how PS do payment control

[Former Member]

Dear all,

could someone explain how PS do the payment control as the project proceeds?

is it something to do with the project cash management?

please brief it.

i go went the library but a little confused.

thanks a lot.

Judy

[Former Member · Accepted solution]

Hi Judy,

To get the project cash flow, Project Cash management should be activated to record the payment details.

Commitment Items with category 30 are used to read the outgoing payment details (vendor payments) based on delivery date in PR and payment terms in POs and incoming payment details (customer invoice) based on payment terms in billing documents... all these payment details are recoded against commitment items under FM Area and shown in expenditue/revenus report. This functionality helps to monitor,optimize and have a better control on cash in and out flow during the project life cycle .

Prerequisite :

1. FM Area is required and assigned to company code.

2. Project cash management must be activated in Contolling Area.

3. Commitment Items required in FM Area.

Hope this clears you about cash management role and payment control.

Regards,

Hari

[Former Member · Accepted solution]

Dear all:

I'm implementing PS Cash Management. I read the SAP help documentation, but I'm so confuse. I don't know if I will only use PS-CM to analyze invoicing dates, or the movements from the other components FI/PU/SD will update automatic in the projects.

I would appreciate if you could clarified the following questions:

1. It is neccesary to create WBS and Networks? As the help sap said: WBS is use to analyze the charges, and network to analyze the down payments...It is correct?

2. How can I define which kind of activities will use? I mean external activities, components? In my current projects each supplier is assigned to a material, whether or not store stock (service).

I was trying to create an externat activity, but the system show me a message about the material.

3. If I create invoicing planning for WBS and Networks, then which dates will take the system to pay: The dates referred in the invocing planning or the dates of the movements in FI / PU / SD?

4. It is neccesary to plan the payments (By CJ48) and create invocing planning (By WBS)? Because when I analyze the information the planning that was created in the different places are combined.

I hope you can give me some advices about the module.

Thank you.

Sincerely,

Karim Rojas

[stheurkar]

Hi Judy,

payment control as the project proceeds in ps:

business transactions carried out during the project run result in costs affecting expenditures and revenues in the project, along with payments in and out. You must plan and monitor payments so that you can identify when payments occur as part of project processing. This is the only way to ensure that the required cash is available when needed and ensure the best possible payment flow.

project cash management:

project cash management valuates the formation of capital on a project basis and enables you to monitor the cash flows in your project.

refer link for project cash management

http://help.sap.com/saphelp_erp60_sp/helpdata/en/4c/22748846e611d189470000e829fbbd/content.htm

Regards,

Sandeep