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Costing method for EC&O

Dec 13, 2016 at 12:13 PM

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Former Member

Hi,

I am working in a construction company, and using SAP for past 7 years. Initially we were asked to use network costing for our million dollar projects. we have been finding many issues in network costing as all resources were attached as activity element to our activity which made our structure too complex to handle and progress update was another nightmare as you confirm activity and its element to get BCWP and forecasting capacity.

Recently, an external consultant came and suggested to change costing method to ECP but in ECP we have to compromise on capacity planning and BCWS.

This is to just take expert advise on costing method recommended for construction project having thousands of activity.

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1 Answer

Ken Melching
Dec 18, 2016 at 05:47 PM
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The #1 reason to use Network Activity Costing is your planning activities are tied to the Project Schedule and when the networks are rescheduled your cost plan will adjust as well. So, the first question is how/where are you performing scheduling?

It also looks like you are performing Progress Analysis, is it being performed in SAP?

Easy Cost Planning makes the planning data entry easier for the user but as you said it limits functionality.

There is also Unit Costing which works like Network Activities planning.

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Former Member

Both scheduling and progress analysis are in SAP.

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