PPM / FI integration...

[shinas_rh]

Dear SAP Friends..

I am an FICO Consultant. In my Current Project Scope we have PPM also.

I just want to know is there any Integration between-ppm  and FI ?

how about NPV and IRR calculations ?

Is there something to do from FICO Side..

I am totally new to PPM,so detailed explanation and guidelines will be highly appreciated..

Thanks in advance

Shinas

[Brendan_Ward]

Hi Shinas,

The Configuration Content for PPM will also be useful and guides you through the necessary config. I am not sure of your PPM release but here are the relevant SAP Notes:

1411953 PPM 5.0: Configuration Content

1826389 PPM 6.0: Configuration Content

2026421 PPM 6.1: Configuration Content

Best Regards,

Brendan

[amitdhar]

Hi Shinas,

Regarding Integration
between PPM and FI, there is no direct integration. But if u r creating PS
project from PPM, you can fetch actual cost from PS to PPM. You need to define
financial groups against Cost element /Cost center and activity type.

For NPV and IRR, you can calculate
directly in PPM.

In PPM 5.0 IRR and NPV is manual
input but in PPM 6.0 NPV is getting automatically  calculated  based
on certain inputs like discount rate, time period.

Formula for calculating NPV:

A present value is
the value now of a stream of future cash flows, negative or positive. The value
of each cash flow needs to be adjusted for
risk
and the time value of money.

A net present value (NPV) includes all cash
flows including initial cash flows such as the cost of purchasing an asset,
whereas a present value does not. The simple present value is useful where the
negative cash flow is an initial one-off, as when buying a security.

A discount rate
needs to be used to adjust for risk and time value, and it is applied like this:

NPV

= CF₀

+ CF₁/(1+r)

+ CF₂/(1+r)²

+ CF₃/(1+r)³ ...

WhereCF ₁ is the cash flow the investor
receives in the first year, CF₂the cash flow the investor
receives in the second year etc.



and r is the discount rate.

Regards

Amit
Dhar