Engineer to Order

[Thorben_Hald]

Hi

What is the outlook for support of engineering projects with networks (or similar) that supports planning of materials and resources?

Thanks

[former_member132185 · Accepted solution]

HI Thorben,

In SAP S/4HANA Cloud, we already have the Project Control - Procurement (Scope Item 4RF) that enables you to plan, trigger, and monitor procurement of materials and services that are required for a successful project execution. This upfront procurement planning aligns with the work packages to ensure on-time delivery of the requested materials or services.

With EPPM in SAP S/4HANA Cloud, we now have a new Project Demand object that ties in the relationship between Project Workpackages and Procurement. Although this is different from networks, the capability of planning and managing project based procurement directly from the individual workpackage is available.

In the last few releases we have actively been adding more capability to this area of project-procurement integration. As of the latest release, you can create services and non-stock material procurement. Resource requests and stock materials are still not included in this.

From innovation perspective we have an innovation Procurement of stock materials for projects (investment projects only) planned later this year and Direct project resource staffing in enterprise projects planned for 2022

Regards,

Raghavendra Mani

[Thorben_Hald · Accepted solution]

Hi Raghavendra Mani

Thank you for that elaborate answer - it is always nice to hear about these enhancements to an important and complex area. I think I understand the status now from a material planning and execution perspective within projects.

On a related note - how linked together is this project process you are describing above with the sales processes? I assume that there is no direct link as of yet between the project and the sales order?

[former_member132185 · Accepted solution]

HI Thorben,

Glad my answer was able to help.

Actually we already have this project and SO integration as of 2005 release last year. You can find details Project Control - Sales (‏4I9‏). This scope item depicts the integration of projects with the sales orders that enable the direct flow of revenues to the projects.

As a core ERP functionality, the integration of projects with the sales orders enables the direct flow of revenues to the project. The margin can be easily analyzed along with the incurred costs. This scenario covers the fixed-price project billing with the possibility of a down-payment and billing plan. This works currently for our project which use the profile Projects with Revenue.

Please review the detailed process flow highlighting the different integration points between Project and SO.

Here you can see that the user can create a hierarchy as an accounting structure, set up billing elements, and plan costs and revenues, and as soon as the project is released, actual costs and revenues are captured, allowing the project profitability to be analyzed. At the same time, the revenue is recognized with each cost posting.

Regards,

Raghavendra Mani