dates.

Optional: Call up the material components for your project in the Project Builder.

1. Call up the BOM Transfer tool in the Project System menu. Select projectT-200## and the BOM for material T-20000 in plant 1300 with usage3 (Universal). Use profile 1300 for the selection. Use these selectionparameters to transfer the bill of material. Save the assignments and return tothe SAP menu.

a) In the SAP menu, choose for example Logistics→ Project System→Material→ Planning→ Bill of Material Transfer.

In the initial screen, enter the following selection criteria:

Field Name ValuesProject Definition T-200##

Profile 1300

Material T-20000

Plant 1300

BOM Usage 3

To start the transfer, choose Execute.

In the results overview, you will see the components of the (multilevel)BOM that were assigned to the activities in your project because theyhad the same reference points. The components are assigned when yousave your data. Choose Save, and exit the BOM transfer tool byclicking Back.

Hint: Other ways are also available for assigning materialcomponents to activities:

� By copying a template (that is, components have alreadybeen assigned to the other project).

� By assigning components manually using, for example,the Project Builder or project planning board.




2. Open project T-200## in the project planning board and check that thematerial components have been assigned properly in the ComponentOverview. Choose the General Data and Procurement Parameters tabpages in the detail screen for component T-20210. Then exit the projectplanning board.

a) Open project T-200## in the project planning board. To do so, firstchoose Project System→ Project→ Project Planning Board→Change Project, and then double-click T-200## Turbine Gr## inthe worklist.

To check that the material components have been assigned properly,choose Select All and then Component Overview in the projectplanning board. The overview screen displays the assigned componentsalong with their requirements dates.

Hint: You can display additional information about thecomponents, such as the detail screen or a goods receipt/issuelist (GR/GI List), via the context menu (right-click to accessthis).

To call up the detail screen for component T-20210, choose T-20210 inthe component overview.

In the detail screen, call up the General Data tab page. The system notonly displays the requirements date for the component but also thereservation number. Call up the Procurement Parameters tab page. Inaddition to data from the component material master, this tab pagedisplays important data about the quantity and value flow (accountassignment categories, special stock indicator, and consumption postingindicator, for example).

Exit the detail screen for the component and the project planning boardby clicking Back and Back (twice).




3. Optional: Open project T-200## in the Project Builder. Call up theoverview of all the assigned components and the detail screen for componentT-20600. To which activity is this component assigned? Then exit theProject Builder.

a) Call up the Project Builder from the Project System menu: ProjectSystem→ Project→ Project Builder. To open project T-200##,double-click T-200## Turbine Gr## in the worklist.

If necessary, expand the structure so that the assigned materialcomponents are also displayed in the Project Builder structure. Todisplay a list of all the material components that have been assignedto your network, choose the network header in the structure tree andthen choose Component Overview. The system displays a list of allthe assigned components.

To display details for component T-20600, select the row for materialT-20600 in the overview and choose General. The detail screen isdisplayed and the components are highlighted in the structure. MaterialT-20600 is assigned to activity 4000.

Exit the project and the Project Builder by clicking Back and Exit.



Lesson Summary

You should now be able to:� Explain the material planning functions in SAP Project System (SAP PS)� Name the benefits of transferring BOMs



Lesson: Cost and Revenue Planning

Lesson OverviewThis lesson gives you an overview of the different ways for planning costs andrevenues for projects. In particular, you will learn how to use the Easy CostPlanning tool to plan costs for WBS elements and network costing. This lessonalso looks at the Sales Pricing tool, which you can use to determine sales pricesfrom the planned costs for your project, plan revenues, or create customerquotations. You will also be shown how to plan revenues for projects usingbilling plans in sales orders.


� Name different methods for planning project costs and revenues� Plan costs using Easy Cost Planning for a work breakdown structure� Explain the concept behind network costing� Name the sales pricing functions� Carry out project revenue planning using sales orders

Business ExampleYou want to manually plan the material costs, activity allocations, and so on, foryour elevator construction project (investment project E-99##).

The costs for project T-200## are determined automatically by means of networkcosting. Use a general costs activity to plan further project costs. Use sales pricingto plan the revenues for the project on the basis of these planned costs and create acustomer quotation. The sold-to party accepts your quotation for constructing theturbine system. Sales and Distribution will create a sales order that will be used toplan revenues and then carry out billing.

Cost PlanningYou can plan costs for a project in SAP Project System (SAP PS) using twodifferent methods:

� Manual cost planning in the work breakdown structure� Cost planning using activities (network costing)


PLM200 Lesson: Cost and Revenue Planning

Manual planning in the WBS involves:

� Overall planning: The most basic form of cost planning, where the costs forWBS elements are entered manually. You can break down your figuresby fiscal year if you wish.

� Detailed planning of primary costs and activity inputs: This type of planningis based on cost elements and periods.

� Unit costing: For each WBS element, you use a scheme for enteringquantities (materials, internal activities, external activities, variable items,and so on). This type of planning is cost element-based.

� Easy Cost Planning: Easy Cost Planning is a user-friendly method forperforming cost element-based cost planning by means of a quantitystructure. You can then use Execution Services to enter commitment andactual data relating to the planned costs.

In addition to manual planning in the WBS, you can assign different types oforder (internal orders or maintenance orders, for example) to WBS elements thatare flagged as account assignment elements. This assignment can then be usedto display the planned costs of the orders for the project. You can also assignactivities to WBS elements and plan costs using these activities. The benefit of thisplanning method is that it can be copied to a new project and, if parts of the projectare moved, cost planning is moved automatically along with the activities. Inaddition, planning by means of network activities is cost element and period based.

Figure 41: Cost Planning in Projects



Easy Cost Planning is a user-friendly tool that enables you to plan costs for WBSelements. You can access Easy Cost Planning for projects from the ProjectBuilder. You choose a WBS element from the structure and then create costingitems for this WBS element. Cost planning by means of Easy Cost Planning iscost element based. The cost planning periods are determined from the basicstart date of the WBS element. To enter costing items, you can also use planningforms (see Fig. �Easy Cost Planning�). When you do this, characteristics (e.g.work in hours) are valuated (e.g. with 100). The characteristic values from theplanning form are linked to quantities, values, or actions in the costing items (inFig. �Easy Cost Planning�, for example, to the quantity of an internal activity).Once you have transferred the values, the costing items appear under the relevantWBS elements in the structure.

Easy Cost Planning can be used as a simple preliminary costing for projects.The pre-planned costs are then replaced, for instance by a quantity structure ofnetworks/activities. You can also use Easy Cost Planning to create planned datafor the project execution phase. In this case, you can then use Execution Servicesto enter commitment and actual costs for the planned costs. In Customizing, youdefine the plan version in which values planned by Easy Cost Planning are stored.

Figure 42: Easy Cost Planning



When you plan dates and resources in network activities, the system automaticallydetermines the corresponding planned costs as part of network costing. Plannedcosts are determined for the following objects:

� Activity inputs for internally-processed activities (internal activity)� Primary costs for externally-processed activities and service activities

(external service)� Primary costs for general costs activities� Primary costs for material components

Activity elements are costed as if they were activities.

Figure 43: Network Costing

Sales PricingYou can use the sales pricing function to determine sales prices for a customerinquiry on the basis of the project cost plan. When doing so, you can also savedifferent cost estimates and process them later. You can also save sales pricingdata as customer quotations and create more than one quotation. In the standardsystem, document type AP is used for project quotations. As an alternative or inaddition to the above, you can transfer the sales pricing data to a billing plan in theproject so that it can be used for revenue planning.



Figure 44: Sales Pricing

Revenue PlanningThe following methods can be used to plan revenues in your project:

� Manual revenue planning (structure-oriented, or on the basis of revenueelements). The latter of the two is revenue element and period based.

� Revenue planning using PS billing plans. This type of planning is revenueelement and period based.

� Revenue planning using SD documents (sales order items or even quotationitems). This type of planning is revenue element and period based.



Figure 45: Revenue Planning

The �Sales Order and Billing Plan� diagram illustrates how revenues are plannedwith SD documents.

The customer has placed an order for project T-200##. You have agreed asales price of 880,000 euro with the customer. Partial payments are due onceproduction (activity 4000) and assembly (activity 5000) are complete. You enterthis information in the system by defining billing milestones for the activities.

You then create a sales order in the system and a billing plan for the item. Youcopy the billing milestones for activities 4000 and 5000 to the billing plan. Youassign the sales order item to the billing element of the project. This assignmentforms the basis for planning revenues in your project.

In the project execution phase, the locks for the individual items in the billing planare lifted automatically when activities 4000 and 5000 are confirmed. After abilling run, actual project revenues can also be updated in this way automatically(see lesson �Milestone Billing and PS Cash Management�).



Figure 46: Sales Order and Billing Plan



Exercise 9: Cost and Revenue Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Plan costs using Easy Cost Planning for WBS elements� Plan costs using network activities and analyze them in the project planning

board.� Optional: Carry out sales pricing.� Plan revenues for projects using sales documents.� Optional: Analyze costs and revenues with hierarchy reports.

Business ExampleYou will plan costs manually for investment project E-99## using Easy CostPlanning. To facilitate the planning process, planning forms are used that havealready been maintained in the system.

For customer project T-200##, the costs are planned using the quantity structurefor the activities. The quotation is created on the basis of the project cost planningdata. This involves rearranging the planned costs according to cost element oractivity type and copying them to the quotation as items.

The customer accepts your quotation. In SD, a sales order is then created andassigned to project T-200##. In a billing plan for the order item, you store thedates on which payment is due from the customer. You can evaluate the values inthe order as planned project revenue.


Task 1: Easy Cost Planning � Project E-99##Plan costs for WBS elements at level 2 of investment project E-99##. To do so, useEasy Cost Planning and, if necessary, planning forms maintained in the system.

Optional: Analyze the costs using a hierarchy report.

1. Open project E-99## in the Project Builder. Call up Easy Cost Planning andcreate a cost estimate using the proposed costing variant.

Display the item view. Plan costs for WBS elements E-99##-1 Engineering,E-99##-2 Procurement, and E-99##-3 Assembly. To do so, select the relevantWBS element in the costing structure and choose a suitable planning form(for example, display the list of all the planning forms and choose theappropriate planning form for elevators: ZPS101, ZPS102, or ZPS103).




For Engineering (WBS element E-99##-1), use the planning form to plancosts for 100 internal labor hours and additional costs of 6,700 euro.

For WBS element E-99##-2, plan procurement costs for an elevator with alabor capacity 10, elevator location USA, and elevator cabin walls madeof Metal.

For WBS element E-99##-3, use the planning form to plan costs for 120assembly hours.

A planning form does not exist in the system for Acceptance (WBS elementE-99##-4). For this WBS element, plan two items in the item view manually.Use item category E (internal activity) to plan costs for an activity input of10 hours from cost center (resource) 4295 for activity type 1463. Planmaterial costs (item category M) for 10 pieces of the material (resource)B-1000 (Office Material - Folders) from plant 1000. Copy the items toyour cost estimate.

Then return to the Project Builder and save your cost planning data.

2. Optional: Use the hierarchy report Plan/Actual/Commitment/Rem.Plan/As-signed, which is based on the planned costs, in the Project Systeminformation system to analyze the costs that you have planned for projectE-99##. Expand the data according to value categories and period/year.Then exit the report.

Task 2: Cost Planning via Activities � Project T-200##Costs for customer project T-200## are planned by means of the quantity structurefor the project activities. In addition to costs for internal/external activities andmaterials, you now want to plan additional primary costs using a further generalcosts activity and analyze the calculated costs in the project planning board.

Optional: Use a hierarchy report to analyze the planned costs for project T-200##.

1. Open project T-200## in the project planning board. Create a costs activitywith the activity number 1050 and the description Additional Costsfor WBS element T-200##.1 Engineering and Design. Use this activity toplan costs amounting to 4,000 euro for the proposed cost element (466000).

Re-determine the costs for the entire project (with new dates). Analyze theaggregated costs for the level-1 WBS element (T-200## Turbine) using thegraphical cost overview in the project planning board. Save the changes youhave made to your project and return to the SAP menu.

2. Optional: Use the hierarchy report Plan/Actual/Commitment/Rem.Plan/As-signed, which is based on the planned costs, in the Project Systeminformation system to analyze the updated costs for project T-200##.Expand the data according to value categories and period/year. Then exitthe report.




Task 3: Optional: Customer Inquiry and Sales Pricing� Project T-200##Optional: In SD, create a customer inquiry and link the document to projectT-200##. Use the planned costs for the project to create sales pricing data anda customer quotation.

Hint: You normally create the customer inquiry in SD before creatingsuitable project structures in Project System.

1. In Sales in SD, create a customer inquiry. In the initial screen, enter inquirytype IN (Inquiry), sales organization 1000, distribution channel 10, anddivision 00. The sold-to party has the customer number 1600. The inquiryis to be valid for one month from today. Enter an item for material S-1300.Enter Turbine System as the description and order quantity 1.

Assign this inquiry item to project T-200##. To do so, enter WBS elementT-200## on the Account Assignment tab page in the detailed data for thisitem. On the Sales B tab page, enter DIP profile 13000001. This profileis later used to control your sales pricing. Save the inquiry and return tothe SAP menu.

2. Now use the sale pricing data to create a customer quotation. To do so, createsales pricing data for customer project T-200## in the Project Systemmenu. First call up the sales price basis. In this screen, expand all the nodesin the structure and double-click Primary Costs to display details on them.

Then call up the Sales Price screen. Display the conditions for the quotationheader (Project Quotation) and enter a transfer price surcharge of 10 %with condition type HA00.

To conclude, create a corresponding quotation. When doing so, enterQuotation Gr## as the short text for sales pricing. Finally, return tothe SAP menu.




Task 4: Sales Order and Revenue Planning � ProjectT-200##The customer accepts your quotation. Create an appropriate sales order in SD andassign the SD document to project T-200##. Enter different payment dates in abilling plan for the sales order items. Use your project milestones when doingso. Analyze the order values as planned project revenues in the Project Systeminformation system.

1. Create a sales order in SD. Enter the following data: order type PS1, salesorganization 1000, distribution channel 10, and division 00. The sold-toparty number is 1600 with the order number Gr##. The required deliverydate is today +1 year. Enter an item for material T-20000 with anorder quantity of 1.

Hint: When creating the sales order, you can use existing quotationsas a template. In this exercise, however, you will not use a templateto create the sales order.

Assign the order item in the detailed data for the item to WBS elementT-200## (Account Assignment tab page). On the Conditions tab page,change the item sales price manually by increasing the amount for conditiontype PR00 to 880,000 euro.

Then create a billing plan (Billing Plan tab page) for the item. To do so,select all the milestones that are selected via WBS element T-200## andcopy the milestone dates to the billing plan.

Note the dates and values in the billing plan in the following table so that youcan compare them later with the planned revenues in the information system.

Billing Date Billing Value

Return to the item overview and save the sales order. Exit the screen forprocessing sales orders.

2. Optional: Use the hierarchy revenue report (Planned Contribution Margin)in the Project System information system to analyze the planned revenuesfor project T-200## (if necessary, delete the sales order number from theselection screen). Expand the data according to Period/Year and thencompare the displayed data with the dates and values in the billing planfor the sales order item that you noted in the previous step. Then return tothe SAP menu.



Solution 9: Cost and Revenue PlanningTask 1: Easy Cost Planning � Project E-99##Plan costs for WBS elements at level 2 of investment project E-99##. To do so, useEasy Cost Planning and, if necessary, planning forms maintained in the system.

Optional: Analyze the costs using a hierarchy report.

1. Open project E-99## in the Project Builder. Call up Easy Cost Planning andcreate a cost estimate using the proposed costing variant.

Display the item view. Plan costs for WBS elements E-99##-1 Engineering,E-99##-2 Procurement, and E-99##-3 Assembly. To do so, select the relevantWBS element in the costing structure and choose a suitable planning form(for example, display the list of all the planning forms and choose theappropriate planning form for elevators: ZPS101, ZPS102, or ZPS103).

For Engineering (WBS element E-99##-1), use the planning form to plancosts for 100 internal labor hours and additional costs of 6,700 euro.

For WBS element E-99##-2, plan procurement costs for an elevator with alabor capacity 10, elevator location USA, and elevator cabin walls madeof Metal.

For WBS element E-99##-3, use the planning form to plan costs for 120assembly hours.

A planning form does not exist in the system for Acceptance (WBS elementE-99##-4). For this WBS element, plan two items in the item view manually.Use item category E (internal activity) to plan costs for an activity input of10 hours from cost center (resource) 4295 for activity type 1463. Planmaterial costs (item category M) for 10 pieces of the material (resource)B-1000 (Office Material - Folders) from plant 1000. Copy the items toyour cost estimate.

Then return to the Project Builder and save your cost planning data.

a) Open project E-99## in the Project Builder. To do this, first choose SAPMenu→ Accounting→ Project System→ Project→ Project Builder,and then double-click project E-99## Elevator Gr## in the worklist.To display all of the WBS elements, choose Expand All.

To call up Easy Cost Planning, choose Easy Cost Planning.Confirm the data in the following dialog box by choosing CreateCost Estimate.




The costing structure is displayed on the left of the screen. Plannedvalues do not exist yet. To enable you to analyze details on costingitems at a later stage, choose Show/Hide Item View.

Hint: In the following steps, you can only plan costs for WBSelements that have been flagged as planning elements. If youhave not flagged all of the level 2 WBS elements as planningelements, you first have to return to the Project Builder andselect the Planning Element operative indicator for theseWBS elements.

b) Select WBS element E-99##-1 (Engineering) in the costing structureand choose Choose Planning Form. To display a list of all the planningforms, choose Start Search. In the list, select costing model ZPS101Elevator: Engineering and confirm your selection with Copy.

Then enter the following characteristic values in the planning form:

Field Name ValuesInternal Labor Hours 100

Additional Costs (Euros): 6,700

Choose Confirm. In the costing structure on the left, various items aredisplayed under the WBS element along with the different plannedvalues. Detailed data for the individual items is displayed in the itemview in the bottom right of the screen.

Hint: In the item view, you can add further items manually andcopy them to the cost estimate.

c) Following the same procedure as before, create a cost estimate forWBS element E-99##-2 (Procurement). Select the WBS element inthe costing structure and choose planning form ZPS102 Elevator:Procurement.

Then enter the following characteristic values in the planning form:

Field Name ValuesLabor Capacity 10Elevator Location USAElevator Cabin Walls Metal




Choose Confirm.

d) Following the same procedure as before, create a cost estimate for WBSelement E-99##-3 (Assembly). Select the WBS element in the costingstructure and choose planning form ZPS103 Elevator: Assembly.

Then enter the following characteristic value in the planning form:

Field Name ValuesAssembly Hours 120

Choose Confirm.

e) A predefined planning form does not exist for WBS element E-99##-4(Acceptance). To plan costs for Acceptance, select the WBS elementin the costing structure and choose Append Row on the right in theitem view (if necessary, display by choosing Show/Hide Item View) .Enter the following data in the two empty rows in the item view:

ItemCategory

Resource Plant/Activity Type Quantity

E 4295 1463 10

M B-1000 1000 10

Confirm your entries with Enter and then choose Copy.

Exit Easy Cost Planning and save the changes you have made to yourproject by choosing Back and Save. To exit the Project Builder,choose Exit.




2. Optional: Use the hierarchy report Plan/Actual/Commitment/Rem.Plan/As-signed, which is based on the planned costs, in the Project Systeminformation system to analyze the costs that you have planned for projectE-99##. Expand the data according to value categories and period/year.Then exit the report.

a) To start the hierarchy report, choose Project System→ InformationSystem→ Financials→ Costs→ Plan-Based→ Hierarchical→Plan/Actual/Commitment/Rem.Plan/Assigned. Enter E-99## in theProject field on the selection screen and choose Execute.

The planned costs are displayed sorted according to the individualWBS elements. To carry out an analysis according to value categories,choose Value Category on the left in the navigation panel. To expandthe display according to periods, choose Period/Year in the navigationpanel.

To exit the report, click Back and confirm the dialog box with Yes.

Task 2: Cost Planning via Activities � Project T-200##Costs for customer project T-200## are planned by means of the quantity structurefor the project activities. In addition to costs for internal/external activities andmaterials, you now want to plan additional primary costs using a further generalcosts activity and analyze the calculated costs in the project planning board.

Optional: Use a hierarchy report to analyze the planned costs for project T-200##.

1. Open project T-200## in the project planning board. Create a costs activitywith the activity number 1050 and the description Additional Costsfor WBS element T-200##.1 Engineering and Design. Use this activity toplan costs amounting to 4,000 euro for the proposed cost element (466000).

Re-determine the costs for the entire project (with new dates). Analyze theaggregated costs for the level-1 WBS element (T-200## Turbine) using thegraphical cost overview in the project planning board. Save the changes youhave made to your project and return to the SAP menu.

a) Open project T-200## in the project planning board. To do so, firstchoose Project System→ Project→ Project Planning Board→Change Project, and then double-click T-200## Turbine Gr## inthe worklist.

To create a new activity for WBS element T-200##.1, select WBSelement T-200##.1 Engineering and Design on the left in the table areaof the project planning board and then choose Create.

The system displays a window on the left containing different templates.Double-click activity (not the activity element) Individual Objects→Activity→ Costs. In the project planning board overview, a new




activity has been created under WBS element T-200##.1 Engineeringand Design. Close the template area by choosing Open/CloseLeft-Hand Window.

To call up the detail screen, choose the new activity in the table area.Change the costs activity data as follows:


Text (without caption) Additional Costs

Amount 4,000


To return to the overview in the project planning board, click Back.

b) Calculate the project costs again. To do so, select all the WBS elementsand activities with Select All and then choose Calculate Costs.When doing so, update the project dates by choosing Yes in the dialogbox for cost calculation.

Hint: In the table area of the project planning board, youcan already see the calculated costs for the activities in theProject Cost Plan column. When activities are assigned toWBS elements, the planned costs for the WBS elements aredisplayed in aggregated form, which means that the level-1WBS element shows the planned costs for the entire project.

From the detail screen for activities, you can call up aplanned/actual comparison for the activities. You can run acost report for selected WBS elements via the Extras menu.You can also use the Cost Overview in the project planningboard to carry out a graphical analysis of the distribution of theplanned costs with regard to time.

To analyze the aggregated planned costs of the level-1 WBS elementgraphically, select WBS element T-200## Turbine only on the leftin the table area, and choose Cost Overview. In the lower part ofthe project planning board, the planned costs are displayed in theCost/Revenue Overview and aggregated for the individual periods.

Save the changes you made to your project and exit the project planningboard by choosing Save and Back.




2. Optional: Use the hierarchy report Plan/Actual/Commitment/Rem.Plan/As-signed, which is based on the planned costs, in the Project Systeminformation system to analyze the updated costs for project T-200##.Expand the data according to value categories and period/year. Then exitthe report.

a) To start the hierarchy report, choose Project System→ InformationSystem→ Financials→ Costs→ Plan-Based→ Hierarchical→Plan/Actual/Commitment/Rem.Plan/Assigned. Enter project T-200##in the selection screen and choose Execute.

The planned costs are displayed sorted according to the individualWBS elements. To analyze the individual activities, expand thestructure in the report. To carry out an analysis according to valuecategories, choose Value Category on the left in the navigation panel.To expand the display according to periods, choose Period/Year inthe navigation panel.

To exit the report, click Back and confirm the dialog box with Yes.

Task 3: Optional: Customer Inquiry and Sales Pricing� Project T-200##Optional: In SD, create a customer inquiry and link the document to projectT-200##. Use the planned costs for the project to create sales pricing data anda customer quotation.

Hint: You normally create the customer inquiry in SD before creatingsuitable project structures in Project System.

1. In Sales in SD, create a customer inquiry. In the initial screen, enter inquirytype IN (Inquiry), sales organization 1000, distribution channel 10, anddivision 00. The sold-to party has the customer number 1600. The inquiryis to be valid for one month from today. Enter an item for material S-1300.Enter Turbine System as the description and order quantity 1.




Assign this inquiry item to project T-200##. To do so, enter WBS elementT-200## on the Account Assignment tab page in the detailed data for thisitem. On the Sales B tab page, enter DIP profile 13000001. This profileis later used to control your sales pricing. Save the inquiry and return tothe SAP menu.

a) To create a customer inquiry, choose SAP Menu→ Logistics→ Salesand Distribution→ Sales→ Inquiry→ Create. Enter the followingdata on the initial screen:

Field Name ValuesInquiry Type IN



Division 00

Confirm your entries with Continue.

In the inquiry overview screen, enter the following data:

Field Name ValuesSold-to party 1600

Valid From Today’s date

Valid To Today + 1 month

Material S-1300

Order quantity 1

Description Turbine system


b) To call up the details for this item, choose item number 10. The ItemData screen is now displayed. Choose the Account Assignment tab pageand enter T-200## in theWBS Element field. Now call up the Sales Btab page and enter DIP profile 13000001 for subsequent sales pricing.

To save the inquiry, choose Save. The inquiry number is displayedbelow in the status bar. Return to the SAP menu by clicking Back(twice).

2. Now use the sale pricing data to create a customer quotation. To do so, createsales pricing data for customer project T-200## in the Project Systemmenu. First call up the sales price basis. In this screen, expand all the nodesin the structure and double-click Primary Costs to display details on them.




Then call up the Sales Price screen. Display the conditions for the quotationheader (Project Quotation) and enter a transfer price surcharge of 10 %with condition type HA00.

To conclude, create a corresponding quotation. When doing so, enterQuotation Gr## as the short text for sales pricing. Finally, return tothe SAP menu.

a) To create the sales pricing data, choose SAP Menu→ Logistics→Project System→ Financials→ Planning→ Sales Pricing. In theinitial screen, enter T-200## in the Project Definition field for theselection. Then choose Sales Price Basis.

To expand the structure, first choose Expand All Nodes. Thendouble-click Primary Costs in the structure. If required, move the linebetween the structure and the lower area so that you can see everythingyou need to.

Hint: In the lower area, you can now analyze the plannedamounts, the transfer amounts, and the sales price. You canchange the transfer amount here with regard to the amount,percentage, or quantity and then block it. The Sales Price Basisscreen enables you to process quotation items dynamically.The sales price screen, however, enables you to process thesubsequent quotation.

b) To call up the sales price screen, choose Sales Price. If necessary,expand the structure using Expand All Nodes.

Hint: You can now see the structure of the customer quotation(along with the quotation header, item, and sub-item). Acondition schema is located in the lower part of the screen. Youcan display and, if necessary, change the conditions for theindividual levels in the structure by double-clicking them.

Choose Project Quotation of the Item column in the structure. Differentconditions for the quotation header are displayed in the lower part ofthe screen. To add a new condition, enter the following data in a newrow at the bottom of the table:

CnTy AmountHA00 10




Confirm your entries with Continue. The condition value isdetermined and the sale price is adapted accordingly.

c) To create a quotation, choose Quotation. Confirm the prompt tocreate the quotation by choosing Yes. Next, enter QuotationGr## as the sales pricing short text and confirm this by clickingEnter.

The system creates and then displays a quotation. To return to theSAP menu, click Back twice.

Hint: You can create as much sales pricing data as you requirefor a project. The values determined during sales pricing canalso be updated to a PS billing plan for revenue planningpurposes.

Task 4: Sales Order and Revenue Planning � ProjectT-200##The customer accepts your quotation. Create an appropriate sales order in SD andassign the SD document to project T-200##. Enter different payment dates in abilling plan for the sales order items. Use your project milestones when doingso. Analyze the order values as planned project revenues in the Project Systeminformation system.

1. Create a sales order in SD. Enter the following data: order type PS1, salesorganization 1000, distribution channel 10, and division 00. The sold-toparty number is 1600 with the order number Gr##. The required deliverydate is today +1 year. Enter an item for material T-20000 with anorder quantity of 1.

Hint: When creating the sales order, you can use existing quotationsas a template. In this exercise, however, you will not use a templateto create the sales order.

Assign the order item in the detailed data for the item to WBS elementT-200## (Account Assignment tab page). On the Conditions tab page,change the item sales price manually by increasing the amount for conditiontype PR00 to 880,000 euro.

Then create a billing plan (Billing Plan tab page) for the item. To do so,select all the milestones that are selected via WBS element T-200## andcopy the milestone dates to the billing plan.

Note the dates and values in the billing plan in the following table so that youcan compare them later with the planned revenues in the information system.




Billing Date Billing Value

Return to the item overview and save the sales order. Exit the screen forprocessing sales orders.

a) To create the sales order, choose SAP Menu→ Logistics→ Sales andDistribution→ Sales→ Order→ Create. Enter the following dataon the initial screen:

Field Name ValuesOrder Type PS1



Division 00


In the order overview screen, enter the following data:

Field Name ValuesSold-to party 1600

Purchase Order Number Gr##

Required Delivery Date Today + 1 year

Material T-20000

Order quantity 1

Confirm your entries with Enter. If necessary, confirm the promptto reschedule the invoice date with Enter. Create the order withoutusing quotation templates. To do so, choose Continue in the OpenQuotations for Item dialog box. Confirm the following informationwindows with Continue.

b) To assign the order item to your project, choose item number 10 in theoverview and call up the item data on the Account Assignment tab page.Enter T-200## in the WBS Element field.

Call up the Conditions tab page and increase the amount in thecondition type row (CnTy) PR00 to 880,000 euro. Confirm yourchanges with Continue so that the condition values are adapted.




c) To create a billing plan for the item, call up the Billing Plan tab page.WBS element T-200## is then proposed as the selection criterion forselecting milestones. Confirm the dialog box by clicking Enter. Thetwo milestones for your project are now displayed in a list. ChooseSelect All and then Copy.

Hint: The dates of the two milestones for your project aredisplayed in the Billing Date column. The associated billingvalues are determined from the percentages of the milestonesand the net item value. The milestones are assigned toactivities. If the activity dates are changed, the dates of themilestones also change along with the dates in the billing plan.

When you assign the order item to your project, the billingvalues are copied as planned revenues for the milestone dateperiods to project revenue planning.

Note the dates and billing values of the billing plan in the tableprovided.

To save the sales order, choose Back and then Save. The salesorder number is displayed in the status bar. Finally, return to the SAPmenu. To do so, click Back twice.

2. Optional: Use the hierarchy revenue report (Planned Contribution Margin)in the Project System information system to analyze the planned revenuesfor project T-200## (if necessary, delete the sales order number from theselection screen). Expand the data according to Period/Year and thencompare the displayed data with the dates and values in the billing planfor the sales order item that you noted in the previous step. Then return tothe SAP menu.

a) Choose, for example, SAP Menu→ Logistics→ Project System→ Information System→ Financials→ Revenues and Earnings→Hierarchical→ Planned Contribution Margin. Enter T-200## in theProject Definition field and, if necessary, delete the content of the SalesDocument field. To start the report, choose Execute.

The planned revenues are displayed for billing element T-200## ofthe project. The list is currently sorted by object. To expand the dataaccording to period/year, choose Period/Year in the navigation panel.Compare the periods of the planned revenues and their amounts withthe dates and values in the billing plan for the sales order item.

To exit the report, click Back and then confirm the dialog box withYes.



Lesson Summary

You should now be able to:� Name different methods for planning project costs and revenues� Plan costs using Easy Cost Planning for a work breakdown structure� Explain the concept behind network costing� Name the sales pricing functions� Carry out project revenue planning using sales orders


PLM200 Unit Summary

Unit SummaryYou should now be able to:� Plan basic dates for WBS elements by means of the project planning board� Name the basic characteristics of scheduling� Explain the concept behind planning internal and external activities by

means of network activities� Distribute work among the workforce� Explain the material planning functions in SAP Project System (SAP PS)� Name the benefits of transferring BOMs� Name different methods for planning project costs and revenues� Plan costs using Easy Cost Planning for a work breakdown structure� Explain the concept behind network costing� Name the sales pricing functions� Carry out project revenue planning using sales orders


Unit Summary PLM200


Unit 5Budget

Unit OverviewThe budget is the approved and binding cost framework for a project within aparticular period of time. This unit provides you with an introduction to managingproject budgets with SAP Project System.


� Budget WBS elements� Name the budgeting functions in Project System� Explain how project budgeting can be integrated in investment management

Unit ContentsLesson: Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150

Exercise 10: Budget. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155


Unit 5: Budget PLM200

Lesson: Budget

Lesson OverviewUsing investment project E-99## as an example, this lesson shows you how tomanage the project budget using SAP Project System (SAP PS). It also provides anoverview of how you can integrate SAP PS in the investment management system.


� Budget WBS elements� Name the budgeting functions in Project System� Explain how project budgeting can be integrated in investment management

Business ExampleSince you are the person responsible for investment project E-99##, you assignbudgets to work packages and subtrees of your project. Cost planning for thisproject is used as a basis for assigning the budgets.

Cost Planning and BudgetingWhereas you must estimate your project costs as accurately as possible during theplanning phase, it is in the approval phase that funds are actually allocated in theform of a budget. The budget is the approved cost framework for a project. Itdiffers from the cost plan in that it is binding.


PLM200 Lesson: Budget

Figure 47: Cost Planning and Budgeting

Cost planning is normally carried out before project budgeting and forms thebasis for proposing and approving the budget. Once the planning phase iscomplete, the project is approved and budgeted (assigned an original budget) bya decision-making committee (management, for example). The project managerthen distributes the budget to the individual WBS elements at subordinate levelsaccording to the top-down principle. Since SAP PS supports detailed planningof project costs, some or all of the values defined in planning will most likely beadopted as the budget.

Budgeting Functions: OverviewThe �Budgeting Overview� diagram shows the different budget managementfunctions available in SAP PS.



You can use the Maintain Original Budget transaction to allocate funds for aproject or part of a project. In the budget profile, you can specify whether fundsshould be assigned as overall values or distributed by year. Different budgetingviews are available for displaying different values and checking the consistencyof a budget:

� You can use the Distributed/Distributable views to check the distribution ofthe budget throughout the project structure. The budgets within the projectmust be distributed consistently, that is, the budget of a WBS element mustbe greater than or equal to the budgets of the lower-level WBS elementsassigned directly to it.

� You use the Cumulative/Remaining views to check the distribution of thebudget over fiscal years. The total budget of each WBS element must begreater than or equal to the total of the annual values.

� The planned total is derived from cost planning, and can be transferred tobudgeting in this view.

You can prevent users from maintaining the overall budget for a project byassigning appropriate user statuses. If you lock (freeze) the original budget inthis way, you can only change it by defining supplements, returns, and transfers(referred to collectively as budget updates). You can use the budget releasefunction to make funds available at various points within a fiscal year. You canuse the budget carryforward function to transfer any funds not used up in theprevious fiscal year to the budget of the new fiscal year.

Figure 48: Budgeting Overview



When a project is being executed, various centers use the available funds.Commitments are created, and actual costs are incurred. Together with the costsof apportioned orders, both these forms of fund commitments result in what arereferred to as assigned funds. The funds overview can be regarded as a passiveavailability control, although Project System also provides an active availabilitycontrol. During the availability control, the corresponding assigned funds arecalculated and checked against the budget. If certain tolerance thresholds arebreached (shortfall in budget, budget exceeded), this can trigger various systemreactions (a warning, for example, or an error message). In Customizing for thetolerance limits, you can specify which reaction should be triggered and when.Once activated, availability control is run for each subsequent posting in theproject. During the availability control:

� The budget-bearing WBS elements (called controlling elements) aredetermined.

� The corresponding assigned funds are determined� The assigned funds are checked against the budgets of the controlling

elements. The assigned funds can be found in the budget-bearing WBSelement itself and in the lower-level assignable WBS elements (accountassignment elements).

Figure 49: Assigned Funds and Availability Control



Distributing Budget from an Investment ProgramAn investment program provides you with a complete overview of the plannedcompany investments. You can structure it in hierarchical form according to yourrequirements and assign orders and projects (your investment tasks) to the requiredhierarchy nodes (investment program items). You create investment programswith reference to an approval year in the investment management system. You canuse the Default Plan Value transaction to copy the cost planning data of investmentmeasures (investment projects and investment orders) to the cost planning data ofthe investment program items. You can copy the plan versions of your choice here.The items are budgeted in the investment program. You can use the cost planningdata of the investment program as a proposal for budgeting. The investmentprogram budget values can then be distributed (control parameter: program type)among the investment measures (in our example, the level-1 WBS element of theinvestment project). In SAP PS, you can then distribute the budget values furtherfrom the level-1 WBS element to lower-level WBS elements.

If the investment management system has not been implemented, you can budgetyour projects directly in SAP PS as described earlier.

Figure 50: Budget Distribution from Investment Management



Exercise 10: Budget

Exercise ObjectivesAfter completing this exercise, you will be able to:� Distribute the original budget to WBS elements� Optional: Analyze budgets in the project information system

Business ExampleYou have planned costs for executing investment project E-99##. As the projectmanager, you now use these planned values as default values for distributing thebudget to the WBS elements in your project. You then check the assigned funds(costs of assigned orders, commitments, and actual costs for WBS elements)against these budget values. If any tolerance limits are exceeded, the system canreact in different ways (warning messages, e-mails to project manager, errormessages) when you try to post the data. You do not need to budget the level-3WBS elements. The funds assigned for these WBS elements are checked againstthe funds of the corresponding level-2 WBS elements.


Task: Budget Distribution � Project E-99##You distribute the original budget to the WBS elements at levels 1 and 2 ofinvestment project E-99##.

Optional: Analyze the project budget in the Project System information system

1. In the Project System menu, enter the original budget for the WBS elementsat levels 1 and 2 in project E-99##. To copy the planned values (displayedin the Planned Total view) for level-2 WBS elements as budget values forthese WBS elements, use the Copy View function. Copy the planned totalfor the current fiscal year and, if your project lasts until next year, for thenext fiscal year too. The planned costs should be copied in their entirety(that is, 100 %).




To determine the required budget for the WBS element E-99## at level 1,total up the budget values for the relevant fiscal years. Enter OriginalBudget Gr## as the document text. Save the distribution of the originalbudget and exit the transaction.

Hint: When WBS elements are assigned to an investment programitem, budgeting for these WBS elements can also be carried outin the investment management system. The project manager thendistributes the budget made available in investment management forthese investment measures to lower-level WBS elements in ProjectSystem.

2. Optional: Analyze the original budget for project E-99## in theinformation system of Project System. To do so, use the budget-based reportBudget/Actual/Commitment/Rem.Plan/Assigned.

From the report, call up the screen displaying the line items for the projectbudget values. Temporarily adjust the layout of the line item report in sucha way that the document number and text of the report are also displayed.Then return to the SAP menu.



Solution 10: BudgetTask: Budget Distribution � Project E-99##You distribute the original budget to the WBS elements at levels 1 and 2 ofinvestment project E-99##.

Optional: Analyze the project budget in the Project System information system

1. In the Project System menu, enter the original budget for the WBS elementsat levels 1 and 2 in project E-99##. To copy the planned values (displayedin the Planned Total view) for level-2 WBS elements as budget values forthese WBS elements, use the Copy View function. Copy the planned totalfor the current fiscal year and, if your project lasts until next year, for thenext fiscal year too. The planned costs should be copied in their entirety(that is, 100 %).




To determine the required budget for the WBS element E-99## at level 1,total up the budget values for the relevant fiscal years. Enter OriginalBudget Gr## as the document text. Save the distribution of the originalbudget and exit the transaction.

Hint: When WBS elements are assigned to an investment programitem, budgeting for these WBS elements can also be carried outin the investment management system. The project manager thendistributes the budget made available in investment management forthese investment measures to lower-level WBS elements in ProjectSystem.

a) To distribute the original budget in the project system, choose SAPMenu→ Accounting→ Project System→ Financials→ Budgeting→ Original Budget→ Change. Enter project E-99## in the ProjectDefinition field and choose Original Budget.

Hint: In the table area, you can maintain budget values for theindividual WBS elements in the entry column on the left. Thecolumns on the right show different views (distributed budgetor planned costs). You can define the fiscal year for the budgetdistribution in the Period field above the table area.

Choose the current fiscal year in the Period field. To copy the plannedcosts of the level-2 WBS elements as the original budget, select allWBS elements by choosing Select All. Then select the PlannedTotal column by clicking the column header once. Next, select Edit→Copy View and confirm the dialog box with the proposed percentage of100% by clicking Enter. The corresponding values are displayed inthe Budget column.

If necessary, call up the overview of the next fiscal year and copy thevalues in the Planned Values view to the Budget column in the sameway.

b) To determine the budget for the level-1 WBS element, choose Edit→Total Up and confirm the dialog box with the proposed annual valuesby clicking Enter. The required budget for WBS element E-99## isdisplayed in the Budget column.

To enter a document text, choose Document Text. In the dialog box,enter Original budget Gr## in the Text field and confirm thisby clicking Enter. To save the budget distribution, choose Save.Then click Back to exit the transaction.




2. Optional: Analyze the original budget for project E-99## in theinformation system of Project System. To do so, use the budget-based reportBudget/Actual/Commitment/Rem.Plan/Assigned.

From the report, call up the screen displaying the line items for the projectbudget values. Temporarily adjust the layout of the line item report in sucha way that the document number and text of the report are also displayed.Then return to the SAP menu.

a) To execute the report, choose Project System → InformationSystem → Financials → Costs → Budget-Related →Budget/Actual/Commitment/Assigned. Enter project E-99## in theProject field and choose Execute to start the report. The systemdisplays the original budget for the various WBS elements at levels1 and 2 in your project. Actual costs, commitment costs, and otherassigned values have not been generated for your project.

b) To branch to the line item report, select the column with the budgetvalues by clicking the Budget Overall column header, and then chooseGoto→ Line Items.

Adjust the layout of the line item display by choosing Change Layout....Under Column Set in the dialog box, select the Document Number andText rows and copy them to the list of columns using Show SelectedFields. Then click Enter to confirm your selection.

Additional columns are displayed with the document number and text.To return to the SAP menu, click Back twice, and confirm the dialogboxes with Yes.



Lesson Summary

You should now be able to:� Budget WBS elements� Name the budgeting functions in Project System� Explain how project budgeting can be integrated in investment management


PLM200 Unit Summary

Unit SummaryYou should now be able to:� Budget WBS elements� Name the budgeting functions in Project System� Explain how project budgeting can be integrated in investment management


Unit Summary PLM200


Unit 6Execution

Unit OverviewThe activities and processes planned at the beginning of the project are carriedout during the execution phase. This includes, for example, entering the actualdates for starting and finishing work packages. The activities carried out by theemployees in your company are documented using confirmations. Processes forprocuring materials and services are triggered and the documents that result fromthis are assigned to project structures. Where appropriate, invoices are created andunplanned variances documented. The actual data generated is compared with theplanned dates, costs, and so on. This unit gives you an overview of the functionssupported by SAP Project System that help you execute your projects. Processestypical to the execution phase of projects are also discussed.


� Enter actual dates for WBS elements� Explain the function of confirmations and name different confirmation

methods� Confirm time data by means of CATS (Cross-Application Time Sheet)� Use Execution Services for posting documents� Demonstrate the various ProMan functions� Explain the purchasing process� Explain the role of Claims� Describe the process and benefits of milestone billing� Explain the purpose of PS Cash Management

Unit ContentsLesson: Actual Dates and Confirmations .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .165

Exercise 11: Actual Dates and Confirmations ... . . . . . . . . . . . . . . . . . . . . . . .169Lesson: Assigning Documents, Procurement Processes, and ClaimManagement.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .181

Exercise 12: Execution Services and Procurement Process .. . . . . . . .187


Unit 6: Execution PLM200

Lesson: Milestone Billing and PS Cash Management ... . . . . . . . . . . . . . . . . . .199Exercise 13: Milestone Billing.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .203

Figure 51: Aspects of Project Execution


PLM200 Lesson: Actual Dates and Confirmations

Lesson: Actual Dates and Confirmations

Lesson OverviewThis lesson shows you how to enter actual dates for the different project structuresin SAP Project System (SAP PS) and compare them with the planned dates. Toenter time data for networks, you will use the Cross-Application Time Sheet aswell as other confirmation methods.


� Enter actual dates for WBS elements� Explain the function of confirmations and name different confirmation

methods� Confirm time data by means of CATS (Cross-Application Time Sheet)

Business ExampleOnce project E-99## has been budgeted, it is released and ready to be executed.The actual dates are compared with the dates that were originally planned.

You can also start designing and building the turbine system for project T-200##after the order has been received. The employees enter the work carried out forthis project using confirmations.

Actual Dates for WBS ElementsDuring the planning phase, you entered basic dates for WBS elements, for instanceby creating graphical time bars in the project planning board. In the executionphase, you can set actual dates in the same way in the project planing board. Thestatus Partially Released or Released must be set before you can enter actual startand actual end dates for WBS elements. To monitor dates in the project, youcompare the basic dates with the actual dates, that is, you compare the planneddates with the actual dates or forecasted completion dates. You can use the projectplanning board or structure information system for analysis purposes.



Figure 52: Actual Dates for WBS Elements

ConfirmationsConfirmations document the processing status of activities and activity elementsin a network, and enable you to make forecasts as to how the project will progress.Various functions are carried out automatically by means of confirmations, suchas posting actual costs, actual dates, actual labor and, if necessary, changing theactivity status. The �Confirmation Options� diagram shows different methods forentering confirmations.



Figure 53: Confirmation Options

While you use individual confirmations to enter confirmation data for a network,activity, activity element, or capacity split only, you can create confirmations formore than one object in a collective confirmation. You can create individual orcollective confirmations in the SAP system or via the Internet. In the structureinformation system, you can also select more than one activity or activity elementand send them to another user or organizational unit as a confirmation workflow.

You can also use CATS (Cross-Application Time Sheet) to enter time data. Youcan enter data using the appropriate transactions in the SAP system, via theInternet, as well as offline using the �Mobile Time and Travel� solution. You canalso use a Palm Pilot and the Open Project System (Open PS) interface to enterconfirmation data offline, that is, without a direct connection to an SAP system,and then transfer it to the SAP system. You can also import data from other PDCsystems via standardized interfaces and use it to create confirmations.

CATS is a cross-component transaction for entering activities carried out in HumanResources (HR), Project System (PS), Plant Maintenance (PM), Customer Service(CS), Controlling (CO), and external services (MM-SRV). You can use data entryprofiles to define the layout of the Cross-Application Time Sheet yourself. In aworklist, you can display assignments made when the work was distributed amongthe employees as a set of proposals for entering time data. Reports transfer thereleased (and, in some cases, approved) data to the different applications. Theactual time data may be important for various applications simultaneously. In thiscase, the data is transferred to all applications in question.



Figure 54: Cross Application Time Sheet (CATS)

You cannot use CATS to enter confirmations for production orders becauseproduction confirmations deal primarily with yields and scrap quantities. Youcan, however, use CATS to enter hours and assign them to the receiver object�production order� (Order field). When transferred to CO, the hours are posted asan internal activity allocation in the production order.



Exercise 11: Actual Dates andConfirmations

Exercise ObjectivesAfter completing this exercise, you will be able to:� Enter actual dates for WBS elements� Create individual confirmations in the project planning board� Optional: use CATS for entering time data� Analyze the actual data in a cost element report

Business ExampleYou now want to execute investment project E-99##. To do so, release the projectand enter actual dates for starting and finishing work packages (WBS elements).You compare these actual dates with the planned dates in order to see if thereare any delays.

You will also release customer project T-200## once the sales order has beenreceived. The work carried out for the project activities is entered usingconfirmations. This involves determining both actual dates and actual costs for theactivities, which are then displayed in aggregated form in the project structure.

In the information system, the actual data generated during the project executionphase is compared with the original planned values so that the project can betracked and any deviations analyzed.


Task 1: Preparation: Cost Element ReportTo analyze the commitment and actual costs incurred during the execution phasefor projects E-99## and T-200##, use a cost element report.

1. Open a second session (session 2). You will use this session to analyze datain all the project execution exercises. In this session, call up the plan-basedcost element report Actual/Commitment/Total/Plan in CO Area Currencyin the information system in Project System. Select investment projectE-99## and customer project T-200##. The selection is to include boththe current and the following two fiscal years. Save your selection as avariant with the variant name Gr## and meaning Variant Gr##.




Execute the report. Adapt the report options in such a way that furtherfunctions are available via expert mode. Stay in session 2 in this cost elementreport for the following exercises.

Task 2: Actual Dates for WBS Elements � ProjectE-99##Once you have released investment project E-99##, enter actual start and actualend dates in the project planning board for various WBS elements in this project.In the project planning board, compare the actual dates with the planned dates.

1. Switch to session 1 to continue processing the data. In this session, changeproject E-99## in the project planning board. Start by setting the status of allthe objects in this project to Released.

To enter actual dates on the graph in the diagram area of the project planningboard, display the set of actual dates. Use your mouse to create time barsfor the actual dates of all the WBS elements at level three and for WBSelement E-99##-3 Assembly.

Determine the actual dates of the higher-level WBS elements too. To do so,use the Extrapolate Dates function. Why has only an actual start date beenset for the level-1 WBS element E-99## Elevator Gr##?

Save your changes.

Hint: In the following exercise steps, actual project data is updated.For the purpose of the exercises, we will presume that we are alreadywell into the future.

Task 3: Confirming Activities � Project T-200##Once you have released project T-200##, enter confirmations for the projectactivities in the project planning board. In the cost element report, you analyze theactual costs incurred by the confirmations for the activities.

Optional: Use the Cross-Application Time Sheet (CATS) to enter time data forproject T-200##. Transferring this data to Project System generates confirmationsfor activities.

1. Open project T-200## in the project planning board (session 1) and selectthe status Release for all the objects.

In the project planning board, enter final confirmations for activities 1000Engineering of Drawing/Calculation/Design and 1100 Engineering ofRunning Gear. In the confirmations, enter actual start and actual end




dates that are later than the earliest planned dates for the activities. In theconfirmations, use actual labor values that are slightly different to theplanned values.

If necessary, display the actual dates in the project planning board tocompare the confirmed dates with the planned dates. Save the changes andreturn to the SAP menu.

2. Optional: Use CATS classic in the Project System menu to enter timedata. In the initial screen, enter 1301 as the data entry profile together withpersonnel number 1920+## (for exercise group 01: 1921, for ## = 02:personnel number 1922, and so on).

Hint: During resource planning, you assigned the person withpersonnel number 1920+## to activity 1200 Engineering of Casein project T-200## and distributed work to this employee. Thisassignment is displayed along with the planned data in the Worklistin the CATS entry screen.

Navigate in the data entry period until the hours planned in workforceplanning are displayed in theWorklist in individual periods. Copy the accountassignment data in the worklist to the data entry section and enter time datafor certain days. When you are doing this, it is assumed that the relevantperiod in the future has already been reached and that the work for activity1200 has been carried out. Save your time data and return to the SAP menu.

To ensure that the time data you have entered is available in otherapplications, you have to transfer it to the appropriate target applications. Todo so, carry out a cross-component transfer. For the selection criteria, enterpersonnel number 1920+## and Project System as the target application.Before executing this process, ensure that the Test Run indicator is notselected. Then return to the SAP menu.

3. Use the cost element report in session 2 to analyze the actual costs that wereupdated to the activities in project T-200## as a result of the confirmations.Refresh the report data for this.

From the report, call up the screen displaying the line items for the actualcosts. Adjust the layout of the line item report in such a way that thedocument number is also displayed in an appropriate column. Call up asource document for one of the line items. Then return to the cost elementreport.



Solution 11: Actual Dates andConfirmationsTask 1: Preparation: Cost Element ReportTo analyze the commitment and actual costs incurred during the execution phasefor projects E-99## and T-200##, use a cost element report.

1. Open a second session (session 2). You will use this session to analyze datain all the project execution exercises. In this session, call up the plan-basedcost element report Actual/Commitment/Total/Plan in CO Area Currencyin the information system in Project System. Select investment projectE-99## and customer project T-200##. The selection is to include boththe current and the following two fiscal years. Save your selection as avariant with the variant name Gr## and meaning Variant Gr##.

Execute the report. Adapt the report options in such a way that furtherfunctions are available via expert mode. Stay in session 2 in this cost elementreport for the following exercises.

a) To create a new session, choose Create New Session. In session2, call up the cost element report by choosing (for example) SAPMenu → Accounting→ Project System→ Information System→ Financials→ Costs→ Plan-Based → By Cost Element→Actual/Commitment/Total/Plan in CO Currency. Enter the followingdata in the selection screen:

Field Name ValuesProject E-99##

Plan Version 0

To Fiscal Year Current year + 2 years


To select project T-200##, click the Multiple Selection icon onthe far right in the Project row.

In the dialog box containing the list of single values, enter projectT-200## and confirm your selection by choosing Copy.

Before you execute the report, create a variant for your selection bychoosing Save as Variant... Now enter the following data:




Field Name ValuesVariant Name Gr##

Description Variant Gr##

To save the variant, choose Save.

b) To start the report, choose Execute.

Hint: In the Variation area on the left, you can choose theobject whose costs you want to evaluate on the right. Thereport may already display commitment costs that arose as aresult of the purchase requisition for activity 1400 (Engineeringof Rotating Blades).

To adapt report options, choose Options/Office Integration. In thedialog box, select the Expert Mode indicator under General Settingsand confirm your settings by clicking Enter.

In expert mode, you can refresh the selected data in the followingexercises by choosing Report→ Refresh. To do so, leave the reportopen in session 2.

Task 2: Actual Dates for WBS Elements � ProjectE-99##Once you have released investment project E-99##, enter actual start and actualend dates in the project planning board for various WBS elements in this project.In the project planning board, compare the actual dates with the planned dates.

1. Switch to session 1 to continue processing the data. In this session, changeproject E-99## in the project planning board. Start by setting the status of allthe objects in this project to Released.

To enter actual dates on the graph in the diagram area of the project planningboard, display the set of actual dates. Use your mouse to create time barsfor the actual dates of all the WBS elements at level three and for WBSelement E-99##-3 Assembly.

Determine the actual dates of the higher-level WBS elements too. To do so,use the Extrapolate Dates function. Why has only an actual start date beenset for the level-1 WBS element E-99## Elevator Gr##?




Save your changes.

Hint: In the following exercise steps, actual project data is updated.For the purpose of the exercises, we will presume that we are alreadywell into the future.

a) To change project E-99## in the project planning board, first choose(for example) SAP Menu→ Accounting→ Project System→ Project→ Project Planning Board→ Change Project, and then double-clickE-99## Elevator Gr## in the worklist.

Hint: In the diagram area of the project planning board,only the planned basic project dates are currently displayed.According to the schedule, the project will last for anothersix months or so.

To release all objects, choose Select All and then Edit→ Status→ Release.

b) To ensure that actual dates are also displayed and can be entered fromnow on in the diagram area, choose Set of Dates/View. In the dialogbox, also select the Actual Dates indicator and confirm your entrywith Enter.

To enter actual dates for WBS element E-99##-1-1 ElectricalEngineering at level 3, position your cursor in the diagram area justbelow the basic date bar for this WBS element. Keeping the left mousebutton down, drag a time bar from the actual start date to the actual enddate. Set the actual start and actual end dates so that they are later thanthe planned dates. To help you, the relevant date is always displayedunder the diagram area according to the position of the cursor. In thedialog box, choose Actual Dates as the set of dates.

A time bar for the actual dates is now displayed under the time barfor the basic dates of the WBS element so that you can compare thedates with each other.

Following the same procedure as before, enter actual dates for thefollowing WBS elements:

E-99##-1-2 Mechanical EngineeringE-99##-2-1 Procurement MotorE-99##-2-2 Procurement CabinE-99##-2-3 Procurement EquipmentE-99##-3 Assembly




c) To determine the actual dates of the higher-level WBS elements, chooseDeselect All and then Edit→ Reconcile Dates→ Extrapolate Dates.

In the dialog box, choose Actual Dates as the set of dates.

Only an actual start date is displayed for the level-1 WBS elementE-99## Elevator Gr## because not all of the lower-level WBS elementshave been assigned an actual end date. You have not yet entered anyactual dates for WBS element E-99##-4 Acceptance.

Save your changes. Confirm that you want to save the user-specificdata with Yes.

Task 3: Confirming Activities � Project T-200##Once you have released project T-200##, enter confirmations for the projectactivities in the project planning board. In the cost element report, you analyze theactual costs incurred by the confirmations for the activities.

Optional: Use the Cross-Application Time Sheet (CATS) to enter time data forproject T-200##. Transferring this data to Project System generates confirmationsfor activities.

1. Open project T-200## in the project planning board (session 1) and selectthe status Release for all the objects.

In the project planning board, enter final confirmations for activities 1000Engineering of Drawing/Calculation/Design and 1100 Engineering ofRunning Gear. In the confirmations, enter actual start and actual enddates that are later than the earliest planned dates for the activities. In theconfirmations, use actual labor values that are slightly different to theplanned values.




If necessary, display the actual dates in the project planning board tocompare the confirmed dates with the planned dates. Save the changes andreturn to the SAP menu.

a) You are in the initial screen for the project planning board (session1). To open project T-200##, double-click T-200## Turbine Gr##in the worklist.

To release all objects in the project planning board, choose SelectAll and then Edit→ Status→ Release.

b) Holding down the CTRL key, select activities 1000 Engineering ofDrawing/Calculation/Design and 1100 Engineering of Running Gearin the table area of the project planning board. To enter confirmations,choose Confirm Activity.

In the detail screen of the confirmation for activity 1000, enter thefollowing data:

Field ValuesActual Start Earliest scheduled

start date

Actual Finish 7 days later than theearliest finish date

Actual Work More than the plannedwork


To call up the confirmation for activity 1100, choose NextOperation. In the detail screen for the confirmation, enter data in thesame way as before and then click Back.

If the confirmed dates are not shown in the diagram area, choose Setof Dates/View. In the dialog box, also select the Actual Dates indicatorand confirm your entry with Enter.

To save your changes, click Save. To return to the SAP menu,click Back.




2. Optional: Use CATS classic in the Project System menu to enter timedata. In the initial screen, enter 1301 as the data entry profile together withpersonnel number 1920+## (for exercise group 01: 1921, for ## = 02:personnel number 1922, and so on).

Hint: During resource planning, you assigned the person withpersonnel number 1920+## to activity 1200 Engineering of Casein project T-200## and distributed work to this employee. Thisassignment is displayed along with the planned data in the Worklistin the CATS entry screen.

Navigate in the data entry period until the hours planned in workforceplanning are displayed in theWorklist in individual periods. Copy the accountassignment data in the worklist to the data entry section and enter time datafor certain days. When you are doing this, it is assumed that the relevantperiod in the future has already been reached and that the work for activity1200 has been carried out. Save your time data and return to the SAP menu.

To ensure that the time data you have entered is available in otherapplications, you have to transfer it to the appropriate target applications. Todo so, carry out a cross-component transfer. For the selection criteria, enterpersonnel number 1920+## and Project System as the target application.Before executing this process, ensure that the Test Run indicator is notselected. Then return to the SAP menu.

a) In the Project System menu, choose Project System→ Progress→Confirmation→ Time Sheet→ CATS Classic→ Record WorkingTimes. In the initial screen, enter the following data (1920 + ## standsis exercise group 01 for 1921, for ## = 02 for personnel number 1922,and so on):

Field Name ValuesData Entry Profile 1301

Key Date 1st of next month

Personnel Number 1920+##

Click Enter to confirm your entries, and then choose Enter Times.

The system now displays the screen for entering data in the time sheet.In the Worklist, you can see activity 1200 Engineering of Case ofproject T-200## with a total of 60 hours, which you distributed to your




group's personnel number when distributing the work. If no distributedhours are displayed in the data entry period fields, you may have tochange the data entry period. To do so, choose Next Screen.

Hint: When you distributed work among the employees, 60hours were distributed in the �Weeks� period pattern. In CATS,these planned hours are set for the first day of the week. Youcan use the data entry profile to define whether the plannedhours are also copied to the data entry section or whether justthe working days can be entered.

To copy the data from the worklist to the data entry section, selectthe row with activity 1200 in the worklist and choose Copy Row.Then enter hours for different days in the row for activity 1200. Therequired hours from Personnel Time Management (row ) should notbe exceeded. Save the data you have just entered by clicking Saveand exit CATS by clicking Back.

Hint: Before transferring data to the target application, younormally have to release the time data you have entered andhave it authorized by a superior. In data entry profile 1301,however, the system has been set in such a way that:

1. The data is released automatically when you save2. Authorization is not required

b) To transfer the time data to the project system, choose Project System→ Progress→ Confirmation→ Time Sheet → Transfer→ AllComponents. Under Selection, enter 1920+## (1920 + ## for exercisegroup 01 again for 1921, for ## = 02 for personnel number 1922, andso on) in the Personnel Number field. Activate the Project Systemindicator to select the Target Components and deactivate the Test Runindicator under Control Parameters. To start the transfer, chooseExecute.

Exit the transfer log and return to the SAP menu by clicking Back.

3. Use the cost element report in session 2 to analyze the actual costs that wereupdated to the activities in project T-200## as a result of the confirmations.Refresh the report data for this.




From the report, call up the screen displaying the line items for the actualcosts. Adjust the layout of the line item report in such a way that thedocument number is also displayed in an appropriate column. Call up asource document for one of the line items. Then return to the cost elementreport.

a) Switch to session 2. In this session, the cost element reportActual/Commitment/Total/Plan in CO Area Currency containing thecost data for projects T-200## and E-99## is already open. To updatethe data, choose Report→ Refresh (the Expert Mode indicator must beactivated in the options).

Hint: When you released project T-200##, material purchaserequisitions were generated automatically. The correspondingcommitment costs are displayed in the report. Actual costs forthe project are also displayed because of the confirmations youentered earlier.

b) To call up the line item report for the actual costs, select the total valuein the Actual column and then choose Call Up Report. To addadditional columns, choose Change Layout... in the line item report.In the dialog box, go to the Column Set on the Columns tab page andselect Document Number. Copy the field to Columns by choosingShow Selected Fields and confirm your selection with Enter.

Hint: A separate document has been written for eachconfirmation. By choosing Environment→ AccountingDocuments, you can not only call up the source document for anactual line item but also the associated accounting documents(cost accounting documents, profit center documents, financialaccounting documents, and so on).

To display a source document, select a line item and chooseEnvironment→ Source Document. The system displays detailedconfirmation data.

To exit the document and the line item report, click Back andBack. Choose Yes in the dialog box to exit the line item list. Stay insession 2 in the cost element report.



Lesson Summary

You should now be able to:� Enter actual dates for WBS elements� Explain the function of confirmations and name different confirmation

methods� Confirm time data by means of CATS (Cross-Application Time Sheet)

Related Information

� For more information on CATS, see the SAP Service Marketplace atservice.sap.com/cats.


PLM200 Lesson: Assigning Documents, Procurement Processes, and Claim Management

Lesson: Assigning Documents, Procurement Processes,and Claim Management

Lesson OverviewThis lesson looks at a number of business transactions and processes thatare typically carried out during the project execution phase and that result incommitments and costs being updated to projects. Claim Management in SAPProject System (SAP PS) enables you to document variances from the projectplan, and to trigger and monitor follow-up actions.


� Use Execution Services for posting documents� Demonstrate the various ProMan functions� Explain the purchasing process� Explain the role of Claims

Business ExampleIn the project execution phase, commitments and actual costs are updated to yourprojects by assigning various documents. You will use Execution Services topost internal activity allocations and purchase requisitions, and get to know theprocurement process carried out by Purchasing in your company. You will createclaims to document unplanned variances from the original project plan, planvariance costs and, if necessary, trigger the appropriate measures.

Assigning DocumentsThe diagram �CO Assignment of Documents� shows business transactions thatestablish a connection to WBS elements or activities via an assignment. Byassigning the appropriate documents, the resulting commitment or actual costs areposted directly to a WBS element or the network/activity.

During the project planning phase, these costs were planned accordingly. You can,for example, plan the costs for purchase requisitions, purchase orders, and goodsreceipts at network or activity level using externally-processed activities, serviceactivities, or material components that are procured directly, withdraw stock fromthe warehouse using the appropriate stock items, post invoices using cost activitiesand costs arising as a result of confirmations using internally-processed activities.



Actual costs and revenues arising from purchase requisitions, purchase orders,goods receipts, activity allocations, or invoices for WBS elements match thevalues of the primary costs, activity input, or revenue planning data for the workbreakdown structure.

Figure 55: CO Assignment of Documents

You can use Execution Services to enter commitment and actual costs for itemsthat you planned using Easy Cost Planning. The following postings are possible:

� Internal activity allocation� Direct process allocation (for processes)� Reservations (for material items)� Goods issues (for material items)� Purchase requisition (for material items, external activity items, service

items, variable items)� Purchase order (for material items, external activity items, service items,

variable items)



Figure 56: Execution Services

Procurement ProcessesPurchase requisitions are generated by the network for externally-processedactivities, service activities, and materials that are procured externally. Thesepurchase requisitions are passed on to the Purchasing department for furtherprocessing. The purchasing process involves issuing a request for quotation tovendors (if applicable), entering these quotations in the system, selecting vendors,converting the purchase requisitions to purchase orders, and monitoring the ordersuntil the goods and invoices are received.

A service activity triggers a similar purchasing process, but can also contain ahierarchy of planned services to be purchased, and value limits for unplannedservices. The �goods receipt� for services involves two steps: entering servicesperformed, and accepting them.

The purchase requisition results in purchase requisition commitments for theaccount assignment object (activity or WBS element). When the purchaserequisition is converted to a purchase order, this results in purchase ordercommitments for the account assignment object (this is a different value typethan purchase requisition commitments). Depending on the account assignmentcategory of the purchase order, actual costs are posted when the goods or invoice isreceived (valuated, non-valuated goods receipt). They are passed on to the networkactivity or WBS element depending on the account assignment. Instead of havingthe network generate purchase requisitions automatically, you can create purchaserequisitions and purchase orders manually, and assign them to WBS elements.



Figure 57: The Purchasing Process

ProMan is a tool that helps you carry out project-oriented procurement. ProManenables you to access data in SAP PS, purchasing, production, requirementsplanning, and inventory management. Procurement-related information fromthese components is structured in ProMan and displayed in summarized form.Individual steps in the procurement process, such as creating reservations,purchase requisitions, and purchase orders or entering deliveries from projects,goods issues, or balance sheet transfers can be carried out directly in ProMan.The status and progress of internal and external procurement processes can bemonitored and controlled within a single transaction.

Hint: Ensuring that components or documents are displayed in ProManrequires an assignment or account assignment for an object of the project(WBS element or network activity, for example). The link can also bemade manually, such as the manual assignment of a production order ormanual account assignment of a purchase requisition. Requirements thatare not related to the project and that relate instead to the make-to-stockinventory cannot be evaluated in ProMan.



Figure 58: Project-Oriented Procurement - ProMan

Claim ManagementWhile your project is being executed, you may experience delivery problems,price variations, unforeseeable bottlenecks, and so on, that result in variancesfrom the project plan. If this occurs, you must document these variances andclarify which contractual partners are responsible. Claim Management ensuresthat a claim arising from variances is prepared and lodged against the contractualpartners at the right time or deflected if it is in the other direction. You can usethe Claim notification category in Claim Management in Project System todocument any variances from your project plan, identify the party responsible,and initiate follow-up activities. Variances often incur increased costs. You canenter the costs that may have occurred either when creating the claim or at a laterstage (for example, when more detailed information about the claim becomesavailable). You can create claims either in the SAP system or via the Internet.The Claim Overview and Claim Hierarchy in SAP PS provide two reports thatyou can use to evaluate claims.



Figure 59: Claims

You can integrate the data for estimated variance costs from claims in cost planningfor the relevant projects. The system automatically creates an internal order forthis purpose as a cost collector when you save the claim and then transfers theestimated costs to the cost collector. The internal order is automatically assignedto the same WBS element as the claim and can be evaluated in the appropriateSAP PS reports.



Exercise 12: Execution Services andProcurement Process

Exercise ObjectivesAfter completing this exercise, you will be able to:� Use Execution Services for posting documents� Analyze commitments in a cost element report� Optional: Analyze project-related procurement processes in ProMan

Business ExampleFor investment project E-99##, you will use the Execution Services function topost different documents for the costs planned with Easy Cost Planning. Whenyou assign the documents to the WBS elements in the project, commitment andactual costs are charged to the project. In the information system of ProjectSystem, you can monitor the costs incurred.

To process customer project T-200##, you procure the required external servicesand material components via Purchasing. An MRP planning run is used todetermine secondary requirements for the in-house production of materials. Youtrack the status of the procurement process and the changes to the costs in ProjectSystem.


Task 1: Execution Services � Project E-99##Using Execution Services, post different documents for the costs that you haveplanned with Easy Cost Planning for project E-99##. Analyze the commitmentand actual costs for project E-99## in the cost element report.

1. Open project E-99##, which has been released, in Project Builder in session1 and expand the entire structure. Call up Easy Cost Planning and display theitem view and Execution Services.

First post an internal activity allocation for the two planned internal activitiesfor WBS element E-99##-1 Engineering. Use the planned data when postingthe document. Then display a list of documents that have been posted.

For WBS element E-99##-2 Procurement, use the appropriate ExecutionService to create a purchase requisition for the planned material components.The delivery date is to be around 14 days from now. Update the list ofdocuments that have been posted to display the purchase requisition.




Return to the Project Builder and exit the function for processing yourproject.

2. Use cost element report Actual/Commitment/Total/Plan in CO Area Currencyin session 2 to analyze the commitment costs for project E-99## incurred bythe purchase requisition for WBS element E-99##-2 Procurement. Refreshthe report data for this.

From the report, call up the screen displaying the line items for thecommitment costs. Call up the source document for the line item. Thenreturn to the cost element report.

Task 2: Optional: ProMan � Project T-200##Optional: Use ProMan to gain an overview of the current status of procurementfor material components in project T-200##.

1. Switch to session 1. In this session, open ProMan (Project-OrientedProcurement) in the Project System menu and select project T-200##before executing it. Expand the entire project structure in ProMan. UseProMan to answer the following questions:

Which orders/documents exist for level-1 WBS element T-200## Turbine?

Take a look at the details for material component T-20600, which is assignedto activity 4000 Production of Running Gear, Bearing, Valves. What isthe requirements quantity that you have planned for material componentT-20600?

Return to the SAP menu.

Task 3: Purchasing Process (to be carried out byinstructor)In this task, external activities and material components required for customerproject T-200## are purchased from vendors. The instructor will adopt the rolesof MRP and Purchasing and will enter the appropriate goods receipts for thepurchase order.

Caution: This task is carried out by the instructor and not the courseparticipants.

1. Instructor only: Material T-20600 (Bearing (Complete) is manufactured inhouse. In session 1, carry out an online MRP planning run for all materialsin plant 1300 to determine secondary requirements and, if necessary, toalso determine planning procurement elements for production. For the




planning run, enter plant 1300, processing key NETCH as the parametersand 1 (Purchase Requisitions) as the key for creating purchase requisitions.Then return to the SAP menu.

2. Instructor only: Use the report Purchase Requisitions for Project toautomatically assign vendor 1000 to the purchase requisitions for thecustomer projects to which no vendor has been assigned. Save the changesand return to the SAP menu.

Hint: To make matters simpler, we will assume that all goods to beprocured externally will be procured from one vendor. You will notneed to issue a request for quotation either.

3. Instructor only: In Purchasing, create a purchase order for the vendorusing Via Requisition Assignment List. When doing so, select all the openpurchase requisitions for vendor 1000 and purchasing organization 1000and copy them to a purchase order (order type NB). Save this purchase order,note the purchase order number, and return to the SAP menu.

Purchase order number: ____________________

4. Instructor only: To conclude, enter the goods receipt for the purchaseorder in Inventory Management. To do so, alter the default values for goodsreceipts in such a way that all the items, storage location 0001, plant 1300,and the OK indicator are defaulted. Copy the data from the purchase orderyou created in the previous step and post the goods receipt. Then return tothe SAP menu.



Solution 12: Execution Services andProcurement ProcessTask 1: Execution Services � Project E-99##Using Execution Services, post different documents for the costs that you haveplanned with Easy Cost Planning for project E-99##. Analyze the commitmentand actual costs for project E-99## in the cost element report.

1. Open project E-99##, which has been released, in Project Builder in session1 and expand the entire structure. Call up Easy Cost Planning and display theitem view and Execution Services.

First post an internal activity allocation for the two planned internal activitiesfor WBS element E-99##-1 Engineering. Use the planned data when postingthe document. Then display a list of documents that have been posted.

For WBS element E-99##-2 Procurement, use the appropriate ExecutionService to create a purchase requisition for the planned material components.The delivery date is to be around 14 days from now. Update the list ofdocuments that have been posted to display the purchase requisition.

Return to the Project Builder and exit the function for processing yourproject.

a) Open project E-99## in the Project Builder in session 1. To do this,in session 1 choose for example SAP Menu→ Accounting→ ProjectSystem→ Project→ Project Builder, and then double-click projectE-99## Elevator Gr## in the worklist. To display all of the WBS

elements, choose Expand All. Your project should be assignedthe status REL.

To call up Easy Cost Planning, choose Easy Cost Planning. To displaythe item view and Execution Services, choose Show/Hide Item Viewand then Show Execution Services.

b) In the Costing Structure, select WBS element E-99##-1 (Engineering).To post an internal activity allocation for this WBS element, chooseInternal Activity Allocation from the list of Execution Services.

Hint: The overview of costing items now only shows theitems for item category E along with the planned data. Youcan change this data before making any posting (for example,different quantity or activity type).




To post an internal activity allocation for the planned internal activities,choose Select All and then Post in the overview of costing items.To display a list of posted documents in the upper section of the screen,choose List On/Off (top right).

c) To post a purchase requisition for WBS element Procurement, selectWBS element E-99##-2 (Procurement) in the costing structure. Thenchoose the Execution Service Purchase Requisition.

Hint: The overview of costing items now only displays theitems with item categories M/F/N/V/L along with the planneddata. In our case, these are different material components.

Purchasing data still has to be maintained before material componentscan be procured externally. Define a delivery date for all the items inthe overview. To do so, enter Today + 14 Days for the date in theDelivery Date field. Select all the items with Select All, positionthe cursor on the field with the date you have just entered (not onthe column header) and then choose Fill Column. Confirm yourentries with Enter. All the items now have a delivery date and areselected for transfer to the purchase requisition. To post the purchaserequisition, choose Post. To display the document in the uppersection, choose Refresh.

Hint: If the system outputs a warning or error message (due tomissing data, for example), an error log is written. You can callup this log by choosing Log.

To return to the Project Builder, click Back. Save your project andexit the Project Builder by choosing Save and Exit.

2. Use cost element report Actual/Commitment/Total/Plan in CO Area Currencyin session 2 to analyze the commitment costs for project E-99## incurred bythe purchase requisition for WBS element E-99##-2 Procurement. Refreshthe report data for this.




From the report, call up the screen displaying the line items for thecommitment costs. Call up the source document for the line item. Thenreturn to the cost element report.

a) Switch to session 2. In this session, cost element reportActual/Commitment/Total/Plan in CO Area Currency containing thecost data for projects T-200## and E-99## is already open. To updatethe data, choose Report→ Refresh (the Expert Mode indicator must beset in the report options).

To evaluate just the commitment costs for project E-99##, chooseobject PRO E-99## Elevator Gr## in the navigation panel. Thereport now displays the aggregated costs for investment project E-99##.

b) To call up the line item report for the commitment costs, select the totalvalue in the Commitments column and then choose Call Up Report.

To display the source document, select a row in the list of line itemsand choose Environment→ Source Document.

Hint: The display shows the purchase requisition created usingExecution Services. The items in the purchase requisition areassigned to WBS element E-99##-2 Procurement (AccountAssignment tab page in the detailed data for an item).

Exit the document and line item report with Back. Choose Yes inthe dialog box to exit the line item list. Stay in session 2 in the costelement report.

Task 2: Optional: ProMan � Project T-200##Optional: Use ProMan to gain an overview of the current status of procurementfor material components in project T-200##.

1. Switch to session 1. In this session, open ProMan (Project-OrientedProcurement) in the Project System menu and select project T-200##before executing it. Expand the entire project structure in ProMan. UseProMan to answer the following questions:

Which orders/documents exist for level-1 WBS element T-200## Turbine?

Take a look at the details for material component T-20600, which is assignedto activity 4000 Production of Running Gear, Bearing, Valves. What isthe requirements quantity that you have planned for material componentT-20600?

Return to the SAP menu.




a) To open ProMan, choose the following menu path in ProjectSystem in session 1: Project System→ Material→ Execution→Project-Oriented Procurement (ProMan). In the selection screen, enterT-200## in the Project Definition field and then choose Execute.

Hint: In the main screen of ProMan, the project hierarchyis displayed on the left and the different overviews on theright (Components, Quantities, Dates, and so on) as tabpages. Various documents (purchase requisitions or materialdocuments) and orders (planned or production orders) canbe displayed in the overviews. By choosing the appropriateicons or choosing either the main menu or a context menu, youcan display further data or execute other functions (creatingpurchase requisitions or purchase orders, posting differentgoods movements).

To expand the entire project hierarchy, select project definitionTurbine Gr## T-200## in the project structure and choose ExpandSubtree.

b) Take a look at the documents that have been assigned to the level-1WBS element T-200##. To do so, select the Turbine T-200##row in the project structure and choose Organizational Areas→Orders/Documents from the context menu (right-click). In thesub-screen on the right, the corresponding overview is now displayed.Various purchase requisitions for material components, which are tobe listed in the project stock (stock for WBS element T-200##), areassigned to the WBS element. The material components were assignedto the project activities using the BOM transfer function, and thepurchase requisitions were generated automatically when the activitieswere released.

c) To analyze the details for material component T-20600, choose theBearing (Complete) 0060 T-20600 row in the project structure. Thematerial component is assigned to activity 4000 Production of RunningGear, Bearing, Valves (if necessary, use Search). Next, right-clickto bring up the context menu and choose Organizational Areas→Components. In the sub-screen on the right, the corresponding overviewis now displayed with information about the requirements quantityand requirements date, for example. A requirements quantity of 2was planned for this material during BOM transfer. A correspondingreservation was created automatically when the project was released.

To return to the SAP menu, click Back (twice).




Task 3: Purchasing Process (to be carried out byinstructor)In this task, external activities and material components required for customerproject T-200## are purchased from vendors. The instructor will adopt the rolesof MRP and Purchasing and will enter the appropriate goods receipts for thepurchase order.

Caution: This task is carried out by the instructor and not the courseparticipants.

1. Instructor only: Material T-20600 (Bearing (Complete) is manufactured inhouse. In session 1, carry out an online MRP planning run for all materialsin plant 1300 to determine secondary requirements and, if necessary, toalso determine planning procurement elements for production. For theplanning run, enter plant 1300, processing key NETCH as the parametersand 1 (Purchase Requisitions) as the key for creating purchase requisitions.Then return to the SAP menu.

a) In session 1, choose SAP Menu→ Logistics→ Production→ MRP→ Planning→ Total Planning→ Online. Enter the following dataon the initial screen:

Field Name ValuesPlant 1300

Processing Key NETCH

Create Purchase Requisition 1


To start the planning run, confirm your entries, the warning messages,and the dialog box with Enter.

To return to the SAP menu, click Back (twice).




2. Instructor only: Use the report Purchase Requisitions for Project toautomatically assign vendor 1000 to the purchase requisitions for thecustomer projects to which no vendor has been assigned. Save the changesand return to the SAP menu.

Hint: To make matters simpler, we will assume that all goods to beprocured externally will be procured from one vendor. You will notneed to issue a request for quotation either.

a) In session 1 choose, for example, SAP Menu→ Logistics→ ProjectSystem→ Information System→ Material→ Purchase Requisition→ For Project. In the selection screen, enter projects T-20001 toT-20020 and deselect the Assigned Purchase Requisitions indicator.To display the list of purchase requisitions, choose Execute.

Specify that you want the purchase requisitions to be assignedautomatically to vendors using existing purchasing info records. To doso, choose Edit→ Select→ Select All and then Assign Automatically.

Hint: If more than one purchasing info record exists, thesystem displays a list from which you can select one. Forpurchase requisitions for which no source of supply could bedetermined, you can still make an assignment by choosingAssign Manually.

To save the changes and to return to the SAP menu, choose ChangeRequisitions, confirm the messages issued by the system with Enter,and exit the report with Back.

3. Instructor only: In Purchasing, create a purchase order for the vendorusing Via Requisition Assignment List. When doing so, select all the openpurchase requisitions for vendor 1000 and purchasing organization 1000and copy them to a purchase order (order type NB). Save this purchase order,note the purchase order number, and return to the SAP menu.




Purchase order number: ____________________

a) Choose SAP Menu → Logistics → Materials Management →Purchasing → Purchase Order → Create → Via RequisitionAssignment List. Enter the following data on the initial screen:

Field Name ValuesPurchasing Organization 1000

Vendor 1000


Then choose Execute.

In the assignment overview, select the row Without Outline Agreementand choose Process Assignment. Confirm the proposed data forcreating the purchase order with Enter.

To close the explanatory window in the center part of the screen,choose Close.

Move the line between the document overview and purchase order datato the right so that you can see the list of open purchase requisitions onthe left in its entirety. To copy the purchase requisition data to the newpurchase order, select the Open Requisitions row in the documentoverview and click Adopt.

To save the purchase order, choose Save. Make a note of the numberof the standard purchase order, which is displayed in the status bar.Then click Back twice to return to the SAP menu.

4. Instructor only: To conclude, enter the goods receipt for the purchaseorder in Inventory Management. To do so, alter the default values for goodsreceipts in such a way that all the items, storage location 0001, plant 1300,




and the OK indicator are defaulted. Copy the data from the purchase orderyou created in the previous step and post the goods receipt. Then return tothe SAP menu.

a) To enter the goods receipt choose, for example, SAP Menu→ Logistics→ Materials Management→ Inventory Management→ GoodsMovement→ Goods Receipt→ For Purchase Order→ GR forPurchase Order (MIGO).

To check the default values, and, if necessary, to adapt them, chooseSettings→ Default Values. Enter the following data under GeneralDefault Values:

Field Name ValuesStorage Location 0001

In Plant 1300

Propose the OK Function inFuture

x

Propose All Items x

Next, choose Adopt, and click Enter to confirm the dialog box tochange the default values.

Enter the purchase order number in the field to the right of GoodsReceipt Purchase Order and choose Execute (Enter) to copy thedata.

Finally, choose Post to save the document. To return to the SAPmenu, click Back.



Lesson Summary

You should now be able to:� Use Execution Services for posting documents� Demonstrate the various ProMan functions� Explain the purchasing process� Explain the role of Claims


PLM200 Lesson: Milestone Billing and PS Cash Management

Lesson: Milestone Billing and PS Cash Management

Lesson OverviewThis lesson shows you how to carry out milestone billing to control billingprocesses for sales orders using project milestones. This lesson also providesan overview of PS Cash Management, which you can use to monitor paymentflows in projects.


� Describe the process and benefits of milestone billing� Explain the purpose of PS Cash Management

Business ExampleOnce the most important assembly components have been manufactured for theturbine system, invoices are to be created automatically and the initial actualrevenues updated to project T-200##. To do so, use milestone billing.

Milestone BillingThe starting point for milestone billing is a sales order item with a billing planwhose dates stem from milestones of the assigned project (see �Cost and RevenuePlanning�). If you enter actual dates in the billing milestones (by confirming theassigned activity, for example), the billing lock imposed on the correspondingdate in the billing plan is lifted.



Figure 60: Milestone Billing (1)

The unlocked date of the sales order item is then billed during the next billing run.Like the sales order item, the invoice document is assigned to a WBS element.This means that the actual revenues are posted in the project. The system flags thedate in the billing plan as Fully Processed (billing status C).

Figure 61: Milestone Billing (2)



PS Cash ManagementDuring the course of the project, project costs that affect receipts and expenditures(incoming and outgoing payments) are incurred as a result of purchasing or salesdocuments. To identify early on when payments are due during the project, youhave to plan and monitor payments. The aim of PS Cash Management is tooptimize cashflows to maximize project profits and reduce project costs. The �PSCash Management� diagram shows the sort of questions that those responsible forPS Cash Management should ask in order to monitor payment flows effectively.

Figure 62: PS Cash Management



Exercise 13: Milestone Billing

Exercise ObjectivesAfter completing this exercise, you will be able to:� Carry out milestone billing

Business ExampleWhen further activities in customer project T-200## are confirmed, billingmilestones assigned to the activities are activated. This unlocks the appropriatedates in the sales order billing plan for your project. In SD, a billing programcreates customer invoices for the unblocked dates in the sales order. In the project,the invoices are displayed as revenues for the assigned billing element.


Task: Milestone Billing � Project T-200##You use the structure information system to create a confirmation for activity4000 of project T-200##. In SD, you then create a billing document for the salesorder assigned to your project. Analyze the actual revenues in your project in thestructure information system and cost element report.

1. Two sessions are currently open. Use session 1 for posting your dataand session 2 for analyses with the plan-based cost element reportActual/Commitment/Total/Plan in CO Area Currency. Open a new session(referred to as session 3 from now on). In session 3, open the StructureOverview in the structure information system. Select the data for customerproject T-200##.

In the structure overview, enter an individual confirmation for activity 4000Production of Running Gear, Bearing, Valves. Enter the earliest scheduledactivity dates for the confirmation. Save the confirmation and refresh thestructure overview. An actual finish date, which unblocks the appropriatedate in the sales order billing plan, is displayed for the activity and assignedbilling milestone.

2. Switch to session 1 and create a billing document for the project sales orderin the SD menu (note the sales order number in the structure overview).Execute and then save the billing document. Then return to the SAP menu.

3. Return to the structure overview in session 3 and refresh the report. Forwhich object are the actual revenues displayed?




Call up further details for the actual revenues in project T-200## in the costelement report. To do so, call up session 2 and refresh the report.

Call up the source document for the actual revenues from the line item report.Then return to the cost element report.



Solution 13: Milestone BillingTask: Milestone Billing � Project T-200##You use the structure information system to create a confirmation for activity4000 of project T-200##. In SD, you then create a billing document for the salesorder assigned to your project. Analyze the actual revenues in your project in thestructure information system and cost element report.

1. Two sessions are currently open. Use session 1 for posting your dataand session 2 for analyses with the plan-based cost element reportActual/Commitment/Total/Plan in CO Area Currency. Open a new session(referred to as session 3 from now on). In session 3, open the StructureOverview in the structure information system. Select the data for customerproject T-200##.

In the structure overview, enter an individual confirmation for activity 4000Production of Running Gear, Bearing, Valves. Enter the earliest scheduledactivity dates for the confirmation. Save the confirmation and refresh thestructure overview. An actual finish date, which unblocks the appropriatedate in the sales order billing plan, is displayed for the activity and assignedbilling milestone.

a) To create a new session, choose Create New Session. In session 3,call up the structure overview by choosing SAP Menu→ Logistics→ Project System→ Information System→ Structures→ StructureOverview. In the selection screen, enter project T-200## in theProject field and choose Execute.

Hint: The structure overview displays the various projectelements. The planned and actual costs (that result fromconfirmations and the purchase of services and materials)are aggregated and displayed for the level-1 WBS elementT-200##. When the sales order is assigned, planned revenuesfor the WBS element are also displayed.

The sales order and other sales documents (customer inquiryor customer quotation) or assigned orders (planned ordersor CO orders) are also displayed in the structure overviewunder the level-1 WBS element. You can display objects bydouble-clicking them.

b) To enter an individual confirmation for activity 4000 Production ofRunning Gear, Bearing, Valves, choose Deselect All and then selectactivity 4000 on the left of the structure overview. Next, chooseExtras/Environment→ Confirm→ Individual Confirmation.




Enter the following data in the detail screen for the confirmation:

Field Name ValuesActual Start Same as earliest

scheduled start date

Actual Finish Same as earliestscheduled finish date


Click Save to save the confirmation and return to the structureoverview, and confirm any warning messages with Enter. Refresh thedata in the structure overview by choosing Refresh.

Hint: Actual dates are displayed for activity 4000 and theassigned milestone. This unlocks the billing date in the billingplan of the sales order. A billing document can now be createdin SD.

2. Switch to session 1 and create a billing document for the project sales orderin the SD menu (note the sales order number in the structure overview).Execute and then save the billing document. Then return to the SAP menu.

a) Switch to session 1. In this session, choose SAP Menu→ Logistics→Sales and Distribution→ Billing→ Billing Document→ Create.

In the list of documents to be processed, enter your sales order numberin the Document column.

Hint: You can view the number of your sales order in thestructure overview for project T-200## in session 3. Based onthe document type, your sales order is assigned to the numberrange from 000001 to 199999. Any other sales documents,customer inquiries, and quotations that may be displayed usedifferent number ranges.

To create a billing document, choose Execute. Save the billingdocument with Save. To return to the SAP menu, click Back.

3. Return to the structure overview in session 3 and refresh the report. Forwhich object are the actual revenues displayed?

Call up further details for the actual revenues in project T-200## in the costelement report. To do so, call up session 2 and refresh the report.




Call up the source document for the actual revenues from the line item report.Then return to the cost element report.

a) Switch to session 3. To refresh the structure overview for projectT-200##, choose Refresh. Because the sales order item has beenassigned to billing element T-200## in your project, the actual revenuesfor WBS element T-200## are displayed in the Actual Revenuescolumn.

b) Call up the cost element report in session 2. To evaluate all the costsand revenues for project T-200##, select object PRO T-200##Turbine Gr## in the navigation panel on the left. To refresh the report,choose Report→ Refresh (the Expert Mode indicator must be set inthe report options). Actual project revenues are displayed for revenueelement 800000 Sales Revenues - Domestic.

c) To call up the source document for the actual revenues, select thefield (not the column) with the actual revenues and choose CallUp Report. Then select the document line in the line item report andchoose Environment→ Source Document. The system now displaysthe invoice.

To return to the cost element report, click Back twice and click Yesto confirm that you want to exit the line item list.



Lesson Summary

You should now be able to:� Describe the process and benefits of milestone billing� Explain the purpose of PS Cash Management


PLM200 Unit Summary

Unit SummaryYou should now be able to:� Enter actual dates for WBS elements� Explain the function of confirmations and name different confirmation

methods� Confirm time data by means of CATS (Cross-Application Time Sheet)� Use Execution Services for posting documents� Demonstrate the various ProMan functions� Explain the purchasing process� Explain the role of Claims� Describe the process and benefits of milestone billing� Explain the purpose of PS Cash Management


Unit Summary PLM200


Unit 7Period-End Closing

Unit OverviewPeriod-end closing involves various period-based business activities such asoverhead application, results analysis, and settlement. These activities help youmake sure that all the data that belongs to a period is determined and, whereappropriate, made available to Enterprise Controlling. This unit provides you witha brief introduction to various functions performed as part of period-end closingfor projects.


� Name various period-end closing procedures� Describe the scenarios for settling the two sample projects

Unit ContentsLesson: Period-End Closing and Settlement... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .212

Exercise 14: Period-End Closing.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .217


Unit 7: Period-End Closing PLM200

Lesson: Period-End Closing and Settlement

Lesson OverviewThis lesson provides you with an overview of the various procedures you cancarry out as part of period-end closing for projects. Investment project E-99##and sales project T-200## will be used to illustrate typical settlement scenarios.You will also be introduced to the Schedule Manager as a tool for carrying outperiod-end closing activities.


� Name various period-end closing procedures� Describe the scenarios for settling the two sample projects

Business ExampleAt the end of a period, you have to carry out various period-end closing activitiesfor your projects. First, you run a results analysis for your sales project T-200##after you have calculated the overhead costs, and then settle to a profitabilitysegment. You settle investment project E-99## to an asset under construction(AUC) or to an asset after the overheads have been applied.

Period-End Closing ActivitiesYou carry out period-based business transactions as part of period-end closing.This enables you to make sure that all the data belonging to a period is determinedand that it is made available to Enterprise Controlling. An overview of the mostimportant period-end closing procedures can be seen in the �Period-End ClosingProcedures� diagram.


PLM200 Lesson: Period-End Closing and Settlement

Figure 63: Period-End Closing Procedures

Overhead costing is used to allocate the overhead costs for supplying materials,machines, and labor by means of percentage or quantity-based overheads.Template allocation is another method for allocating overheads. This method doesnot allocate costs, but determines the quantities used by the receiver object. Thecosts are then calculated by valuating the quantities with a price. This enablescosts to be determined according to cause.

Interest calculation plays an important role in long-running, cost-intensiveprojects. In SAP Project System, planned and actual interest calculation can beused to calculate and update interest.

With cost forecasts, you can adjust cost planning to changing circumstancesduring the execution phase of the project. In a cost forecast, the system determinesand valuates the remaining activities on the basis of the planned, forecast, andactual values in the network.

You use the progress analysis to compare the planned and actual progress of yourproject with the results actually achieved.

Results analysis carries out a period valuation of the project results. Data such asstock values, cost of sales, and reserves are calculated here.

Using the �project-related incoming orders� function, the system determines keyfigures for incoming orders and open orders from sales orders assigned to theproject. This enables you to draw conclusions at an early stage regarding theanticipated result of a customer project.



You use project settlement to allocate the costs and revenues in the projects, or theresults analysis data to one or more receivers.

Project SettlementWhen you settle your project, costs and revenues are transferred toFinancial Accounting (G/L account), Asset Accounting (fixed asset), CostAccounting/Profitability Analysis (order, cost center, profitability segment), orProject System (WBS elements, network, activities). Settlement rules determinewhich portions of a sender's costs are allocated to which receiver(s). Settlementrules are stored in the sender objects and contain distribution rules and settlementparameters. They are required in order to settle the project. Typical scenarios forsettling the projects used in this course are shown in the �Settlement Scenarios�diagram.

Figure 64: Settlement Scenarios

The WBS elements for investment project E-99## are settled to assets underconstruction (AUC). The AUC were created automatically when the WBSelements were released (this is controlled by the investment profile). Rulesprescribing settlement to AUC can be generated automatically when the WBSelements are settled for the first time. When the project is technically closed, theWBS elements are settled to an asset master record, and the values are transferredfrom the AUC to the asset.

In sales project T-200##, only the billing element is settled because resultsanalysis is generally carried out at the billing element level. The results analysisdata contains not only the costs and revenues for the billing elements, but also for



all the WBS elements and activities subordinate to the billing elements. Thisbeing the case, only the billing element has a settlement rule. All other objects areassigned the Do not settle settlement profile.

Schedule ManagerThe Schedule Manager is a user-friendly tool that enables you to plan and editall period-end closing actions performed in SAP ERP Central Component. Thetop organizational object in the Schedule Manager is the task list. It contains ahierarchical representation of tasks in the form of a task list from the variousapplications (for example, Financial Accounting, Cost Center Accounting, ProjectSystem). You schedule the tasks in the task list by dragging and dropping them tothe calendar (if you schedule for a point in time in the past, you will be able tostart immediately). The tasks can cover the following functions:

� ABAP reports (Example: Generate Settlement Rules in CollectiveProcessing)

� Transactions (Example: Set Period Lock)� Memory joggers (Example: �Upon completion, inform those involved� note)� Flow definitions

A flow definition is created in the Workflow Builder and comprises individualflow steps. These steps include scheduling programs with variants in job controlin the SAP system and user interactions involving a user being sent informationby e-mail. The flow definition in the �Schedule Manager� diagram shows theoverhead application step followed by the results analysis step followed by thesettlement step. You can view all the information on an active or completed jobthat was scheduled in the Scheduler by calling up a monitor. Any errors that occurcan be displayed in the monitor, investigated and, if necessary, corrected. Whenyou restart the procedure, only the records that contained errors are processed.



Figure 65: Schedule Manager



Exercise 14: Period-End Closing

Exercise ObjectivesAfter completing this exercise, you will be able to:� Evaluate the result of the period-end closing activities carried out for your

projects

Business ExampleAt the beginning of a new fiscal year period, various periodic procedures, suchas overhead application, results analysis and settlement, are normally carried outfor investment and customer projects for the period that has just come to an end.To schedule, execute, and monitor the jobs, which in certain cases may affect allcomponents, you use the Schedule Manager.


Task 1: Period-End Closing � Projects E-99## andT-200## (to be performed by the instructor only)To carry out period-end closing for projects E-99## and T-200## using theSchedule Manager, you have to run a number of periodic procedures. First, youcreate a selection variant, which will be used later on for collective processing,as well as settlement rules and results analysis keys for the customer projects. Inthe Schedule Manager, you create a simple task list and a flow definition in orderto carry out these procedures.

1. Instructor only: Procedures that are performed periodically (such asoverhead calculation, results analysis or settlement) are usually processedcollectively for a large number of projects in the background. The projectsare selected for collective processing by means of a selection variant. Inthe Project System menu, create selection variant PLM200 with which allthe projects in the course, that is T-20001 to T-20020 and E-9901 toE-9920, are selected. If necessary, test the scope of your selection. EnterSelection Variant PLM200 as the attribute. Save the variant andreturn to the SAP menu.

2. Instructor only: You will require results analysis keys and settlement rulesfor analyzing the results and settling the projects. You can either enter thismaster data manually for the WBS elements/activities, or you can derive it incollective processing. Generate settlement rules and results analysis keys




for the customer projects in collective processing. Use selection variantPLM200 and the current period of the current fiscal year. Display the detailsof the objects processed and return to the SAP menu.

3. Instructor only: In the Schedule Manager, all periodic procedures fromthe various components of the SAP system can be executed and monitoredtogether.

In the Schedule Manager, create a flow definition that includes the threeperiodic procedures overhead calculation, results analysis and settlement.To do this, copy the existing flow definition Z-131. Use Z-131-20 andPeriod-End Closing PS PLM200 as the new identification anddescription.

Modify your flow definition in the Workflow Builder by changing the nameto Select Projects PLM200 for the PS Object List Selection listand create a new variant SV-131-20. In this variant, enter your selectionvariant PLM200, the current period, current fiscal year and SelectObjects PLM200, for example, as the description in the attributes. Savethe variant, and go back to the Workflow Builder.

Also change the Check the Objects in the Worklist step by entering your SAPuser name as the message recipient (for example, PLM200-20). Go backto the Workflow Builder graphic and save your flow definition as a localobject. Then activate the flow definition and return to the initial screen ofthe Schedule Manager.

4. Instructor only: In the Schedule Manager, create a new task list with theidentification Z-20. Enter Periodic Procedure PLM200 as thename and save your task list.

Change the task list Z-20 by creating the flow definition Z-131-20 youdefined earlier as a task for the task list. Save your changes and return to theinitial screen of the Schedule Manager.

Hint: A task list usually comprises different flow definitions(for periodic procedures in Financial Accounting, Cost CenterAccounting, and so on). It is also possible to assign individualABAP reports, transactions, memory-joggers, and documents. Thetask list covers all of the periodic procedures in an organization(FI, CO, PS, and so on).

5. Instructor only: In the following step, you will carry out and monitor theperiodic procedures for the investment and customer projects using theSchedule Manager. First, specify the time at which the Period-End Closing




PS PLM200 task is to be executed using Drag&Drop in the daily overview ofthe Schedule Manager. When you schedule the task, use a time earlier thanthe current point in time so that you can start the task immediately.

Use the job monitor to track the progress of the various steps in the task.Refresh the data displayed at regular intervals until you receive a messageabout the Check the Objects in the Worklist express work item.

Then go from the monitor to the object list containing all the objects edited inthe task. Display the legend for the processing status and, where appropriate,object messages on objects that were not processed properly. Now return tothe initial screen of the Schedule Manager.

6. Instructor only: You changed the step Check the Objects in the Worklistin your flow definition so that you will receive a workflow as the personresponsible after the periodic procedure has been completed. Create a newsession to display the appropriate workflow work item in the BusinessWorkplace. Finish processing the worklist if no errors occurred.

Go back to the Schedule Manager session. Refresh the calendar, and checkover the status of your flow in the daily overview. Then return to the SAPmenu.

Task 2: Optional: Evaluate Period-End Closing �Projects E-99## and T-200##Optional: Analyze the changes to the two projects E-99## and T-200## based onthe period-end closing procedures using a cost element report.

1. Use the plan-based cost element report called Actual/Commitment/Total/Planin CO Area Currency to analyze the costs of the two projects E-99## andT-200## following period-end closing.

What changes have been made on the basis of the periodic procedures?



Solution 14: Period-End ClosingTask 1: Period-End Closing � Projects E-99## andT-200## (to be performed by the instructor only)To carry out period-end closing for projects E-99## and T-200## using theSchedule Manager, you have to run a number of periodic procedures. First, youcreate a selection variant, which will be used later on for collective processing,as well as settlement rules and results analysis keys for the customer projects. Inthe Schedule Manager, you create a simple task list and a flow definition in orderto carry out these procedures.

1. Instructor only: Procedures that are performed periodically (such asoverhead calculation, results analysis or settlement) are usually processedcollectively for a large number of projects in the background. The projectsare selected for collective processing by means of a selection variant. Inthe Project System menu, create selection variant PLM200 with which allthe projects in the course, that is T-20001 to T-20020 and E-9901 to




E-9920, are selected. If necessary, test the scope of your selection. EnterSelection Variant PLM200 as the attribute. Save the variant andreturn to the SAP menu.

a) In the SAP menu, choose Accounting→ Project System→ Financials→ Period-End Closing→ Current Settings→ Create Selection Variantfor Collective Processing. On the initial screen, enter PLM200 in theVariant field and choose Create.

To select several projects on the selection screen, click the MultipleSelection icon in the Project row. In the dialog box, choose the tabpage for selecting ranges and enter the following two ranges (for 20participant groups, for example):

Lower Limit Upper LimitE-9901 E-9920

T-20001 T-20020

Then choose Copy.

Test the scope of your selection by choosing Text Selection. Thenumber of project definitions found should be approximately twice thenumber of groups participating in the course. Return to the selectionscreen by choosing Enter.

To enter attributes for your variant, choose Attributes. In theMeaning field, enter Selection Variant PLM200. To save thevariant, choose Save. To return to the SAP menu, click Backtwice.

2. Instructor only: You will require results analysis keys and settlement rulesfor analyzing the results and settling the projects. You can either enter thismaster data manually for the WBS elements/activities, or you can derive it incollective processing. Generate settlement rules and results analysis keys




for the customer projects in collective processing. Use selection variantPLM200 and the current period of the current fiscal year. Display the detailsof the objects processed and return to the SAP menu.

a) In the Project System menu, choose Financials→ Period-End Closing→ Single Functions→ Settlement Rule→ Collective Processing. Enterthe following data on the initial screen:

Field Name ValuesSelection variant PLM200

Period Current month

Fiscal year Current year

Background Processing No

Test Run No

Detail Lists Yes

Choose Execute.

To call up the detail list, choose Next List Level.

Hint: No settlement rules have been generated for theinvestment projects E-99##. Reason: When the investmentprojects were released, assets under construction (AUC) weregenerated for all WBS elements (this was controlled by theinvestment profile). During the first settlement, the systemgenerates an AUC settlement rule internally. When (and onlywhen) the project is technically closed, the WBS elements aresettled to an asset master record, and the values are transferredfrom the AUC to the asset.

In the case of the customer projects, a profitability segmentsettlement rule was generated for billing elements T-200##.At the same time, results analysis key 130001 was assignedfor these WBS elements. No settlement rules were generatedfor any other WBS elements. Instead, a settlement profile130002 (Do not settle) was assigned. Reason: Results analysisat billing element level includes all of the planned and actualvalues of any lower-level WBS elements, orders and activities.Consequently, only the billing element is settled.

To return to the SAP menu, click Back three times.




3. Instructor only: In the Schedule Manager, all periodic procedures fromthe various components of the SAP system can be executed and monitoredtogether.

In the Schedule Manager, create a flow definition that includes the threeperiodic procedures overhead calculation, results analysis and settlement.To do this, copy the existing flow definition Z-131. Use Z-131-20 andPeriod-End Closing PS PLM200 as the new identification anddescription.

Modify your flow definition in the Workflow Builder by changing the nameto Select Projects PLM200 for the PS Object List Selection listand create a new variant SV-131-20. In this variant, enter your selectionvariant PLM200, the current period, current fiscal year and SelectObjects PLM200, for example, as the description in the attributes. Savethe variant, and go back to the Workflow Builder.

Also change the Check the Objects in the Worklist step by entering your SAPuser name as the message recipient (for example, PLM200-20). Go backto the Workflow Builder graphic and save your flow definition as a localobject. Then activate the flow definition and return to the initial screen ofthe Schedule Manager.

a) Call up the Schedule Manager by choosing, for example, ProjectSystem→ Financials→ Period-End Closing→ Schedule Manager.To make the data on the screen easier to read, close the window withthe user notes by choosing User Notes Off. Choose Extras→ FlowDefinition→ Edit Flow Definition.

In the dialog box, enter Z-131 in the Flow Definition field and chooseCopy.

Enter the following data in the dialog box:

Field Name ValuesFlow Definition Z-131-20

Description Period-End Closing PSPLM200

Confirm your entries with Enter.

You can close the dialog box containing the legend by clicking .You can now use the Workflow Builder to edit your periodic proceduresgraphically.

b) To adjust the object selection, double-click the PS Object ListSelection step in the center of the work area.




Enter Select Projects PLM200 as the new name for this step.To create a new variant for the selection, enter SV-131-20 in theVariant field and choose Create Variant. In the dialog box thatopens up, choose to create the variant for all selection screens andthen click Continue.

Enter the following data:

Field Name ValuesSelection variant PLM200

Period Current month

Fiscal year Current year

To enter attributes for your variant, choose Attributes. In theMeaning field, enter Select Objects PLM200.

Hint: You can also define selection variables for individualselection objects (such as period, fiscal year) on this screen.Advantage: The advantage of this is that once defined, theprocess remains unchanged. The system merely assignsdifferent values to the selection variables using table TVARV(for example, modified periods or fiscal years).

To save the variant, choose Save. To return to the graphic overviewin the Workflow Builder, click Back twice.

c) To enable your SAP user to be informed later on once the periodicprocedure has been completed, double-click Check the Objects inthe Worklist in the center of the work area and enter your user (forexample, PLM200-20) in theMessage Recipient User field. To returnto the graphic overview in the Workflow Builder, choose Back.

To save your flow definition, choose Save and Local Object in thedialog box that appears.

Then activate the flow definition with Activate and return to theinitial screen of the Schedule Manager with Back.

4. Instructor only: In the Schedule Manager, create a new task list with theidentification Z-20. Enter Periodic Procedure PLM200 as thename and save your task list.




Change the task list Z-20 by creating the flow definition Z-131-20 youdefined earlier as a task for the task list. Save your changes and return to theinitial screen of the Schedule Manager.

Hint: A task list usually comprises different flow definitions(for periodic procedures in Financial Accounting, Cost CenterAccounting, and so on). It is also possible to assign individualABAP reports, transactions, memory-joggers, and documents. Thetask list covers all of the periodic procedures in an organization(FI, CO, PS, and so on).

a) You are still in the Schedule Manager. Choose Task List→ Create. Inthe Task List field, enter Z-20 and confirm your entry with Enter.Enter the following data:

Field Name ValuesText in row Task List Z-20 Periodic Procedure

PLM200


To save the task list and return to the screen for editing the task list,choose Save and Back.

You are now in a screen for changing the task list. To include yourflow definition Z-131-20 as a task in the task list, select the PeriodicProcedure PLM200 task list and then choose Insert Task.

In the dialog box, choose Flow Definition as the Type of Task and useZ-131-20 in the appropriate field. Confirm your entry with Enter.

If you choose Expand Subtree, your Period-End Closing PSPLM200 flow definition is displayed as a task in the task list. To saveyour changes and return to the initial screen of the Schedule Manager,choose Save and then Return to Scheduling.

5. Instructor only: In the following step, you will carry out and monitor theperiodic procedures for the investment and customer projects using theSchedule Manager. First, specify the time at which the Period-End ClosingPS PLM200 task is to be executed using Drag&Drop in the daily overview ofthe Schedule Manager. When you schedule the task, use a time earlier thanthe current point in time so that you can start the task immediately.

Use the job monitor to track the progress of the various steps in the task.Refresh the data displayed at regular intervals until you receive a messageabout the Check the Objects in the Worklist express work item.




Then go from the monitor to the object list containing all the objects edited inthe task. Display the legend for the processing status and, where appropriate,object messages on objects that were not processed properly. Now return tothe initial screen of the Schedule Manager.

a) You are still in the initial screen of the Schedule Manager. To start theperiodic procedure, drag the Period-End Closing PS PLM200 taskto the right of the daily overview, for example to time 8:00. In thedialog box that appears, Immediately is defaulted as the execution time.Confirm the dialog box with Schedule the Flow.

Hint: In the daily overview for the current time, the Period-EndClosing PS PLM200 task is scheduled and active .

b) To call up the job monitor, choose Monitor.

Hint: The monitor shows you whether, and if so when,individual steps have been completed, and what the status ofthe various steps is (no errors detected, errors detected, and soon). You can enlarge the chart on the left or scroll to the rightin the list to display the number of objects with errors detectedin each step. If you click any line in this overview, and thenclick the right-hand mouse button, you can display and call upthe various functions that are available.

Refresh the job monitor list a few times. To do this, choose Refresh.When doing so, watch how the system handles the various process inthe flow definition. A dialog box then appears regarding receipt of theexpress work item Check the Objects in the Worklist. Confirm theinformation with Enter.

c) To display further information about the objects processed, firstposition your cursor on the Period-End Closing PS PLM200 line.Next, right-click to open the context menu, and choose Object List.Select all the statuses displayed by choosing Select All, and confirmthe filter criteria with Enter.

Hint: The rows in the object list show the objects processed,and the columns contain the various processing steps(overheads, results analysis, settlement). The icons indicate theprocessing status of the objects. You can:

� Set statuses manually (if, for example, you still want togo ahead despite errors)




� Go directly to master data maintenance� Call up cost reports for the objects� Analyze the error log for the objects

Check the status of the objects displayed. Make any necessarycorrections using the tools mentioned above (master data maintenance,for example). Select a line in the object list with the Error status,choose Object Messages, and take a look at the log. You can changethe master data of an object by choosing Edit Master Data. Go backto the initial screen of the Schedule Manager by clicking Back. Inthe daily overview, the task is still displayed with the Processing isActive status.

6. Instructor only: You changed the step Check the Objects in the Worklistin your flow definition so that you will receive a workflow as the personresponsible after the periodic procedure has been completed. Create a newsession to display the appropriate workflow work item in the BusinessWorkplace. Finish processing the worklist if no errors occurred.

Go back to the Schedule Manager session. Refresh the calendar, and checkover the status of your flow in the daily overview. Then return to the SAPmenu.

a) To create a new session, choose Create New Session. In this session,call up the list of your workflow work items by choosing SAP Menu→Office→Workplace and then Inbox→Workflow. Double-click the lineCheck the Objects in the Worklist in the workflow list.

You can use the workflow to reprocess objects with errors or to finishprocessing the worklist if no errors occurred. Choose the appropriatealternative depending on the result.

b) Go to the session in which the Schedule Manager is still open. Torefresh the data displayed in the daily overview of the ScheduleManager, choose Refresh Calendar. Once the flow has beenprocessed - and no errors were detected - and completed (alternative 1in the workflow), the status is set to Processing Completed WithoutErrors.

To return to the SAP menu, click Back.




Task 2: Optional: Evaluate Period-End Closing �Projects E-99## and T-200##Optional: Analyze the changes to the two projects E-99## and T-200## based onthe period-end closing procedures using a cost element report.

1. Use the plan-based cost element report called Actual/Commitment/Total/Planin CO Area Currency to analyze the costs of the two projects E-99## andT-200## following period-end closing.

What changes have been made on the basis of the periodic procedures?

a) If you have opened cost element report Actual/Commitment/Total/Planin CO Area Currency in a separate session, go to this session andrefresh the report with Report→ Refresh (the Expert Mode indicatormust be set in the report options).

Otherwise, choose SAP Menu→ Accounting→ Project System→Information System→ Financials→ Costs→ Plan-Based→ By CostElement→ Actual/Commitment/Total/Plan in CO Area Currency.Enter the following data in the selection screen:

Field Name ValuesProject E-99##

Plan Version 0

To Fiscal Year Current year + 2 years


To select project T-200##, click the Multiple Selection icon onthe far right in the Project row.

In the dialog box containing the list of single values, enter projectT-200## and confirm your selection by choosing Copy.

To start the report, choose Execute.

To evaluate investment project E-99##, go to the navigation panelon the left and select PRO E-99## Elevator Gr##. Only the costsof project E-99## are displayed.

Hint: As a result of the period-end closing activities carriedout, actual costs are displayed for various cost elementsfor overheads (for example, 655200 Overhead Surcharge- Personnel). Settlement of the WBS elements to an assetunder construction is indicated in the cost element row 811000Capitalized Activity.




To evaluate customer project T-200##, go to the navigation panel onthe left and select PRO T-200## Turbine Gr##. Only the costs ofproject T-200## are displayed.

Hint: Actual costs are also displayed for this project onthe basis of the overhead costs applied. Settlement of theresults analysis costs to the profitability segment is indicatedaccordingly for the actual costs.



Lesson Summary

You should now be able to:� Name various period-end closing procedures� Describe the scenarios for settling the two sample projects


PLM200 Unit Summary

Unit SummaryYou should now be able to:� Name various period-end closing procedures� Describe the scenarios for settling the two sample projects


Course Summary PLM200

Course SummaryYou should now be able to:

� Use work breakdown structures, activities, and networks to structure projects� Discuss aspects of planning dates, resources, materials, costs, and revenues� Name the functions used for budgeting� Explain aspects and processes used for executing projects� Explain various period-end closing activities in Project Management� Use reporting options for monitoring project data


Appendix 1cProjects

cProjectscovers the entire range of project management activities in developmentand consulting projects. In cProjects, you structure projects in line with phases.With the help of special approvals you can make sure that subsequent phasescan only be released once all requirements of the preceding phase have beensatisfactorily accomplished (�Quality Gates�). You use checklists and checklistitems in the project structure to show which requirements need to be met priorto an approval. Tasks that can be linked together using relationships representindividual activities that are later confirmed during project execution.

Figure 66: cProjects � Structures


Appendix 1: cProjects PLM200

For the individual objects of the project structure, you can either plan datesmanually or plan them automatically using appropriate scheduling functions. Ofparticular interest is the provision of an interactive bar chart for graphical projectplanning. Project managers define different roles within the projects that can beassigned with the help of business partners (internal or external resources). Thus,not only can resources be planned in cProjects, but the responsibilities for thedifferent objects can also be defined. A project-specific authorization concept canbe used to ensure that only the appropriate users, user groups, or organizationalunits can access data.

Separate document management, integration with SAP document management,and , in particular, integration with cFolders facilitates the handling of all requireddocuments in cProjects and the exchange of documents with external partners.With help from cost integration, cost-related data in cProjects can be replicatedin SAP CO. This can be achieved using the accounting functions in mySAPERP. Object links allow a connection with other objects from SAP systems, suchas sales orders, purchase order items, or inspection plans. Data from the linkedobjects can be evaluated in cProjects, or it may trigger threshold value violations.Threshold value violations are defined using user-defined formulas in cProjectsand can cause alerts to be sent to whoever is responsible.

Figure 67: cProjects � Functions

As well as project status reports (interactive Adobe documents) and differentevaluations in cProjects, you can use integration with SAP Business InformationWarehouse for enhanced reporting functions. In addition, using product controlplans, requirements for Advanced Product Quality Planning (APQP) in cProjectscan be presented in compliance with relevant standards. Since projects or projecttasks often depend on one another, there are several ways of presenting these incProjects, and of thus facilitating Multi-Project Management.


Appendix 2SAP xApp Resource and Portfolio Management

SAP xApp Resource and Portfolio Management (SAP xRPM) is used for thestrategic management of project portfolios. A lot of companies, depending on theproject type or the department, use different tools for the operational managementof their projects, for example SAP Project System, cProjects, or Microsoft Project.Frequently, projects such as IT projects are even dealt with by external partners.Relevant cost information may be managed in other systems. When creatingbusiness cases for project proposals, Excel tables are sometimes used, and thesecan be quite complex. A joint analysis of such project portfolios to decide whichprojects should be implemented or terminated, which staff resources and financialresources should be made available on the basis of the company strategy, and soon, is not easy. SAP xRPM deals with this problem.

Figure 68: SAP xApp Resource and Portfolio Management


Appendix 2: SAP xApp Resource and Portfolio Management PLM200

In SAP xRPM, data relating to the different project management tools, accountingdata, and data from Human Capital Management (HCM) can be consolidated andexpanded through the inclusion of additional strategic information (for instance,risk assessments or expected commercial value). SAP xRPM is therefore used forthe initial entry of stock balances and for the categorization of all relevant projectsand project proposals on a system-wide basis. The project data and projectportfolio data bundled in SAP xRPM can be analyzed uniformly and transparentlyusing an SAP Enterprise Portal with the help of dashboards, graphical evaluations,and SAP Business Information Warehouse (SAP BW) functions. Functionsfor prioritizing projects and project proposals or �What if� analyses serve asdecision-making aids when it comes to approving proposals or distributing fundsand resources. The aggregation of all relevant project data from the backendsystems in SAP xRPM, furthermore, permits a standard assessment of resourcerequirements, assignments, and availabilities. This also facilitates the integrationof data relating to employee qualifications and availability from HCM systemsand its use for resource planning in SAP xRPM.

Figure 69: SAP xRPM � Functions


Appendix 3Versions

Simulation versions in SAP Project System are modifiable versions of a project.You create them, for example, during the quotation phase before an operativeproject has been created, or for alternative planning of existing operative projectsor parts of these. You can simulate and save changes to a project without themaffecting the operative version. If necessary, you can create several simulationversions, compare them with each other, and transfer the changes back to theoperative project.

Figure 70: Simulation Versions


Appendix 3: Versions PLM200

Project versions are snapshots of a project and are used to record a history of theproject itself. You can create project versions manually (time controlled) or on thebasis of a particular status (action controlled). You cannot change project versions.

Figure 71: Project Versions


Appendix 4Subnetworks

Subnetworks allow you to specify a network in greater detail during the course ofa project. Subnetworks can be nested to any required depth. In other words, youcan create a subnetwork for a subnetwork.You can also create maintenance ordersas subnetworks for a higher-level network.

Figure 72: Subnetworks


Appendix 4: Subnetworks PLM200


Appendix 5Network Configuration

In Project System, you can use the network configuration function if you want tocreate different variants of a complex product. The networks and work breakdownstructures are basically the same for the different variants, but have specificcharacteristics, such as alternative or additional activities or different quantities(number of material components, work, duration).

When you use the configuration function, you normally start with a maximumstandard structure as a template. That is, the standard network and standardwork breakdown structure contain all of the objects (WBS elements, activities,materials, and so on) that are required for every possible variant of the product.When you create an operative network using a configurable standard networkas a template, you specify the variant to be manufactured (characteristic valueassignment). Using object dependencies, you specify which activities and materialcomponents from the standard network are to be copied to the network. Only thoseelements that have been assigned to the activities selected by the configuration aretaken from the standard work breakdown structure together with the higher-levelWBS elements.


Appendix 5: Network Configuration PLM200

Figure 73: Configuring Project Structures


Appendix 6Using Milestones

Milestones are events that are of particular relevance to a project. You can assignmilestones to activities or WBS elements. If you want to use particular milestonesseveral times in project planning, you can create standard milestones, and usethese as templates to copy from. You can analyze milestones and their respectivedates in Reporting. Milestones are also used in Project System for the tasks andfunctions shown in the �Using Milestones� diagram (the milestones can be usedmore than once). The following milestone functions are available:

� Release subsequent activities� Release up to release milestone� Include standard network� Create network� Include subnetwork� Start workflow task


Appendix 6: Using Milestones PLM200

Figure 74: Using Milestones


Appendix 7Documents@web

You can assign documents to projects directly over the Internet or use a browser toview documents that have already been assigned without accessing the SAP GUI.The Internet scenario �Creating Project Documents on the Web� is illustrated inthe �Documents@web� diagram.

Figure 75: Documents@web


Appendix 7: Documents@web PLM200


Appendix 8Project Portals

SAP Enterprise Portal offers companies a Web-based platform that allowsemployees, vendors, business partners, customers, and investors to collaboratewith each other. Using the Enterprise Portal, you can access internal and externalinformation, as well as applications and services that are relevant to your rolewithin your company. mySAP Product Lifecycle Management and mySAPEnterprise Resource Planning provide you with Business Packages to help youset up your portal. The Business Package for projects contains short programs(iViews) that you can use to retrieve data from projects and to compile contentpages for your portal. The �Project Portals I� and �Project Portals II� diagramsshow an example of a project portal.


Appendix 8: Project Portals PLM200

Figure 76: Project Portals I

The work area of the Enterprise Portal comprises a title area and a number of pages.The title area contains the company's corporate header, search and personalizationoptions, as well as a navigation panel with various tab pages. The pages on thetab pages themselves can be either Web pages or different iViews. The iViewsare not completely separate from each other; they support detailed navigation andexchange data with each other. For example, the �Master Data� iView shows thedata for the object that was just selected using the �Project Structure� iView.


PLM200 Appendix 8: Project Portals

Figure 77: Project Portals II


Appendix 8: Project Portals PLM200


Appendix 9Progress Analysis

If you want to control your project effectively, you will need to do more than justlook at costs, resources, and schedules in isolation. You will only be able to drawinformed conclusions as to the progress and current status of your project if youcompare these values with the results actually achieved. Progress analysis enablesyou to do just that. It is suitable both for the internal control of a project andfor external reporting.

You can estimate the percentage of completion (POC) of the WBS elements,activities and activity elements, or you can have it calculated automatically onthe basis of existing data. In each case, a planned POC (expected progress at aspecific point in time) and an actual POC (progress actually made at a specificpoint in time) are determined. By specifying a weighting factor (planned costs, forexample), you can aggregate these values in the WBS.

The system uses a factor such as planned costs to calculate the progress valuesfrom the POCs:

� BCWS: Costs as per planned progress� BCWP: Target costs as per actual progress� Actual costs: Costs actually incurred

By comparing the earned values, you can collect some very important information.By comparing BCWS with BCWP, you can see if there are any deviations from theschedule (the project is progressing too slowly); by comparing the BCWP with theactual costs, you can see if there are any cost variances (project is too expensive).


Appendix 9: Progress Analysis PLM200

Figure 78: Functions of Progress Analysis

Measurement techniques determine how the progress value (planned and actual) iscalculated. The measurement techniques available in the SAP Project System areshown in the �Progress Analysis: Measurement Techniques� figure. A user exit isalso available to allow you to enter your own progress values. In Customizing, youdefine default measurement techniques for each object (WBS element, activity,project orders). If necessary, you can always overwrite these defaults in the projectstructures. The system uses specific weighting factors to summarize progressvalues in the project structure. One such weighting factor is the project cost plan.


PLM200 Appendix 9: Progress Analysis

Figure 79: Progress Analysis: Measurement Techniques

As of SAP ERP Central Component 6.0, the Progress Analysis Workbenchprovides a tool that consolidates and simplifies previous functions for progressanalysis in Project System, and facilitates the export and import of progress databetween SAP PS and Microsoft Excel.


Appendix 9: Progress Analysis PLM200


Appendix 10Cross-Project Evaluations

It is very important that you should be able to evaluate key figures across projects.There are various ways in which you can do just that:

� In project summarization, you can define as many summarization hierarchiesas you require. Summarization runs aggregate costs, revenues and paymentdata for the various nodes in the summarization hierarchies. Summarizationreports are an effective means of reporting across projects.

� In project reports, you can display data in a range of views - you are notrestricted to the project structure view. These alternative views mean thatyou can evaluate both commercial and logistical key figures in a costcenter hierarchy, profit center hierarchy, investment program hierarchy, or asummarization hierarchy that you have defined yourself.

� In Profit Center Accounting and Profitability Analysis, you can evaluate keyfigures for profit centers and profitability segments.

In project summarization, you can evaluate costs, revenues, and paymentdata across projects. Summarization hierarchies form the basis for projectsummarization. In Customizing, you can define as many of these hierarchiesas you require. You define summarization hierarchies using master datacharacteristics of the WBS elements or activities. Example of a summarizationhierarchy (in IDES: 1301):

� 1st level is always the controlling area� 2nd level is the Project Type field (sales projects, investment projects, cost

projects, and so on)� 3rd level is the Person Responsible field (Smith, Green, Johnson, and so on)

During an inheritance run, the characteristic values of higher-level WBS elementsare passed on to any lower-level WBS elements and activities that have nocharacteristic values of their own.


Appendix 10: Cross-Project Evaluations PLM200

Figure 80: Project Summarization: Inheritance

During the summarization run, the key figures of the project (costs, revenues andpayment data) are totaled up for the various nodes in the summarization hierarchy.Once the summarization run is complete, you can use summarization reports toanalyze the quantity structure (objects at a summarization node) and values inthe entire summarization hierarchy. You can also use the structure informationsystem or controlling information system to display selected projects in the orderof the summarization hierarchy.


PLM200 Appendix 10: Cross-Project Evaluations

Figure 81: Project Summarization: Summarization and Evaluation

The Project System logical database (PSJ) forms the basis for reporting in theinformation system. You can display the data retrieved from the database in arange of different views (the project structure view, for example, or a profit centerhierarchy view). You define a hierarchy type for each view and, if necessary, youdefine a hierarchy or a set for summarization. A user exit is also available fordefining views of your own. You can use the structure information system andthe controlling information system to display data in the project views shown inthe diagram.



Figure 82: Project Views

Whereas project controlling involves planning and monitoring one or moreprojects, Profitability Analysis and Profit Center Accounting are used for differentpurposes. Profitability Analysis allows you to monitor the external market andindividual market segments. In Profitability Analysis, reporting is performed onthe basis of profitability segments. Project data is posted to Profitability Analysiswhen you settle a project. Profit Center Accounting allows you to monitor thesuccess of your company's organizational units. Reporting is performed at theprofit center level. Project data can be posted to Profit Center Accounting if datais written to a profit center document when CO and FI postings are made to theproject.


PLM200 Appendix 10: Cross-Project Evaluations

Figure 83: Project Controlling � Enterprise Controlling


Appendix 11Evaluationswith SAPBusiness InformationWarehouse

The Catalog Browser in the Business Explorer enables you to group reports to suityour requirements and quickly access the reports you use most often. You cangroup your favorites into bundles, giving them any name you like and maintainingthem as you want. You can use the Business Explorer to display reports inMicrosoft Excel (with Business Information Warehouse enhancements). InInternet and intranet environments, the Business Explorer runs in a Web browserallowing you to page through report catalogs and execute reports. The BusinessInformation Warehouse (BW) permits the use of both predefined standard reportsand ad-hoc evaluations, both with detailed (drilldown) and multidimensional views("slice and dice"). You can assign reports to single roles. Slice-and-dice operationsare possible because the data is stored multidimensionally in InfoCubes. Thesecontain characteristics and key figures. The OLAP (Online Analytical Processing)processor uses the characteristics to display different views of key figures anddynamically calculated figures (derived key figures) in accordance with yourrequirements. We deliver the following characteristics and key figures in ProjectSystem: project definitions, WBS elements, network activities, activity elements,material components, milestones, status information on all relevant objects,budget, statistical key figures for WBS elements, networks, dates, durations andfloats, cost information and payment data for relevant objects, results analysis data.


Appendix 11: Evaluations with SAP Business Information Warehouse PLM200

Figure 84: Evaluations with SAP Business Information Warehouse


Appendix 12Scheduling Scenarios

When planning dates in projects, you can define the scheduling parametersyourself. You can also use predefined scheduling scenarios. In the bottom-upscheduling scenario, the earliest activity dates and the finish date of the networkare initially determined, for example, from the start date in the network header.Following this, backward scheduling is carried out to determine the latest dates.The dates that have been determined in this way are copied as planned dates to theWBS elements to which the activities are assigned and then extrapolated withinthe structure. This scenario is illustrated in the �Scheduling� diagram in the �DatePlanning� lesson.

In the top-down scheduling scenario, you plan dates for WBS elements manuallyand define the project in such a way that the different phases are to be carried outwithin specified periods. The consistency is checked automatically by the systemwhen you save your data. When scheduling the assigned activities, you can thenuse the planned dates of the WBS elements as a basis for forward and backwardscheduling. This scenario is illustrated in the �Top-Down Scenario� diagram.


Appendix 12: Scheduling Scenarios PLM200

Figure 85: Top-Down Scenario


Appendix 13Service

Service activities (or service activity elements) trigger similar purchasingprocedures for external services to externally-processed activities. For serviceactivities, however, you create service specifications, which generally not onlycontain a service to be procured but also a complete hierarchy of planned services.You can use value limits to limit unplanned services. With service activities, youestablish a connection to the MM-SRV component, which supports everythingfrom issuing a request for quotation and awarding the service to entering andaccepting services. In contrast to externally-processed activities, �goods receipt�for services involves the following two steps:

� Entering the services performed� Accepting the services performed

As of SAP ERP Central Component 5.0, you can also call up an external catalogin a network and copy services from this to a service activity.


Appendix 13: Service PLM200

Figure 86: Service


Appendix 14OCI Interface

The standard Open Catalog Interface (OCI) is available to help you select andassign material components to network activities. You can use this interface tointegrate the component selection function for an internal or external catalog,which conforms with the OCI specification, from a network activity. You can thenselect material components within the catalog. The components are assigned tothe network activity from which the catalog was accessed.

Figure 87: OCI Interface


Appendix 14: OCI Interface PLM200


Appendix 15Integrating iPPE with Project System

As of SAP ERP Central Component 6.0, you can integrate Project System (PS)with Integrated Process and Product Engineering (iPPE). iPPE is a new formof master data for engineering and production which, in particular, allows youto enter information about your products and their variants in a data model andthen add more detail later. One of the main uses of iPPE is to map a productstructure from nodes, variants, alternatives, relationships and, where applicable,abstract objects, which can be developed in Customizing for iPPE. These productstructures are managed in iPPE Workbench Professional (Product Designer).

If projects are used, for example, for the construction of prototypes or test parts,as assignment can be made between iPPE nodes and variants on the one hand,and WBS elements and activities on the other. This assignment can be savedboth to Product Designer and to individual tab pages for the integration of iPPEwith PS in the detail screen of the PS objects. Defining reference points for theiPPE - PS integration can further simplify the assignment. Finally, in the ProductDesigner filter screen, you can use the assignments to start transferring materialcomponents to Project System.


Appendix 15: Integrating iPPE with Project System PLM200

Figure 88: Product Designer


Appendix 16In-House Production Process

To plan the material requirements for a project, you assign material components toactivities. Depending on the item category of the component assignment and arange of other settings, the material is either purchased or manufactured internally.The �In-House Production Process� diagram shows the procedure involved inproducing a material in house along with the BOM for its subsequent use in theproject.

Figure 89: In-House Production Process

In the example shown, material T-20600 is assigned to activity 4000. To procurethe material along with the secondary requirements (T-20610, T-20620, T-20630),requirements planning is carried out (MRP run). In the MRP run, planned orders


Appendix 16: In-House Production Process PLM200

and purchase requisitions are generated as planning procurement elements for thematerial and the secondary requirements. The planning procurement elements areconverted to a production order for material T-20600 and purchase orders forthe secondary requirements. The secondary components are then purchased andused in the production order. The production order is processed and the finishedmaterial is posted to stock. The process concludes when material T-20600 iswithdrawn from stock for use in the network.

When the valuated project stock is used for inventory management for the materialcomponents, all values at all production levels are displayed and can be analyzedin the project information system.


Appendix 17Progress Tracking

You can use Progress Tracking to track the progress of material componentsin Project System networks and purchase orders in Materials Managementby monitoring the dates of events you have defined. For example, you candefine goods issue or goods receipt events to track components. You can enteror schedule the dates of the events manually or use customer enhancements todetermine them from system dates or external data.

Progress Tracking encompasses the entire range of functions for tracking thedates for material components in Project System. It also provides a more flexibleCustomizing tool for making default settings, as well as a range of additionalfunctions (status information, mass change, copying, filtering, printing, andanalysis functions, for example).

The �Progress Tracking: Analysis� figure shows the interface you use to analyzeProgress Tracking data. In the analysis, you can analyze the events along with thedates for the selected objects. You can configure the Progress Tracking profile insuch a way that variances are displayed automatically. By defining user-specificlayouts, you can adapt the interface in accordance with your requirements.


Appendix 17: Progress Tracking PLM200

Figure 90: Progress Tracking: Analysis


Appendix 18Delivery from Projects

You can select material components that are to be delivered to the customer andautomatically create a delivery note that can then be processed by the shippingdepartment. You can select the components by specifying the project definition,the WBS element, a sales order, or a network. You can refine your selection byspecifying further criteria (such as delivery date, ship-to party, requirementsdate, activity number, purchase requisition number). When you deliver from theproject, detail screens for each component display the various quantities related toa component (such as requirement quantities, item quantities, quantity in delivery,open quantities, available open quantities). Once you have selected the material,the delivery note is created with a reference to the network components.

Figure 91: Delivery from Projects


Appendix 18: Delivery from Projects PLM200


Appendix 19Workflows and Mails in Project System

The SAP Business Workflow comprises various tools and functions for controllingand processing cross-application processes automatically and for modellinggeneral business processes. You can also use workflows in Project System toaccess automated and integrated processes in cross-area and cross-departmentalprocesses so that you can optimize the information flow. SAP Office in ProjectSystem is generally used for the following functions:

� Sending PS texts (no workflow)� Taking measures if the budget is exceeded (no workflow)� Making subsequent changes to purchase order-relevant data in the network

(standard task)� Handling variances in confirmations (standard task)� Sending pools of confirmations (standard task)� Executing the milestone function Start Workflow Tasks (user-defined task)


Appendix 19: Workflows and Mails in Project System PLM200

Figure 92: Workflows and Mails in Project System

You can also use workflows in Project System for configuration changemanagement during variant configuration and predefined workflows for claimmanagement.


Appendix 20Assembly Processing

Assembly processing in Project System is used to execute customer projects thathave a similar structure. To trigger assembly processing, create a sales document(customer inquiry or sales order, for example) for a material. Depending onthe sales document type and the material, the system automatically creates anoperative network for the sales document item. When you save the sales document,the system may create a new work breakdown structure that can be identifiedusing the sales document number. In this case, standard structures are used astemplates. Due to the direct link between the sales document and the project,data relating to quantities, dates, costs, and revenues, for example is exchangedbetween the documents. In this way, assembly processing enables you to exchangedata between your sales department and the project team more effectively.

To cover different product options, you can also carry out variant configurationalongside assembly processing.


Appendix 20: Assembly Processing PLM200

Figure 93: Assembly Processing in Project System


Appendix 21Archiving

You can archive your projects and delete operative data from the database. Youcan use the structure information system to evaluate your archive versions at alater point in time. Hierarchy reports, cost element reports, and line item reportsare also available for this. Using the Project System menu, you can archive thefollowing objects:

� Operative project structures and project versions (archiving objectPS_PROJECT)

� Standard networks (archiving object PS_PLAN)� Settlement documents, documents on funds reservations, fixed price

agreements, and fixed price allocation (archiving objects CO_KABR,FM_FUNRES and CO_FIXEDPR)

Objects are often archived and deleted in General Archiving. You can usearchiving object CM_QMEL to archive claims.

Before deleting operative project structures, you should normally carry out thesteps shown in the �Archiving Steps� diagram. The following prerequisites mustbe fulfilled for the various steps:

� Deletion indicator: the balance in the object must be zero. There must not beany open purchase requisitions or purchase orders. Assigned orders mustalso be flagged for deletion.

� Deletion indicator: the object must already be flagged for deletion. Thedeletion indicator must also be set in assigned orders.

� Delete: the deletion indicator must be set in the objects you want to delete.


Appendix 21: Archiving PLM200

Figure 94: Archiving Steps


GlossaryActivity

Task in a network that has a defined start and finish. Project System has thefollowing activity types: Internal processing, external processing, costs,service

Billing PlanA list of dates from which down payment requests and sales-relevant invoicesare sent to customers. The planned revenues and planned incoming paymentsare automatically derived from the billing plan and recorded in the relevantWBS element.

BOMA complete, structured list of the components that comprise an object. Thelist contains a description, the quantity, and unit of measure. The componentsare known as BOM items.

BudgetPredefined cost framework for a task or project within a specific period.Budgeting differs from cost planning in that it is binding. Whereas youmust estimate your project costs as accurately as possible during projectcost planning, it is in the approval phase that funds are actually allocated inthe form of a budget.

ClaimProject-specific notification category A claim is used to document variancesfrom the project plan. You can use claims to plan costs incurred by variances,as well as initiate and monitor follow-up activities.

Company CodeThe smallest organizational unit of Financial Accounting for which acomplete self-contained set of accounts can be drawn up for purposes ofexternal reporting.

Controlling AreaAn organizational unit within a company, used to represent a closed systemfor cost accounting purposes. A controlling area may include single ormultiple company codes that may use different currencies.

Cost CenterAn organizational unit within a controlling area that represents a definedlocation of cost incurrence. The definition can be based on functionalrequirements, allocation criteria, physical locations, or responsibility forcosts.


Glossary PLM200

Customer InquiryA customer request to a company for a quotation or sales information that isnot binding. The request is received by a sales area that is then responsiblefor processing it further.

Goods IssueA term from Inventory Management denoting a reduction in warehouse stockdue to a withdrawal of stock or the delivery of goods to a customer.

Goods ReceiptA term from Inventory Management denoting a physical inward movementof goods or materials from a company, usually with reference to a purchaseorder or production order.

Internal Activity AllocationInternal cost allocation procedure whereby the valuated activities (allocationbases) carried out by cost centers are reallocated to the cost receiver accordingto the cause. In internal activity allocation, the service carried out by the costcenter is multiplied by the planned price for the activity type. This results inthe costs that have to be cleared. The sender cost center is credited by thisamount and the receiver object debited.

Internal OrderOrder category in Controlling. Internal orders are normally used for planning,collecting, monitoring, and settling costs incurred by internal measures andtasks.

Investment ProgramHierarchical structuring of a company's undertaking to create tangible assetsor render services for an approval year.

Maintenance OrderOrder for detailed planning and associated documentation of measures duringmaintenance.

MilestonesObjects representing events that are particularly important for the progress ofthe project or are of special interest. You can assign milestones to individualactivities or WBS elements.

NetworkDescribes the chronological sequence of and dependencies between eventsand activities in a project, and maps the actual flow of the project.

Production OrderA production order used in discrete manufacturing.

Profit CenterAn organizational unit in Accounting that reflects a management-orientedstructure of the organization for the purpose of internal control.

Project DefinitionA binding framework for all the organizational elements created in a project.The project definition contains default and control values. When you create awork breakdown structure, you automatically create a project definition.


PLM200 Glossary

Purchase OrderA request or instruction from a purchasing organization to a vendor (externalsupplier) or a plant to deliver a quantity of material or render a service at acertain point in time.

Purchase RequisitionA request or instruction to Purchasing to procure a quantity of a material orservice so that it is available at a certain point in time.

PurchasingA component of Materials Management with the following tasks: procuringmaterials and services externally, determining possible sources of supply fora requirement, monitoring goods deliveries and payment.

RelationshipA way of describing the link between the start and finish points of twoactivities in a network. Relationships determine the sequence of activities.

ReservationA request to material requirements planning to keep a material ready forissue at a future date for a certain purpose. The purpose of a reservation is toensure that a material is available when required.

Sales OrderA customer request to a company for the delivery of goods or services at acertain time. The request is received by a sales area that is then responsiblefor fulfilling the contract.

Standard NetworkThe network structures that are not directly associated with a project andcan be used as templates for creating other standard networks or operativenetworks.

Standard Work Breakdown StructureA neutral work breakdown structure that can be used several times over andonly serves as a template for creating operative work breakdown structures.

WBS ElementA structure element of the work breakdown structure. It describes a concretetask or a partial task that can be further subdivided. Planned and actual valuesfor a project are defined and aggregated in WBS elements.

Work Breakdown Structure (WBS)A model of the project that shows the project activities to be fulfilled inhierarchical form. It divides the project into clearly-structured sections.The individual elements of the work breakdown structure are called WBSelements.

Work CenterAn organizational unit that defines where and by whom an activity is to becarried out. The data in the work center can be used for scheduling, costing,and capacity planning.


Glossary PLM200


IndexAActivity, 5, 36, 51, 92,115�116, 125, 127, 166,181, 214

Availability Control, 153BBasic Date, 91�92, 126, 165Billing Plan, 128, 199Budget, 150�154, 277CCapacity Requirements, 103CATS, 167�168Claim, 185�186, 281Confirmation, 103, 129, 166,199, 277

Cost Activity, 127, 181cProjects, 4, 233Customer Inquiry, 6, 127, 279DDocument Management, 50,234

EEasy Cost Planning, 125�126,182

Execution Services, 125�126,182

Externally-ProcessedActivity, 102, 105, 127,181, 183

GGoods Issue, 181�182, 184,273

Goods Receipt, 181, 183, 273HHierarchy Graphic, 25, 69, 91

IInternal Activity Allocation,182

Internal Order, 125, 186Internally-Processed Activity,102�103, 127, 181

Investment Program, 154iPPE, 269Item Category, 115MMaintenance Order, 91, 125,167, 239

Mass Change, 51Material, 114, 116, 127,181�184, 267, 271, 273,275

Milestone, 37, 50, 129, 199,243, 277

mySAP ERP, 3, 247mySAP PLM, 3, 247NNetwork, 4, 36, 51, 92, 181,214

Network Costing, 103, 124,127

Network Header, 37Network Structure Graphic,40, 69, 91

OOpen PS, 52, 167Operative Indicators, 23PProduction Order, 115, 168,184, 272

Progress AnalysisWorkbench,253

Project Builder, 22, 36, 126


Index PLM200

Project Definition, 20, 51Project Planning Board, 22,36, 89, 92, 103, 165

PS Cash Management, 201PS Text, 50, 277Purchase Order, 115,181�184, 273, 277

Purchase Requisition, 105,115, 181�184

QQuotation, 127�128RReference Point, 116Relationship, 5, 36, 40, 51, 89SSales Order, 6, 128�129, 199,279

Sales Pricing, 127SAP xRPM, 4, 235Scheduling, 92, 103, 263Service, 102, 105, 127, 181,183, 265

TTransferring BOMs, 116WWBS Element, 5, 20, 23, 36,51, 91, 125�126, 151, 165,181, 186, 200, 214

Work Breakdown Structure,4, 20, 91, 125, 151

Work Center, 103�104Workforce Planning, 104, 167


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