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Former Member

Process flows

This may sound very silly.

I have been trying to undertsnad PS and therefore reading lot of SAP library regarding the same. But I am confused since PS gets data and is connected to so many modules like SD, FI, CO, MM.

I would greatly appreciate, if somebody can tell me some differences:

1. What is the difference functionally, between Investment Projects, Customer Projects, Production etc.. where do these differences appear? in what areas does it change the process flow?

2. How is the Sales Order (or inquiry or quotation) connected to WBS element?

3. Activities capture costs, where r the revenues captured??

Thanks,

~A

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2 Answers

  • Best Answer
    Jan 13, 2009 at 03:43 AM

    Ans. 1

    -


    In PS project can be divied broadly in three diff. way.

    internal - expense - cost - maintenance project

    external - customer - revenue porject

    capital - investment project

    For Investment Projects, RA configuration is not required.

    The details process for hte same is

    By using the integration so SAP PS & IM in the SAP system, you can plan, distribute monitor budgest of projects.

    Investment programmas in the investment management for the basis for the comprehensive planning & budgeting of costs for a company's plans or investments. Investment programs consist of an investment program defination with genearal specifications and default values for entier programmes & hierarchically arranged IM Program postions.

    After you create structure of an investment program, you can use this to plan costs hierarchically and to allocate budget.

    Maintenance order, internal orders and projects that you assign to investment program postions are called investment measures. ( in SAP terminology create Appropriation request IMA11) to map project proposals, ideasother plans before their possible implmentation in system. you can create variant within the AR for the different investmemy options

    Using status & workflow you can map multilel aprroval process for AR in IM.

    After you approve the AR you can transfer this to the Investment measure

    when you create project from AR, you can use operative & std WBS as template. when you transfer AR to project, project receives master data of AR.

    after you hvae assigned AR & Investment measure to investment program postions, you can roll up their planned cost to relevet programm positions ( IM34)

    Cost pllanig of Investment programme can be use for the budgeting process in IM. Fist step to allocate budget odiff. prog. positions & second to allocate budget to IM measure i.e. in PS terms projects.

    Settelemnt of Investment projects :

    if you assign an investment profile to a WBS, the system may automaically generate one or more AUC when you release WBS. Based on requirement of your you create fixed asset & diff. part to be capitalised as FXA & not.

    -


    In Customer Projects u may have to configure following process, which are not required in case of Invest Projects

    1. Milestone Billing

    2. Delivery

    3. RRB (Resouce Related Billing)

    4. Assembly Processing

    5. Result Analysis

    For Investment Projects, RA configuration is not required.

    -


    In Expense project Revenues will not come in to picture.

    whatever the cost will come at the period end mostly you will settle to Cost object like as Cost cneter.

    Ans.2

    The sales order , Inquiry , Quotation will like to Project mostly in the case of customer project. In IDEAS very detailed scenario is depicted for the same. ( Turbine Project )

    Ans. 3

    Revenue will come to project via Billing plan.

    Regards

    Nitin

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    • A/c to me from the Project Builder you can navigate to Sales pricing in this way

      Open your project if you have maintained DIP profile for that project profile than click on $ sign yelllow button on below menubar ( ShiftF12 ) / (CtrlShift+ F12)

      you can use also use DP81.

      Regards

      Nitin

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    Former Member
    Jan 13, 2009 at 03:48 AM

    Hi,

    Part (I)

    Project managers usually distinguish between two types of project:

    1. Externally financed projects

    a. Customer projects ( For e.g ETO/EPC, Software projects)

    2. Internally financed projects

    a. Overhead cost projects (For e.g.Inhouse projects, R&D,Marketing )

    b. Capital investment projects ( For e.g. Asset construction)

    These different projects are maintained as different Project type in Control Data of Project profile

    (T code OPSA).

    Capital investment project can be mapped with just a work breakdown structure i.e without network or actvities.You use the work breakdown structure to plan & monitor the project for constructing any fixed asset like building,structure.Here settlement is carried out to assets under construction or completed asset.

    Customer project is mapped with a work breakdown structure and a network.Starting point for creating & executing the project is a Customer Inquiry & later on a sales order for constructing a system ordered by Customer ( for e.g. let us say Turbine). Here Network acts as a quantity structure for planning dates,cost,resources & material requirements automatically.

    In simplified form this project can be divided into phases as

    a. Quotation

    b. Order

    c. Billing

    Part (II)

    To know integration of PS with SD, u can refer to assembly processing.

    An assemble to order environment is one in which the product or service is assembled on receipt of the sales order. Key components are planned in anticipation of the sales order. Receipt of the order initiates assembly of the customized product. This business process is called assembly processing. It creates a link between sales document and project. It is an indirect method of generating a network or a WBS from a sales order. It is used throughout SAP R/3 logistics applications to automatically generate the order types like Planned order, Production order, Process order, Service order, Network (project).

    Part(III)

    When the sales order is received, it is assigned to the project. This means that it can be used to plan revenue and then post this revenue.Actual revenue is posted to the project by means of milestone billing.

    Edited by: Tushar Vhora on Jan 13, 2009 4:51 AM

    Edited by: Tushar Vhora on Jan 13, 2009 4:57 AM

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