PLM200 Project Managment

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PLM200Project Management

Date

Training Center

Instructors

Education Website

Participant HandbookCourse Version: 2005 Q2Course Duration: 3 Day(s)Material Number: 50073686

An SAP course - use it to learn, reference it for work

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Copyright

Copyright © 2005 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without theexpress permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary softwarecomponents of other software vendors.

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THESE MATERIALS ARE PROVIDED BY SAP ON AN "AS IS" BASIS, AND SAP EXPRESSLYDISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR APPLIED, INCLUDING WITHOUTLIMITATION WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULARPURPOSE, WITH RESPECT TO THESE MATERIALS AND THE SERVICE, INFORMATION, TEXT,GRAPHICS, LINKS, OR ANY OTHER MATERIALS AND PRODUCTS CONTAINED HEREIN. INNO EVENT SHALL SAP BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL,CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANY KIND WHATSOEVER, INCLUDINGWITHOUT LIMITATION LOST REVENUES OR LOST PROFITS, WHICH MAY RESULT FROMTHE USE OF THESE MATERIALS OR INCLUDED SOFTWARE COMPONENTS.

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About This HandbookThis handbook is intended to complement the instructor-led presentation of thiscourse, and serve as a source of reference. It is not suitable for self-study.

Typographic ConventionsAmerican English is the standard used in this handbook. The following typographicconventions are also used.

Type Style Description

Example text Words or characters that appear on the screen. Theseinclude field names, screen titles, pushbuttons as well asmenu names, paths, and options.

Also used for cross-references to other documentationboth internal (in this documentation) and external (inother locations, such as SAPNet).

Example text Emphasized words or phrases in body text, titles ofgraphics, and tables

EXAMPLE TEXT Names of elements in the system. These include reportnames, program names, transaction codes, table names,and individual key words of a programming language,when surrounded by body text, for example SELECTand INCLUDE.

Example text Screen output. This includes file and directory namesand their paths, messages, names of variables andparameters, and passages of the source text of a program.

Example text Exact user entry. These are words and characters thatyou enter in the system exactly as they appear in thedocumentation.

<Example text> Variable user entry. Pointed brackets indicate that youreplace these words and characters with appropriateentries.

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About This Handbook PLM200

Icons in Body TextThe following icons are used in this handbook.

Icon Meaning

For more information, tips, or background

Note or further explanation of previous point

Exception or caution

Procedures

Indicates that the item is displayed in the instructor�spresentation.

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ContentsCourse Overview ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

Course Goals.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .viiCourse Objectives .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .vii

Unit 1: Introduction ... .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1Introduction ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Unit 2: Project Structures ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Work Breakdown Structure .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Activities and Networks ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Milestones, Documents, and Tools .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Unit 3: Analytics and Reporting..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Reporting ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Unit 4: Planning..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Date Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89Resource Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103Material Planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116Cost and Revenue Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126

Unit 5: Budget ... ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .155Budget.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156

Unit 6: Execution ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .171Actual Dates and Confirmations .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173Assigning Documents, Procurement Processes, and Claim Management .. . . . . . .189Milestone Billing and PS Cash Management ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .212

Unit 7: Period-End Closing..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .225Period-End Closing and Settlement ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226

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Contents PLM200

Appendix 1: mySAP PLM Program and Project Management .... . . . . . . . . . . . . .247

Appendix 2: Versions ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .249

Appendix 3: Subnetworks ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .251

Appendix 4: Network Configuration ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .253

Appendix 5: Using Milestones ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .255

Appendix 6: Documents@web ...... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .257

Appendix 7: Project Portals ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .259

Appendix 8: Progress Analysis ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .263

Appendix 9: Cross-Project Evaluations ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267

Appendix 10: Evaluations with SAP Business Information Warehouse ... .273

Appendix 11: Scheduling Scenarios ... .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .275

Appendix 12: Service ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .277

Appendix 13: OCI Interface ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .279

Appendix 14: In-House Production Process ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .281

Appendix 15: Progress Tracking ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .283

Appendix 16: Delivery from Projects ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .285

Appendix 17: Workflows and Mails in Project System ...... . . . . . . . . . . . . . . . . . . . . .287

Appendix 18: Assembly Processing ... .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .289

Appendix 19: Archiving ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .291

Glossary ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .293

Index ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .297

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Course OverviewSAP Project System supports comprehensive business processes for planning,controlling, and organizing all the activities carried out during the course of a project.It helps you manage your project structures, dates, costs, and resources throughoutthe entire project lifecycle. Course PLM200 provides you with an overview of theprocesses in SAP Project System.

Target AudienceThis course is intended for the following audiences:

� Project managers� Project team members� Consultants

Course PrerequisitesRequired Knowledge

� Knowledge of navigating in the SAP System� Basic knowledge of project management

Recommended Knowledge

� Completion of another mySAP ERP course

Course GoalsThis course will prepare you to:

� Discuss the basic business process of the SAP Project System for structuring,planning, executing, and monitoring projects

Course ObjectivesAfter completing this course, you will be able to:

� Use work breakdown structures, activities, and networks to structure projects� Discuss aspects of planning dates, resources, materials, costs, and revenues� Name the business processes used for budgeting

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Course Overview PLM200

� Explain aspects and processes used for executing projects� Explain various period-end closing activities in Project Management� Use analytics and reporting options for monitoring project data

SAP Software Component InformationThe information in this course pertains to the following SAP Software Componentsand releases:

� ERP 5.0

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Unit 1Introduction

Unit OverviewThis unit describes the general characteristics and structures of projects. Two businessexamples are introduced that will be used throughout the course to explain anddemonstrate the business processes of the SAP Project System (SAP PS).

Unit ObjectivesAfter completing this unit, you will be able to:

� Explain the characteristics of projects� Name the two structures used in SAP PS� Describe the project examples used in this course

Unit ContentsLesson: Introduction .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

Exercise 1: Preparations (to be carried out by instructor). . . . . . . . . . . . . . . . . . 11

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Unit 1: Introduction PLM200

Lesson: Introduction

Lesson OverviewThis lesson gives you a brief overview of the characteristics and phases typical to aproject. The two structures work breakdown structure and network, which are used inSAP Project System (SAP PS) for mapping projects, are also discussed. Both of thesestructures as well as basic functions and processes of SAP PS are described in thiscourse using two example projects. The business examples for these two projects areintroduced in this lesson.

Lesson ObjectivesAfter completing this lesson, you will be able to:

� Explain the characteristics of projects� Name the two structures used in SAP PS� Describe the project examples used in this course

Business ExampleTwo typical projects are used in this course to illustrate the business processes of theSAP Project System. �Elevator E-99##� is a typical investment project and is anexample of a project that is mapped using only a work breakdown structure. �TurbineSystem T-200##� is a sales project and is used to explain activities and networks.More information on these two example projects is provided in this lesson.

IntroductionBoth large-scale projects, such as constructing a factory, and smaller projects, suchas organizing a trade fair, require the numerous activities involved to be planned,controlled and monitored precisely, systematically, and efficiently. Professionalproject management is becoming an increasingly important factor for boosting thecompetitive strength of companies, and not just for those whose success is basedon project-oriented business processes. A project is an undertaking carried out bya company that is characterized by the uniqueness of its general conditions andconstraints. These conditions include the objectives of the project, the time framefor executing it, as well as financial and capacity-related restrictions. Projectsusually involve cross-departmental and highly complex business processes, theresults of which must often yield an extremely high level of quality. Projects areoften cost-intensive and time-consuming. A further crucial factor is their strategicimportance, which means that they can also represent a risk for the enterprise.

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PLM200 Lesson: Introduction

Figure 1: Project Characteristics

The term "project" is not specific to a particular industry sector and can, therefore,involve various aspects such as research and development projects, investmentmeasures, make-to-order production, and more extensive maintenance tasks. Projectsare normally given an appropriate structure to allow dates, resources, costs, budgetsand payments to be planned, controlled, and monitored transparently. Hierarchiesare often used for evaluating aggregated data, allocating budgets, and definingresponsibilities. Project-specific organizational forms are usually created for projectsthat are integrated in an enterprise�s business processes. These organizational formsare in a position central to the user departments involved so that all the tasks that occurwhen the project is executed can be properly controlled.

SAP Project SystemSAP Project System is a project management tool that assists you throughout all thephases of your project. Through the high level of integration between SAP ProjectSystem and other SAP application components, such as Procurement and Logisticsexecution, SAP Financials, and SAP Human Capital Management, the SAP ProjectSystem ensures that the necessary business processes are handled quickly andefficiently. The SAP Project System provides structures that allow you to map projects


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flexibly and with the appropriate structures. Using suitable tools and reports in SAPProject System, you can plan and monitor dates, costs, revenues, budgets, resources,materials, and so on, for these structures.

SAP PS is part of the Operations area of the mySAP Enterprise Resource Planning(mySAP ERP). mySAP ERP covers virtually all essential business processes withthe areas Operations, Financials, Human Capital Management, Corporate Services,and Analytics.

SAP PS is also part of the mySAP Product Lifecycle Management (mySAP PLM)Program and Project Management. Program and Project Management is a key areaof the enterprise solution mySAP PLM, that contains functions for product-relatedbusiness processes to support the initial idea for a product, the design and engineeringphases, the preparatory production processes and engineering change managementright through to the maintenance and service.

Figure 2: SAP Project System

The two structures provided by SAP Project System for mapping projects in SAP arework breakdown structures and networks. You use a work breakdown structure toorganize a project in the form of a hierarchy, and so map the structure of the project.Networks, on the other hand, are used to represent the individual project activitiestogether with their temporal and logical relationships, in other words, the flow of


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the project. You can map a project using just one work breakdown structure or onenetwork. You can, however, also represent a project using a work breakdown structureand one or more networks in order to use the characteristics of both structurestogether. Work breakdown structures consist of work breakdown structure elements(WBS elements) that are arranged at various levels to produce a hierarchical modelof the project activities to be carried out. Each individual WBS element can act asa controlling object in which you can plan and monitor costs, revenues, payments,budgets, and dates. A network represents the flow of a project. The individualtasks in the project are mapped as activities in a network. The temporal and logicaldependencies between the various activities can be represented as links, also knownas relationships. Activities form the operative basis for planning and controllingdates, costs, and resources (personnel, machinery, PRTs, materials). When activitiesare assigned to WBS elements, the dates and costs defined in the individual activitiesare totaled up (aggregated) at the WBS level, and can be evaluated. Activity fundsalready assigned are checked against the budgets of the WBS elements.

Figure 3: Structures

Two example projects explain how you can use the two structures, work breakdownstructure and network, when you are managing projects with SAP Project System.The various business processes they support are also described.


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Business ExamplesThe project with the ID E-99## (## stands for the number of the group a courseparticipant belongs to) is an example of an investment or cost project that can bemapped with just a work breakdown structure, that is, without networks or activities.You use the work breakdown structure in this business example to plan and monitorthe project for constructing an elevator in your company. Cost-related aspects areparticularly important as the project is being executed.

Figure 4: Investment Project E-99##

The following steps are carried out in this course for project E-99##:

1. Create a suitable work breakdown structure using the Project Builder2. Plan basic dates manually for WBS elements using the project planning board3. Plan costs manually for the WBS elements using Easy Cost Planning4. Budget WBS elements5. Enter actual dates during the project execution phase6. Assign various documents for WBS elements using Execution Services for

updating commitment and actual costs7. Calculate overhead costs and carry out settlement to assets under construction

in Asset Accounting using the Schedule Manager

Project Builder, project planning board, Easy Cost Planning, Execution Services, andSchedule Manager are tools in the SAP system that are used here to carry out thevarious steps. In addition to these tools, this course introduces you to a range ofreports and information systems that you can use to evaluate the project data duringthe various project phases.


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Project T-200## is used in this course as an example of a sales project that is mappedin the SAP system with a work breakdown structure and a network. The startingpoint for creating and executing the project in this business example is a customerinquiry and, later on, a sales order for constructing a turbine system. In addition toControlling-related aspects for developing and constructing the turbine system, it isalso important to consider a number of logistical requirements (on-time materialprocurement, availability of capacity). The network acts as a quantity structure forplanning dates, costs, resources, and material requirements automatically.

Figure 5: Sales Project T-200##


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The following steps are carried out in this course for project T-200##:

1. Create a customer inquiry in Sales and Distribution2. Create a project (work breakdown structure and network) using standard

structures3. Plan dates using scheduling4. Plan resources

� Plan capacity requirements� Distribute work among the workforce� Plan the external procurement of services

5. Plan materials by transferring bills of material6. Plan costs using network costing7. Create sales pricing data

� Create a quotation based on a project cost plan� Plan revenues for the project

8. Create a sales order with a billing plan in Sales and Distribution9. Enter confirmations (in particular, using the cross-application time sheet CATS)10. Purchase materials and services11. Document variances using claims12. Post revenues using milestone billing13. Calculate overhead costs, carry out a results analysis and settle the results

analysis values to the profitability segment

In this business example too, you will use suitable reports to track planned and actualdata (dates, resources, costs, revenues, and payments) that is written to the networkactivities. By assigning the activities to WBS elements, you can aggregate activitydata at work breakdown structure level and evaluate it.

In simplified terms, a project can generally be divided into the following phases:


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Figure 6: Phases in a Project

A high degree of precision is required when planning and coordinating large andcomplex projects. When planning the flow of a project, you will schedule deadlinesand dates, make resources available, and assign funds. SAP Project System gives youthe support you need throughout all phases of the project.


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Exercise 1: Preparations (to be carried outby instructor)

Exercise ObjectivesAfter completing this exercise, you will be able to:� Make the system settings required for the course (instructor only)

Business ExampleOriginal IDES data is used for structuring, planning and executing the exampleprojects. You also have to make a number of additional individual settings in theSAP System.

Task 1: Preparations (to be carried out by instructor)Check the parameters in the user master data and the settings in the SAP system thatare required for carrying out the demonstrations and exercises.

1. Check the user master records for the course participants. They should containsuitable parameters and fixed values.

2. In Customizing for Project System, set the Adjust Basic Dates indicator in the130000000001 IDES Scheduling Forward profile for WBS scheduling.

3. PS Cash Management must be activated in company code 1000 to ensure that thepayment data is updated. Check this setting in Customizing for Project System.

4. To carry out period-end closing using the Schedule Manager, you have tomaintain a prefix number for the SAP system (transaction OOW4).

Check workflow Customizing using transaction SWU3, and if necessary performautomatic workflow Customizing.

In the TVARV table, you have to enter suitable values for the parametersPS_PERIOD and PS_YEAR (transaction SM31). Make the appropriate settingsin the system.

5. Check the strategy group assigned to material T-20000.

Continued on next page


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Task 2: Language Settings (to be carried out byinstructor; only for courses not held in German)German is set as the original language for master data in the IDES systems. Forcourses held in other languages, the master data short texts need to be switchedto those languages.

Hint: The example shows the texts being converted to English (EN). Nochanges need to be made for courses held in German.

1. Set the short texts for standard networks and standard projects to EN usingtransaction YILA. Use the text pools ZT-TRAIN-PS-01, ZT-TRAIN-PS-02and ZT-TRAINING-PS-03.

2. Set the language for vendor 1000 to the required language (in our example,English). Use menu path Logistics→ Materials Management→ Purchasing→ Master Data→ Vendor→ Central→ Change(transaction code XK02) tochange the vendor data.

3. Set the language for customer 1600 to the required language (in our example,English). Use menu path Logistics→ Sales and Distribution→ Master Data→ Business Partner→ Customer→ Change→ Complete (transaction codeXD02) to change the customer data.


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Solution 1: Preparations (to be carried outby instructor)Task 1: Preparations (to be carried out by instructor)Check the parameters in the user master data and the settings in the SAP system thatare required for carrying out the demonstrations and exercises.

1. Check the user master records for the course participants. They should containsuitable parameters and fixed values.

a) Check the parameters for the participants using transaction SU01. Thefollowing parameters should be maintained:

Parameter Value TextBUK 1000 Company CodeCAC 1000 Controlling AreaPDB 130000000000 Profile for logical database

PSJPFL YIDES_130000 Profile for project information

systemWRK 1300 Plant

b) Set suitable fixed values for:

� Decimal places� Date format� Time zone

2. In Customizing for Project System, set the Adjust Basic Dates indicator in the130000000001 IDES Scheduling Forward profile for WBS scheduling.

a) In Customizing for the Project System, choose Tools→ Customizing→IMG→ SAP Reference IMG→ Project System→ Dates→ Date Planningin WBS→ Define Parameters for WBS Scheduling (Transaction codeOPTQ). Then display the details of the 130000000001 IDES SchedulingForward profile. Set the Adjust Basic Dates indicator and save yourchanges.



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3. PS Cash Management must be activated in company code 1000 to ensure that thepayment data is updated. Check this setting in Customizing for Project System.

a) In Customizing for the Project System, choose Tools→ Customizing→IMG→ SAP Reference IMG→ Project System→ Payments→ ActivateProject Cash Management in Company Code (Transaction code OPI6).The following setting is required:

CoCd FMA Actv.1000 1000 x

4. To carry out period-end closing using the Schedule Manager, you have tomaintain a prefix number for the SAP system (transaction OOW4).

Check workflow Customizing using transaction SWU3, and if necessary performautomatic workflow Customizing.

In the TVARV table, you have to enter suitable values for the parametersPS_PERIOD and PS_YEAR (transaction SM31). Make the appropriate settingsin the system.

a) Call up transaction OOW4. Check whether the table contains the trainingsystem and your client. If necessary, enter a new line with any number youlike ### (for example, 865), and your system and client number. Savethe data as a local object.

b) Check the standard settings for the workflow. To do so, call up transactionSWU3. The status (OK) should be displayed for all entries. If this isnot the case, perform automatic Customizing.

c) Call up transaction SM31 for maintaining tables. Enter table TVARV onthe selection screen. Call up the screen for maintaining the data. Changethe parameter values in accordance with the following table and saveyour changes.

Name ValuePS_PERIOD Current month

PS_YEAR Current year



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5. Check the strategy group assigned to material T-20000.

a) Logistics→ Material Management→ Material Master→ Material→Change→ Immediate (Transaction code MM02)

Enter material number T-20000

Select the MRP 3 view

Plant 1300

Make sure that the strategy group is �PS�.

Task 2: Language Settings (to be carried out byinstructor; only for courses not held in German)German is set as the original language for master data in the IDES systems. Forcourses held in other languages, the master data short texts need to be switchedto those languages.

Hint: The example shows the texts being converted to English (EN). Nochanges need to be made for courses held in German.

1. Set the short texts for standard networks and standard projects to EN usingtransaction YILA. Use the text pools ZT-TRAIN-PS-01, ZT-TRAIN-PS-02and ZT-TRAINING-PS-03.

a) Call up transaction YILA. If necessary, confirm the dialog box with themessage on the language switch. Enter the following data in the lowersection of the screen (Selection: Textpool):

Field ValueTarget Language EN

Text Pool ZT-TRAIN-PS-01

Select Update Short Texts.

Update the texts in text pools ZT-TRAIN-PS-02 and ZT-TRAINING-PS-03in the same way.



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2. Set the language for vendor 1000 to the required language (in our example,English). Use menu path Logistics→ Materials Management→ Purchasing→ Master Data→ Vendor→ Central→ Change(transaction code XK02) tochange the vendor data.

a) Call up transaction XK02. Enter the following data on the initial screen:

Field ValueVendor 1000

Company Code 1000

Purchasing Organization 1000

Address x

Confirm your entries with Enter. In the Language field, choose Englishand save your changes.

3. Set the language for customer 1600 to the required language (in our example,English). Use menu path Logistics→ Sales and Distribution→ Master Data→ Business Partner→ Customer→ Change→ Complete (transaction codeXD02) to change the customer data.

a) Call up transaction XD02. Enter the following data on the initial screen:

Field ValueCustomer 1600

Company Code 1000

Sales organization 1000

Distribution channel 10

Division 00

Confirm your entries with Enter. On the Address tab page, go to theLanguage field, choose English and save your changes.


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Lesson Summary

You should now be able to:� Explain the characteristics of projects� Name the two structures used in SAP PS� Describe the project examples used in this course


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Unit Summary PLM200

Unit SummaryYou should now be able to:� Explain the characteristics of projects� Name the two structures used in SAP PS� Describe the project examples used in this course

Related Information

� For more information about mySAP PLM and the various key areas of mySAPPLM, see the SAP Service Marketplace at service.sap.com/plm.

� For information about SAP ERP Central Component, see the SAP ServiceMarketplace at service.sap.com/erp.


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Unit 2Project Structures

Unit OverviewThe first step in planning a project involves creating the structural framework for allthe necessary activities and processes, and representing their actual structures andflows. SAP Project System provides two basic elements for mapping the structures ofprojects, namely work breakdown structures and networks. These structures form thebasis for all further steps involved in planning and executing the project. This unitdescribes how projects are structured using work breakdown structures and networks.


� Describe the tasks and structure of work breakdown structures� Use the Project Builder and hierarchy graphic to maintain work breakdown

structures� Describe the tasks and structure of networks� Use the Project Builder and network graphic to maintain networks� Assign PS texts, documents, and milestones� Use the mass change function� Name the functions of Open PS

Unit ContentsLesson: Work Breakdown Structure... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Exercise 2: Work Breakdown Structure .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Lesson: Activities and Networks .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Exercise 3: Activities and Networks ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Lesson: Milestones, Documents, and Tools.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Exercise 4: Milestones, Documents, and Mass Change ... . . . . . . . . . . . . . . . . 55


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Unit 2: Project Structures PLM200

Lesson: Work Breakdown Structure

Lesson OverviewProject E-99## is used as an example in this lesson to describe the structure and tasksof work breakdown structures. It also introduces you to the Project Builder, a tool thatis ideally suited to structuring projects.


� Describe the tasks and structure of work breakdown structures� Use the Project Builder and hierarchy graphic to maintain work breakdown

structures

Business ExampleIn order to plan and then execute the investment project �Elevator E-99##� in yourcompany, you will need a suitable work breakdown structure. Therefore, create awork breakdown structure using the Project Builder.

Structure and Function of Work Breakdown StructuresA work breakdown structure is a model of a project, and shows the project activities tobe carried out as a hierarchical structure. The various work packages in the project aredescribed in individual work breakdown structure elements (WBS elements). Youcan further divide these elements at various levels until you reach the level of detailyou require. The WBS elements are the objects that are actually used for planningand updating actual data. The focus here is on planning, controlling, and analyzingcosts, basic dates, and budgets. Because the work breakdown structure is structuredhierarchically, the data can be summarized and displayed for the correspondinghigher-level WBS elements. When you create a work breakdown structure, you alsohave to create a project definition. The project definition is a framework for all theobjects created within a project. The project definition contains data that affects theentire project (for example, start and finish dates, organizational data, and planningparameters). It contains default values that can be passed on to the WBS elements.The controlling area, which you specify when you create a project definition, is uniquefor the entire project. You specify it once you have created the project. You defineorganizational units such as company code, business area, profit center, and plant foreach WBS element. You can use the Project Builder or the project planning boardto create and change the project definition and work breakdown structure. You canedit projects in tabular or graphical mode.


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PLM200 Lesson: Work Breakdown Structure

Figure 7: Structure of Project E-99##

The work breakdown structure (WBS) forms the basis for all subsequent planningtasks in the project. The focus here is on planning, analyzing, describing, controlling,and monitoring costs, basic dates, and the budget. Costs, dates, and payments areoften planned using activities that are assigned to WBS elements. The �Tasks ofthe Work Breakdown Structure� figure shows the various functions that a workbreakdown structure can perform during a project.


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Figure 8: Tasks of the Work Breakdown Structure

Creating a Work Breakdown StructureThere are various ways of creating and editing a work breakdown structure. TheProject Builder is a clearly-structured tool in the SAP Project System (SAP PS) thatis extremely user-friendly and allows projects to be edited quickly and efficiently.You can use the Project Builder to maintain any object in SAP PS, except for theassignment of production resources and tools (PRT). Context-sensitive menus, Drag& Drop, and the option of defining your own worklist and set of templates help youedit your projects more easily. The Project Builder consists of a window dividedinto three areas: the structure overview is in the top left of the window, the worklistin the bottom left, and on the right is an area of displaying and editing data. Thestructure contains the selected project data of the current project with its hierarchicalrelationships. You use the worklist to store frequently-used projects, networks, andWBS elements on a user-specific basis. The worklist always displays a list of the lastfive projects edited. The templates are used as a set of proposals while a project isbeing edited from which you can incorporate new elements in the project and integratecopy templates. The work area displays a detail view of the selected object in thestructure and allows you to access the overviews of lower-level objects directly. Youuse the work area to edit the individual project elements. You can navigate betweenthe various views (detail views and overviews), graphics, and project planning boardquickly and efficiently in the Project Builder in order to maintain the structures.


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Figure 9: Project Builder

You use operative indicators to define the characteristics of a WBS element, and tospecify what tasks the WBS element will assume while the project is being executed:

� WBS elements for which you want to plan costs are flagged as planning elements.� WBS elements to which you want to post actual costs are flagged as account

assignment elements.� WBS elements for which you want to plan or post revenues are flagged as

billing elements.

Each WBS element is assigned its own company code. Since different companycodes can be assigned to the various WBS elements in a project, this means thatit is possible to process projects across companies. You can assign profit centers,business areas, persons responsible, partners (internal and external), and cost centersresponsible for the project to WBS elements. These assignments are used mainly forreporting purposes (see unit entitled �Reporting�). For example, this data allows youto analyze a large number of projects together by business area and person responsibleusing project summarization. You can also analyze the project key figures of severalprojects in your cost center hierarchy or profit center hierarchy. When documentsare assigned, the business area and profit center are derived from the correspondingWBS element. This information can be used later for reporting by business area orin profit center accounting. You can generate cost-center-based settlement rules forcosts projects. You can specify in the system that an E-mail should be sent to theperson responsible for the project entered in a WBS element if the budget is exceeded.You can also use SAP Partner Processing to assign customers, vendors, personnel


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numbers, system users, work centers, shipping points, HR organizational units, andother objects to WBS elements. When you do so, the system conducts checks againstexisting SAP master data.

Figure 10: Operative Indicators and Organizational Data

The �Maintenance Options� diagram shows different ways of creating and extendingwork breakdown structures. You can use the Project Builder to create and changeWBS elements. You can do this on detail screens or in the list of WBS elements. Youcan use the hierarchy graphic to change WBS elements (by double-clicking them).You can also create new WBS elements, and insert these in the hierarchy (connectmode). In addition to maintaining projects manually in the Project Builder or usingthe hierarchy graphic (1, 2), you can also use existing project structures or standardprojects as templates to copy from. When you create a new WBS, you can use anexisting WBS, a section of the project hierarchy, or a standard WBS as a template tocopy from. You can also incorporate WBS elements from other projects or from astandard WBS in an existing WBS (3, 4). Other transactions are available in additionto the Project Builder, for example the project planning board for creating and editinga WBS.


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Figure 11: Maintenance Options

You can analyze and edit the structure of the WBS in the hierarchy graphic. Forexample, you can create new WBS elements or cut and paste subtrees from thehierarchy. You can call up the hierarchy graphic in various functions of Project System(in the Project Builder or project planning board, for example, in cost planning,scheduling, budget management, or in the information system).


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Figure 12: Hierarchy Graphic


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Exercise 2: Work Breakdown Structure

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create and edit work breakdown structures using the Project Builder

Business ExampleYou are planning the construction of an elevator for your company. In order to planand then execute and monitor this investment project, you create a suitable workbreakdown structure using the Project Builder.

Hint: In the following exercises, ## indicates your group number (## = 01,02, and so on).

Task: Project E-99##Create a project E-99## in the Project Builder. Get to know the various ways ofcreating and editing work breakdown structures in the Project Builder.

1. In the Project System menu, start the Project Builder transaction and set thenecessary options so that you can see all 99 hierarchy levels of a project.

Create a project with the identification E-99## and description ElevatorGr## in the Project Builder. Use Investment Projects as the project profile. Inthe basic data for the project definition, enter the number ## for the personresponsible.

Use your right mouse button in the structure header to change the order in whichIdentification and Name are displayed. Save your project.

2. Open your project E-99## Elevator Gr## in the Project Builder. So far, youhave only created a project definition. In the WBS Element Overview, createWBS elements with the identifications (and descriptions) E-99## (ElevatorGr##), E-99##-1 (Engineering), E-99##-1-1 (ElectricalEngineering) and E-99##-1-2 (Mechanical Engineering). Toavoid making any mistakes when entering your data, use the @ entry aid. Theaccount assignment element operative indicator (Acct column) is to be set for allWBS elements. Flag WBS elements E-99## and E-99##-1 as planning elementsas well (PE column).



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3. Create further WBS elements for your project E-99## in the Project Builderusing a template to copy from. In this way, you can put the experience gainedfrom past projects to use in your current project. In the structure underneath theWBS element E-99##, insert further WBS elements. Use the context menu inthe structure (right-hand mouse button) to do this and not the templates area.Use the subtree E-1001-2 of a standard work breakdown structure to copyfrom. WBS element E-1001-2 (root) is also to be inserted underneathWBSelement E-99## and to the right of WBS elements that have already beenassigned. Make sure that you do not insert any activities.

Next derive the hierarchical structure of your work breakdown structure fromthe numbers of the WBS elements.

Finally, adjust the data of the new WBS elements to the requirements of yourcurrent project. To do this, assign the person responsible ## and investmentprofile 1000 to all new WBS elements.

4. Use Drag & Drop to create a new WBS element E-99##-3 with the nameAssembly underneath WBS element E-99## Elevator Gr##. Set the operativeindicators of the new WBS element in such a way that you can plan costs andpost them to this WBS element later on.

Analyze the hierarchical structure and operative indicators of the WBS elementsin your project in the hierarchy graphic. If necessary, set the operative indicatorsin such a way that only the WBS elements at levels 1 and 2 allow costs to beplanned.

In the hierarchy graphic, create a new WBS element with the identificationE-99##-4 and the name Acceptance. Assign this WBS element underneathWBS element E-99## in connect mode. In the hierarchy graphic, set thePlanning Element operative indicator for the new WBS element.

Then save your project.

5. Optional: Answer the following questions on project E-99##:

Which controlling area is project E-99## assigned to?

How many levels does the work breakdown structure of project E-99## contain?

For which WBS elements can you plan revenues?


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Solution 2: Work Breakdown StructureTask: Project E-99##Create a project E-99## in the Project Builder. Get to know the various ways ofcreating and editing work breakdown structures in the Project Builder.

1. In the Project System menu, start the Project Builder transaction and set thenecessary options so that you can see all 99 hierarchy levels of a project.

Create a project with the identification E-99## and description ElevatorGr## in the Project Builder. Use Investment Projects as the project profile. Inthe basic data for the project definition, enter the number ## for the personresponsible.



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Use your right mouse button in the structure header to change the order in whichIdentification and Name are displayed. Save your project.

a) In the SAP menu, go to the Project System folder and open the ProjectBuilder. Choose SAP Menu→ Accounting→ Project System→ Project→ Project Builder.

If you are opening the Project Builder for the first time, two dialog boxesappear. Set the Skip this in future indicator in the first dialog box andconfirm this with Enter. In the next dialog box for user-specific options,set the number of hierarchy levels displayed for a project to 99 and confirmthis with Enter.

Hint: You can change the user-specific options in the ProjectBuilder whenever you need to. To do so, choose Settings→Options in the Project Builder menu bar.

b) To create a project, choose Create Project. Enter the following datafor the project definition:

Field Name ValuesProject Definition E-99##

Text (without caption) Elevator Gr##

Project Profile Investment Projects

Confirm your entries with Enter. The project definition is shownin the structure.

Position your cursor on the header of the structure. To change the displaysequence, click the right-hand mouse button and choose Display Sequence→ Identification - Name.

On the Basic Data tab page of the project definition, enter ## for the personresponsible and confirm your entry with Enter.

Save your project.

2. Open your project E-99## Elevator Gr## in the Project Builder. So far, youhave only created a project definition. In the WBS Element Overview, createWBS elements with the identifications (and descriptions) E-99## (ElevatorGr##), E-99##-1 (Engineering), E-99##-1-1 (ElectricalEngineering) and E-99##-1-2 (Mechanical Engineering). To



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avoid making any mistakes when entering your data, use the @ entry aid. Theaccount assignment element operative indicator (Acct column) is to be set for allWBS elements. Flag WBS elements E-99## and E-99##-1 as planning elementsas well (PE column).

a) You are still in the Project Builder. The project you created earlier isdisplayed in the worklist under Last Projects Processed. To open yourproject, double-click the project E-99## Elevator Gr##. Switch fromthe detail data of the project definition to the WBS Element Overview .Enter the following data � if this is not defaulted by the system � in thetable (to set the operative indicators, scroll to the right in the table):

Level WBSElement

Description PE Acct

1 @ Elevator Gr## x x

1 @1 Engineering x x

1 @11 ElectricalEngineering

x

1 @12 MechanicalEngineering

x

To create the WBS elements, choose Enter. The WBS elements are nowdisplayed underneath the project definition in the structure.

3. Create further WBS elements for your project E-99## in the Project Builderusing a template to copy from. In this way, you can put the experience gainedfrom past projects to use in your current project. In the structure underneath theWBS element E-99##, insert further WBS elements. Use the context menu inthe structure (right-hand mouse button) to do this and not the templates area.Use the subtree E-1001-2 of a standard work breakdown structure to copyfrom. WBS element E-1001-2 (root) is also to be inserted underneathWBSelement E-99## and to the right of WBS elements that have already beenassigned. Make sure that you do not insert any activities.

Next derive the hierarchical structure of your work breakdown structure fromthe numbers of the WBS elements.



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Finally, adjust the data of the new WBS elements to the requirements of yourcurrent project. To do this, assign the person responsible ## and investmentprofile 1000 to all new WBS elements.

a) Project E-99## is still open in the Project Builder. Select WBS element(not the project definition) E-99## Elevator Gr## in the structure. Toinclude WBS elements, click the right-hand mouse button and chooseInclude→ WBS Elements.

A dialog box then appears. Choose Standard WBS and enter the followingdata:

Field Name ValuesBelow E-1001-2

With Root x

Right x

Without Activities x !!!

Confirm your entries with Include. A subtree containing WBS elementsfor procurement is assigned to WBS element E-99##.

b) To derive the structure from the numbers of the WBS elements, chooseProject→ Derive Structure→ Execute.

In the structure, select WBS element E-99##-2 Procurement and onthe detail screen of the WBS element, go to the Basic Data tab pageand enter ## for the person responsible. On the Control tab page, enter1000 in the Investment Profile field. Assign the person responsible ##and investment profile 1000 to WBS elements E-99##-2-1, E-99##-2-2and E-99##-2-3 in the same way.

4. Use Drag & Drop to create a new WBS element E-99##-3 with the nameAssembly underneath WBS element E-99## Elevator Gr##. Set the operativeindicators of the new WBS element in such a way that you can plan costs andpost them to this WBS element later on.

Analyze the hierarchical structure and operative indicators of the WBS elementsin your project in the hierarchy graphic. If necessary, set the operative indicatorsin such a way that only the WBS elements at levels 1 and 2 allow costs to beplanned.



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In the hierarchy graphic, create a new WBS element with the identificationE-99##-4 and the name Acceptance. Assign this WBS element underneathWBS element E-99## in connect mode. In the hierarchy graphic, set thePlanning Element operative indicator for the new WBS element.

Then save your project.

a) Project E-99## is still open in the Project Builder. Use Drag & Drop todrag a WBS Element from the templates area (under Individual Objects)to WBS element E-99## Elevator Gr## at the top of the hierarchy.Enter the following data on the detail screen of the WBS element:

Field Name ValuesWBS Element E-99##-3

Text (without caption) Assembly

Planning Element x

Confirm your entries with Enter. The WBS element is displayedin the structure.

b) To call up the hierarchy graphic, choose Hierarchy Graphic. Sinceyou do not want to plan costs for level - 3 WBS elements E-99##-2-1,E-99##-2-2 and E-99##-2-3, deselect the Planning Element operativeindicator for these WBS elements. To do this, double-click the Plan field inthe hierarchy graphic. The WBS elements are then no longer flagged asplanning elements.

To create a new WBS element, choose Create. An input area appearsunderneath the display area. Select the WBS element in this input area(click it once). The shape of the cursor changes (box-shaped). Click a freespace in the display area. A dialog box appears with the detail screen ofthe new WBS element. Enter the following data:

Field Name Values

WBS Element E-99##-4

Text (without caption) Acceptance

Confirm your entries with Back. The new WBS element is displayed inthe display area at level 1.



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To start connect mode, choose Connect. The shape of the cursorchanges (pencil). Keeping your finger down on the left-hand mouse button,draw a line from E-99## to E-99##-4. To deactivate the connect mode,click a free space in the display area.

If you have not yet set the Planning Element operative indicator on thedetail screen of WBS element E-99##-4, double-click the appropriate Planfield of the WBS element in the display area. The operative indicatoris now set.

To save the changes you have made to your project, choose Back andSave.

5. Optional: Answer the following questions on project E-99##:

Which controlling area is project E-99## assigned to?

How many levels does the work breakdown structure of project E-99## contain?

For which WBS elements can you plan revenues?

a) To answer the questions, open project E-99## in the Project Builder. Toopen the project, double-click project E-99## Elevator Gr## in theworklist.

You specify the controlling area on the Basic Data tab page of the projectdefinition when you create the project. In your project, the value 1000 (COEurope) is entered in the CO Area field in the project definition. The valuewas entered as a default value in the project profile.

The work breakdown structure comprises three levels. You can see thesein the structure on the left of the Project Builder or in the hierarchygraphic. The number of levels is also indicated in the tabular WBS elementoverview in the Level column.

Project E-99## is a pure cost project. This means that none of the WBSelements in your project is flagged as a billing element. You cannot,therefore, plan revenues for any WBS element.

If necessary, close your project with Back.


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Lesson Summary

You should now be able to:� Describe the tasks and structure of work breakdown structures� Use the Project Builder and hierarchy graphic to maintain work breakdown

structures


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Lesson: Activities and Networks

Lesson OverviewThis lesson looks at the structure and function of networks. The tasks performed bythe various activities in a network are described using project T-200## as an example.


� Describe the tasks and structure of networks� Use the Project Builder and network graphic to maintain networks

Business ExampleA customer inquiry regarding the construction of a turbine system is entered in theSales & Distribution department of your company. To create a quotation for thisinquiry, you create a project called �Turbine System T-200##� using a suitabletemplate to copy from. You then adapt the network to the specific requirements ofthe project.

Structure and Function of NetworksNetworks map the flow of the project. The focus here is on describing, planning,controlling, and analyzing costs, scheduled dates, resources, and materialrequirements. The basic elements that go to make up a network include activities andrelationships that describe the tasks and temporal dependencies between the varioustasks in a project. SAP Project System supports the following activity categories:

� Internal processing: for capacities to be staged in your own company� External processing: for tasks to be assigned externally� Service activities: for procuring external services� Costs: for planning additional primary costs

Activities are linked to each other by means of relationships - this results in a causaland temporal activity sequence. In this way, networks form a quantity structure forplanning dates (automatically via scheduling), costs (automatically via costing),resources (internal activities and external services), and for planning materialrequirements (by means of assigned components). You can create activities andmaintain the data for them in the Project Builder and project planning board, forexample. In the Project Builder, you create activities for WBS elements. This meansthat the activities are assigned to the WBS elements in question. It also means that


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PLM200 Lesson: Activities and Networks

the planned and actual data for the activities (dates, costs, payment data) can beaggregated at WBS element level. A network always includes a network header thatcontains the control data and default values for the entire network.

Figure 13: Structure of Project T-200##

You use the activities in the network to plan the labor, capacities, materials, tools,and services you require to carry out various tasks in your project. By assigningmilestones to activities, you can document events that are particularly important forthe progress of the project and reference their respective dates in billing or invoicingplans, for example. During the project execution phase, commitment and actual costsare updated automatically to the network activities as a result of various businesstransactions (for example, confirmations, ordering processes, goods issues, incominginvoices). Key functions of networks and activities are shown in the �Tasks of theNetwork� diagram.


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Figure 14: Tasks of the Network

Creating NetworksThe following diagram illustrates the various ways in which networks and activitiescan be created and edited.


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Figure 15: Maintenance Options

In addition to maintaining data manually and in the network graphic (1, 2), you canalso use existing operative structures or standard structures as templates to copy from.When you create activities, you can use a standard network or an existing networkas a template to copy from (3). You can also incorporate standard networks in anexisting network (4). Using the Project Builder or the project planning board, you cancopy a standard project or existing operative project (including all of its activities)to a new project structure (5).


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Figure 16: Network Structure Graphic

All of the functions you need to create or change a network are available in thenetwork graphic (the functions for inserting activities or relationships, for example).You can access the network graphic from various functions in Project System (theProject Builder, project planning board, or the information system, for example).The cycle analysis is a function that you can only perform in the network graphic.A cycle is a closed sequence of relationships and activities ("closed" means that,when you start out from an activity, you end up back at the same activity, by way ofrelationships). If the activity-relationship-activity path is cyclical, you will not be ableto schedule the network. Cycle analysis is a tool that enables you to detect cyclicalrelationships, and correct them.


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Exercise 3: Activities and Networks

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create projects in the Project Builder using a template� Edit networks in the Project Builder

Business ExampleYou want to create a project for constructing a turbine system. The planned data fromthis project will be used later to create a quotation. To put the experience gainedfrom past projects to use and to enable these projects to be compared more easily,use standard structures as templates when you create your project. Then adapt theoperative structures to the specific requirements of the current project.


Task: Project T-200##Create a project called T-200## in the Project Builder. Get to know the various waysof editing networks in the Project Builder.

1. In the Project Builder, use a template to create a project with the identificationT-200## and description Turbine Gr##. Use the standard projectT-20001 as a template and Turbine Model Group 1 as the project profile. Makesure that any assigned activities are also copied. The start date for your project istoday. The finish date is one year later. Save project T-200##.

2. Open project T-200## Turbine Gr## in the Project Builder. Assign to the WBSelement T-200##.1 Engineering and Design the following three activities:

Some of the engineering work for the rotating blades of the turbine is to beoutsourced to an engineering company. Create an externally processed activity1400 for this with the description Engineering of Rotating Blades.Use purchasing info record 5500000093.

Employees in your company are to perform a quality check on the outsourcedengineering work. Create an internally processed activity 1500 for this withthe description Quality Check on Rotating Blades. Plan 10 hourswork at work center 2400 and a duration of 2 days for performing the check.



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Use costs activity 6000 with the description Service to plan additional costsamounting to EUR 4,000 for cost element 466000.

Assign this new cost activity 6000 Service using Drag & Drop to WBS elementT-200##.5 Assembly Processing.

3. You have not yet created any temporal relationships between the activitiesyou have created and other activities in your network. Create the followingrelationships:

In the Relationship Overview of the Project Builder, first create an FSrelationship from activity 5000 Assembly and Test Run to activity 6000 Service.

Then call up the network graphic and select the appropriate view. Choose justthe display area, for example, and select the appropriate view for the activities.In connect mode, create FS relationships between activities 1000 and 1400,1400 and 1500, as well as 1500 and 4000.

Plan material costs for components that you will not assign to the activitiesuntil later on. On the Assignments tab page, enter EUR 150,000 and EUR135,000 as material planning values in activities 3000 Preliminary Orders and3100 Material Procurement Plant Components.

Save the changes you have made to the project.

4. Optional: Answer the following questions on the network and activities inyour project T-200##:

Which number is entered in your network for the MRP controller responsible?

In which internally processed activity in your project has a work center notbeen maintained?

Which purchasing group is responsible for purchasing the external service thatyou planned using activity 1400 Engineering of Rotating Blades?


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Solution 3: Activities and NetworksTask: Project T-200##Create a project called T-200## in the Project Builder. Get to know the various waysof editing networks in the Project Builder.

1. In the Project Builder, use a template to create a project with the identificationT-200## and description Turbine Gr##. Use the standard projectT-20001 as a template and Turbine Model Group 1 as the project profile. Makesure that any assigned activities are also copied. The start date for your project istoday. The finish date is one year later. Save project T-200##.

a) In the SAP menu, go to the Project System folder and open the ProjectBuilder. Choose SAP Menu: Logistics→ Project System→ Project→Project Builder.

To create a project using a template, choose Create Copy Project. Enterthe following data in the dialog box:

Field Name ValuesProject Definition T-200##

Description Turbine Gr##

Start Today’s date

Finish Date Today + 1 year

Project Profile Turbine Model Group ##

Template Std. proj. def. T-20001

Leave other fields as they are

The With Activities indicator should be set. Confirm your entries and anywarnings that appear regarding the finish date with Enter.

Hint: In the structure, you can now see various objects that werecopied from the standard project:

� Project definition� WBS elements� Network header (with the provisional number, for

example, %00000000001)



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� Activities� Milestone

Save your project.

2. Open project T-200## Turbine Gr## in the Project Builder. Assign to the WBSelement T-200##.1 Engineering and Design the following three activities:

Some of the engineering work for the rotating blades of the turbine is to beoutsourced to an engineering company. Create an externally processed activity1400 for this with the description Engineering of Rotating Blades.Use purchasing info record 5500000093.

Employees in your company are to perform a quality check on the outsourcedengineering work. Create an internally processed activity 1500 for this withthe description Quality Check on Rotating Blades. Plan 10 hourswork at work center 2400 and a duration of 2 days for performing the check.

Use costs activity 6000 with the description Service to plan additional costsamounting to EUR 4,000 for cost element 466000.

Assign this new cost activity 6000 Service using Drag & Drop to WBS elementT-200##.5 Assembly Processing.

a) You are still in the Project Builder. The project you created earlier isdisplayed in the worklist under Last Projects Processed. To open yourproject, double-click T-200## Turbine Gr##.

Hint: If the system does not display all levels, fully expand thestructure . To avoid having to carry out this step, you can entera suitable value in the Project Builder options for the number ofhierarchy levels to be displayed (Settings→ Options).

In the structure, select WBS element T-200##.1 Engineering andDesign. To create an externally-processed activity for this WBS element,go to the template area and choose External Processing (underIndividual Objects→ Activity). Enter the following data on the detailscreen of the activity:



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Field Name ValuesActivity 1400

Text (without caption) Engineering of Rotating Blades

Info Record 5500000093


Choose Enter to confirm your entries and that purchasing data shouldbe read from the purchasing info record. The activity is created andis displayed in the structure underneath WBS element T-200##.1Engineering and Design.

b) In the structure, select WBS element T-200##.1 Engineering andDesign again. To create an internally-processed activity for this WBSelement, go to the template area and double-click Internal Processing.Enter the following data on the detail screen of the activity:


Text (without caption) Quality Check on RotatingBlades

Work Center 2400

Work 10 HRNormal Duration 2 DAY


Confirm your entries with Enter.

c) In the structure, select WBS element T-200##.1 Engineering andDesign again. To create a costs activity for this WBS element, go to thetemplate area and double-click Costs. Enter the following data on thedetail screen of the activity:



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Text (without caption) Service

Amount 4,000 EURLeave other fields as they are

Confirm your entries with Enter. The activity is displayed in thestructure underneath WBS element T-200##.1 Engineering and Design.

To assign the costs activity to WBS element T-200##.5 AssemblyProcessing, select activity 6000 Service in the structure, and holdingthe left-hand mouse button down, drag it to WBS element T-200##.5Assembly Processing.

3. You have not yet created any temporal relationships between the activitiesyou have created and other activities in your network. Create the followingrelationships:

In the Relationship Overview of the Project Builder, first create an FSrelationship from activity 5000 Assembly and Test Run to activity 6000 Service.

Then call up the network graphic and select the appropriate view. Choose justthe display area, for example, and select the appropriate view for the activities.In connect mode, create FS relationships between activities 1000 and 1400,1400 and 1500, as well as 1500 and 4000.

Plan material costs for components that you will not assign to the activitiesuntil later on. On the Assignments tab page, enter EUR 150,000 and EUR135,000 as material planning values in activities 3000 Preliminary Orders and3100 Material Procurement Plant Components.

Save the changes you have made to the project.



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a) Project T-200## Turbine Gr## is still open in the Project Builder. Youhave already selected activity 6000 Service in the structure. To createa relationship for activity 5000 Assembly and Test Run in tabular mode,choose Relationship Overview. In the Activity Selection area, selectactivity 5000 Assembly and Test Run and choose Create Relationship.

Hint: You can restrict the number of activities listed in ActivitySelection by entering suitable criteria, such as activity number oractivity short text. Alternatively, you can enter the activity numberdirectly in the list of relationships and create the relationship inthis way.

The activity number appears in the list of relationships. The Scs (successor)indicator is not set. This means that activity 5000 Assembly and Test Runis the predecessor of activity 6000 Service. FS (finish-start) is enteredas the type of relationship.

b) To call up the network graphic, choose Network Graphic. In the networkgraphic, choose Settings→ View→ Display and then Complete View. Ifnecessary, select the appropriate view for the activities. To do so, chooseActivities... and then small in the dialog box for the activity display.

To create relationships in graphical mode, choose Connect. The shapeof the cursor changes (pencil). Holding the left-hand mouse button down,draw a line from the end of activity 1000 (predecessor) to the start ofactivity 1400 (successor). An FS relationship is then created betweenactivities 1000 and 1400. Repeat this procedure to create FS relationshipsbetween activities 1400 and 1500 and 1500 and 4000. You can deactivateconnect code by clicking a free space in the display area.

If necessary, adjust the complete graph. To do so, choose Adjust....Then confirm the selected option Adjust Complete Graph with Enter.

c) To plan material costs, call up the detail screen of activity 3000 PreliminaryOrders. To do so, double-click activity 3000 in the network graphic.Choose Assignments and enter 150,000 in the Material Planning field.To return to the network graphic, choose Back. Repeat this procedure toplan 135,000 for activity 3100 Material Procurement Plant Components.

To exit the network graphic, choose Back. If necessary, confirm theprompt asking you if you want to save the node items by choosing Yes. Tosave the changes you have made to project T-200##, choose Save.



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4. Optional: Answer the following questions on the network and activities inyour project T-200##:

Which number is entered in your network for the MRP controller responsible?

In which internally processed activity in your project has a work center notbeen maintained?

Which purchasing group is responsible for purchasing the external service thatyou planned using activity 1400 Engineering of Rotating Blades?

a) To answer the questions, open project T-200## in the Project Builder. Toopen the project, go to the worklist (under Last Projects Processed) anddouble-click the project T-200## Turbine Gr##.

You can find the number of the MRP controller responsible on the Controltab page of the network header . The value 101 PP is defined for yournetwork.

To display a list of all the activities in your network, choose the networkheader in the structure and then Activity Overview. On the InternalProcessing tab page, all the internally-processed activities are listed in atable. No work center has been maintained for activity 4000 Productionof Running Gear, Bearing, Valves. The activity is currently only usedfor planning dates. Later on, you will assign material components tothe activity and then trigger the manufacturing process for materials inproduction.

Go to the External Processing tab page in the activity overview. In thePurchasing Group column (scroll the list to the right), you can see the value001 for the purchasing group of activity 1400 Engineering of RotatingBlades. This purchasing group was copied from the purchasing info record.

If necessary, close your project with Back.


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Lesson Summary

You should now be able to:� Describe the tasks and structure of networks� Use the Project Builder and network graphic to maintain networks


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Lesson: Milestones, Documents, and Tools

Lesson OverviewThis lesson describes various objects that you can assign to WBS elements andactivities that are used for information and analysis purposes and for controllingprocesses. The mass change function discussed in this lesson is a tool you can use tochange large volumes of project data very quickly. Open Project System (Open PS) isintroduced as the tool for exchanging data with Microsoft Project.


� Assign PS texts, documents, and milestones� Use the mass change function� Name the functions of Open PS

Business ExampleA number of texts and other documents (such as CAD drawings) are important forexecuting the project later on. You assign these documents to project T-200##. Usingmilestones, you can plan dates for subsequent billing. A mass change function isavailable for changing large volumes of data in your project.

PS Texts, Documents, and MilestonesProject System texts are user-definable texts that are managed in a PS text catalog.The texts are grouped according to text type and can be created in several differentlanguages. You can create PS texts in SAPScript format or using Microsoft Word. Thefiles in question are stored in the SAP database. You can assign PS texts to one ormore WBS elements or activities.

You can use the SAP Document Management System in Project System toassign document info records to WBS elements and activities. In the DocumentManagement System, you can assign original (external) documents in various formats(XLS (Microsoft Excel), DOC, PPT, BMP, TIF, CAD formats, and so on) to an(SAP-internal) document info record. In SAP Project System (SAP PS), you candisplay the document info records and the corresponding original documents online.You can also display the original documents using the Internet.


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PLM200 Lesson: Milestones, Documents, and Tools

You can assign milestones to activities and WBS elements and document eventsthat are particularly important in a project. Milestones have a range of applications.They can be used for milestone billing in SD, for example, to start workflow tasks, orto release activities that are yet to be carried out. They can also be used purely forinformation purposes or for analyses in various reports.

Figure 17: PS Texts, Documents, Milestones

Mass ChangeYou can use the mass change function to make cross-project changes to fieldspertaining to project definitions, WBS elements, networks, activities, andrelationships. The same authorization objects as for individual changes are used formass changes. You can use formula values for numeric fields instead of field valuesor fixed values. For example, in selected activities, you can double the values inthe Work field or replace them with a different calculated value without having themake the changes for the individual activities manually. You can test the extentof your changes before you actually make a mass change. Remember that, if youmake a mass change, this might mean that a large number of objects will be changedsimultaneously. In many cases, you cannot undo the changes made. For this reason,always be particularly careful when you use this transaction.


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Figure 18: Mass Change

Open PSOpen PS is the component that handles communication between SAP PS and otherproject management systems or personal organizers. Open PS is based on the open PSinterface PS-EPS (Interface to External Project Software) and has used standardizedBAPI technology (BAPI=Business Application Programming Interface) since EPS4.0. You can develop your own interfaces based on PS-EPS. With Open PS, however,SAP provides its own interface solution for exchanging data with Microsoft Project.Open PS allows you to exchange data directly with Microsoft Project in a numberof different ways:

� Create a project in Microsoft Project from the SAP project� Transfer a project from Microsoft Project to SAP PS� Harmonize data from a project in Microsoft Project with a project in SAP PS

Open PS is not an integral component of the mySAP ERP Central Component; it isavailable as an add-on to SAP PS. For more information about Open PS and thesoftware required for installing it, see the home page for Project System on the SAPService Marketplace at service.sap.com/ps.


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Figure 19: Open PS


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Exercise 4: Milestones, Documents, andMass Change

Exercise ObjectivesAfter completing this exercise, you will be able to:� Create milestones in the Project Builder� Create PS texts and assign documents� Use the mass change function in the Project Builder

Business ExampleTo be able to plan billings dates later on, create an additional milestone in customerproject T-200##. Use PS texts and documents from Document Management todocument the project. Maintain a person responsible for all the WBS elements in yourproject in one single step using the mass change function.


Task: Extending Project T-200##Extend project T-200##, which you created earlier, in the Project Builder to includemilestones, PS texts, and documents. Use the mass change function for moreextensive changes.

1. Open project T-200## in the Project Builder. Assign a milestone with thedescription Partial Invoice 30% and usage PS01 to activity 4000Production of Running Gear, Bearing, Valves. You want the milestone date to bedetermined from the earliest finish date for the activity and to be able to use it ina sales document to plan revenues (billing percentage: 30 %).

2. In the PS text overview, create a PS text Specification Gr## with texttype 01 (Function Description) and format 2 (DOC Format) for the WBSelement at the top of project T-200##. Enter a text of your choice for specifyingthe turbine system.

Assign documents from Document Management to the same WBS elementin the document overview. Use document type DRM as the key, the numberPS-TUR-001-00001, the document part 000, and version number 00. Savethe changes you have made to the project.



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Caution: The participant groups block each other when assigningdocuments. For this reason, each group should complete this step asquickly as possible.

3. Open project T-200## again and display an original document of the documentyou assigned earlier in the Project Builder.

Optional: Call up the document info record of the document from the ProjectBuilder.

4. Use the mass change function in the Project Builder to assign to assign theperson responsible with the number ## to all the WBS elements in projectT-200##. Save the changes you have made to the project.


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Solution 4: Milestones, Documents, andMass ChangeTask: Extending Project T-200##Extend project T-200##, which you created earlier, in the Project Builder to includemilestones, PS texts, and documents. Use the mass change function for moreextensive changes.

1. Open project T-200## in the Project Builder. Assign a milestone with thedescription Partial Invoice 30% and usage PS01 to activity 4000Production of Running Gear, Bearing, Valves. You want the milestone date to bedetermined from the earliest finish date for the activity and to be able to use it ina sales document to plan revenues (billing percentage: 30 %).

a) In the SAP menu, go to the Project System folder and open the ProjectBuilder. Choose SAP Menu→ Logistics→ Project System→ Project→ Project Builder.

To open your customer project, go to the worklist (under Last ProjectsProcessed) and double-click the project T-200## Turbine Gr##. Ifnecessary, expand the entire project structure .

Use Drag & Drop to drag a milestone from the templates area (underIndividual Objects) to activity 4000 Production of Running Gear, Bearing,Valves. Enter the following data on the detail screen of the milestone:

Field Name ValuesMilestone (text) Partial Invoice 30%

Usage PS01 Partial Billing (Deb.)Usage Sales DocumentDate

x

Invoice Percentage 30 %Offset to Activity Offset toFinish

x


Confirm your entries with Enter. The milestone is displayed in thestructure under activity 4000 Production of Running Gear, Bearing,Valves.



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2. In the PS text overview, create a PS text Specification Gr## with texttype 01 (Function Description) and format 2 (DOC Format) for the WBSelement at the top of project T-200##. Enter a text of your choice for specifyingthe turbine system.

Assign documents from Document Management to the same WBS elementin the document overview. Use document type DRM as the key, the numberPS-TUR-001-00001, the document part 000, and version number 00. Savethe changes you have made to the project.



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Caution: The participant groups block each other when assigningdocuments. For this reason, each group should complete this step asquickly as possible.

a) Project T-200## is still open in the Project Builder. In the structure, selectWBS element T-200## Turbine and choose PS Text Overview. Enterthe following data in the table overview for the PS texts:

Field Name ValuesST (Text Type) 01 Function DescriptionDescription Specification Gr##

T (Format) 2 DOC FormatTT(Language) EN for English Language

Confirm your entries with Enter. The editor for DOC format thenappears. Enter a text of your choice and choose Save.

b) To assign documents from Document Management to the same WBSelement, go from the PS text overview to the document overview. To doso, choose Document Overview. Enter the following data in the tableoverview:

Field Name ValuesType DRM

Document PS-TUR-001-00001

DPt (Document Part) 000

VS (Document Version) 00

Confirm your entries with Enter. Save your changes by choosingSave.

3. Open project T-200## again and display an original document of the documentyou assigned earlier in the Project Builder.



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Optional: Call up the document info record of the document from the ProjectBuilder.

a) To open your project, go to the worklist and double-click projectT-200## Turbine Gr##. If necessary, expand the entire project structure.In the structure, the PS text Specification GR## and the documentDRM PS-TUR-001-00001 00 000 are displayed underneath WBS elementT-200## Turbine.

To display the assigned original documents, expand the document DRMPS-TUR-001-00001 00 000 in the structure. Select original documentJT Pump Assembly in the structure and choose Display Original.

Hint: The system may request you to select the frontend type.Choose PC with Windows. You can only display the JT file if theSAP GUI (including the EAI Viewer) has been fully installedon your frontend.

To view the entire object displayed in the CAD drawing, you can use thecursor to rotate it in any direction.

b) Optional: To display the document info record, select the documentDRM PS-TUR-001-00001 00 000 in the structure and choose Details.The document info record contains further information on the document.To return to the Project Builder, choose Back.

4. Use the mass change function in the Project Builder to assign to assign theperson responsible with the number ## to all the WBS elements in projectT-200##. Save the changes you have made to the project.

a) Project T-200## is still open in the Project Builder. In the structure, selectthe project definition T-200## Turbine Gr##. To execute the masschange, choose Mass Change. In the dialog box that appears, chooseWBS Elements.

A further dialog box appears in which you can choose the fields you wantto change. In the Pool, select the line Person Responsible and copy thefield to your selection criteria with Choose. Confirm your selectionwith Enter.

Enter your group number ## in the Person Responsible: New Value fieldand start the mass change with Execute.

A log appears that lists all of the changes made. To exit the log display andto save the changes, choose Back and Save.


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Lesson Summary

You should now be able to:� Assign PS texts, documents, and milestones� Use the mass change function� Name the functions of Open PS


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Unit Summary PLM200

Unit SummaryYou should now be able to:� Describe the tasks and structure of work breakdown structures� Use the Project Builder and hierarchy graphic to maintain work breakdown

structures� Describe the tasks and structure of networks� Use the Project Builder and network graphic to maintain networks� Assign PS texts, documents, and milestones� Use the mass change function� Name the functions of Open PS


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Unit 3Analytics and Reporting

Unit OverviewDuring the course of a project, a large volume of data is generated that has tobe prepared efficiently, transparently, and comprehensively to satisfy the variousinformation analysis and reporting requirements of the project team membersthroughout all phases of the project. This unit looks at the various options forevaluating and analyzing project data.


� List various reporting options for project-specific data� Name the functions of the structure information system and cost reports

Unit ContentsLesson: Reporting .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Exercise 5: Project Information System ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77


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Unit 3: Analytics and Reporting PLM200

Lesson: Reporting

Lesson OverviewThis lesson gives you an overview of the various reporting options available forproject-specific data. It also introduces you to the structure information system and anumber of commercial project reports used in the SAP Project System (SAP PS).


� List various reporting options for project-specific data� Name the functions of the structure information system and cost reports

Business ExampleYou want to use the Reporting and Analytics for monitoring your projects duringthe planning and execution phases. You can obtain an overview here of the variousreporting functions for projects.

Analytics and Reporting: OverviewThe project information system is a flexible, sophisticated tool with which youcan monitor and control your project data. You can analyze individual projects,subprojects, or several projects together. Overview reports and reports for providinggreater detail are available.


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PLM200 Lesson: Reporting

Figure 20: Information Systems

You can use the following information systems to evaluate important key figuresfor your projects:

� Structure information system� Cost/revenue/payment (Controlling) information system, with hierarchy reports,

cost element reports, and the SAP List Viewer for line items� Capacity analysis� Order report, lists of reservations, purchase requisitions, purchase orders

pertaining to the projects, ProMan� Stock/requirements overview� Progress analysis, progress tracking� SAP Business Information Warehouse (SAP BW)

The following reports and systems are available, in particular for cross-projectevaluations:

� Project summarization� SAP Executive Information System (SAP EIS)� Profit Center Accounting reports� Profitability Analysis reports


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Figure 21: Level of Detail

You can use SAP EIS to evaluate logistical and accounting key figures across projects.Reporting is performed using drilldown reports. You can define characteristics ofyour choice based on your project master data (project type, business area, or personresponsible for project, for example). In Profitability Analysis, reporting is performedat profitability segment level. Reporting is based on value fields and characteristics.The reporting tools used are called drilldown reports. The reports allow you to evaluateproject data and production data together. In Profit Center Accounting, reporting isbased on profit centers and the profit center hierarchy. You can execute reports herethat will enable you to monitor the success of your organizational structure.

Hierarchy reports are drilldown reports for evaluating the costs, revenues andpayments of one or more projects. Reporting here is based on value categories.Hierarchy reports allow you to drilldown on the basis of various characteristics, andto call up line items and documents. Cost element reports enable you to evaluateproject costs and revenues. The data is presented in a cost-element-based display.Interactive displays in Microsoft Excel are also possible. Line item reports enable youto evaluate line items and documents. These reports are particularly useful becausethey allow you to select columns, calculate subtotals, and to call up a full range ofaccounting documents.

The structure information system enables you to evaluate objects as well as logisticaland accounting key figures. You can also edit (change, create) objects from theinformation system.


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With SAP BW, you can evaluate business data across systems and applications. SAPBW allows you to display data interactively with high-performance, easy-to-useevaluations.

Structure Information SystemThe structure information system evaluates the structural and logistical aspects ofprojects; but you can also display costs, revenues, and other data in the structure. Onthe initial screen, you specify which data you want the system to select from thelogical database in Project System. You can select the data you require using dynamicselection or object statuses.

In the structure overview, you can display and edit the entire hierarchical structure of aproject (including documents, PS texts, networks, other orders, investment programs,and SD documents). You can navigate from the structure overview to individualoverviews, detail screens, and detail screen lists. You can also access the individualoverviews directly. SAP-List-Viewer-based or extended individual overviews areavailable for the individual overviews.

Figure 22: Structure Overview and Individual Overviews


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Important functions supported by these reports allow you to select fields from projectstructures, display them as columns, and use them to sort or group objects. Youcan define filters or exceptions to select particular objects or highlight these in adifferent color. In addition to displaying objects in line with the hierarchy of theproject structures, you can use other views for your evaluations. For example, you canevaluate your objects in accordance with your cost center or profit center hierarchy.You can also display your project data graphically, send it via SAP Office, and exportit in different formats. You can store the settings you have made in the structureinformation system using profiles and display variants.

Figure 23: Structure Information System: Functions

The structure information system is not merely a tool for displaying information.You can also create and change project structures (for example, project definitions,WBS elements, networks, and activities) from the reports. If you have a multi-levelproduct structure with production and planned orders (assigned to WBS elements),the entire structure is displayed in the structure overview, and can be edited. You canalso call up other assigned orders to display or change objects. From the informationsystem, you can confirm activities, and initiate pools of confirmations or confirmationworkflows. You can also go to the mass change transaction if you do not want tochange an individual object, and create collective confirmations. Once you have madeyour changes, you can refresh the data (in other words, read it from the databaseagain) to evaluate the changes straight away. You can use the right-hand mouse button(context-sensitive) to choose functions that are valid for the current cursor position.


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Figure 24: Structure Information System: Graphical Evaluation and Data Export

You can call up the following graphics from the structure information system.

� Hierarchy graphic (WBS elements and activities)� Network graphic (activities)� Structure graphic (other objects - with the exception of WBS elements and

activities - are also displayed: SD documents, project orders, or investmentprograms, for example)

� GANTT chart (unlike the project planning board, this can be called up forseveral projects)

� Portfolio (X-Y representation of two columns)� SAP Business Graphics (for example, total curves, histograms)

You can export data from the structure information system in a range of formats. Thevarious formats available for this are shown in the �Structure Information System:Graphical Evaluation and Data Export� figure.


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Commercial Project ReportsThe costs/revenues/payments hierarchy reports enable you to evaluate your PS datainteractively. Reports of this type can evaluate your data according to specificcharacteristics. Each report contains a wide range of lists that you can accessinteractively. The hierarchy reports include user-friendly functions that enable youto work online in these lists. Using the drilldown functions, you can navigate fromthe basic list to the various levels in the report. You can also change the sequence ofcharacteristics as you go. You can select individual elements and analyze their costs ingreater detail using drilldown lists.

For example, you could start by displaying the planned costs for the entire projectand then how the planned costs are distributed among the various value categoriesfor WBS element WBS 2(see figure 25). You could then analyze the planned costsof WBS element WBS 2 for value category 620 according to cost distribution tothe various periods.

Figure 25: Hierarchy Reports

In hierarchy reports, you can sort columns and rows, compress or expand hierarchicaldisplays to the required level, use exceptions to highlight values in a different color, orcall up other reports. You can also carry out conversions to different currencies, usegraphical display options, send and print data, and use export functions in hierarchyreports.


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Cost element reports display costs by cost element. In a navigation panel in the costelement reports, for example, you can go to a structure and choose the object whosecosts you want to analyze or call up an appropriate list and choose the period you wantto evaluate. You can use sort and filter functions here, as well as different currenciesto display the data. You can also print, send, and export data from cost elementreports. In the report itself, you can output the data in Microsoft Excel or Lotus 123format if you want to use a spreadsheet to calculate average values, for example. Youcan call up other reports, such as line item reports, from cost element reports. Inexpert mode, you can refresh your data.

Figure 26: Cost Element Reports

All line items are evaluated using the SAP List Viewer. This tool standardizes andsimplifies the procedure for working with lists in the SAP System. In addition totypical list functions, such as flexible column selection and automatic adjustment ofthe column width, sorting and filtering data by column, as well as calculating totalsand subtotals, the SAP List Viewer also allows you to print, send, and export data.You can store the settings you have made to the SAP List Viewer as layouts eitherjust for yourself (user-specific) or make them generally available. In the line itemreport, you can also call up and analyze the original documents as well as the accountdocuments for the original documents. You can call up the reports for the line itemsdirectly or use report interfaces between the various cost reports.


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Figure 27: Line Item Reports

You can go from one hierarchy report to other hierarchy reports or cost element reportsby choosing the Goto menu (or the appropriate icon). These report interfaces enableyou to go from hierarchy reports and cost element reports to line item reports. You canthen branch from the line item reports to the original documents and, in the case ofactual line items, to the various accounting documents. This allows you, for example,to drill down the cost structure of the hierarchy report so that you can analyze theactual costs in your project. You can select fields in the report and go to a cost elementreport to carry out further analyses. You can call up the line item report you requirefrom the cost element report to display the accounting documents.


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Figure 28: Evaluation Using Cost Reports

SAP Business Information WarehouseWith SAP BW, you can evaluate data from transactional SAP applications, such asSAP PS, as well as from any other business applications and external data sources,such as databases, online services and the Internet. The descriptions of the data(metadata) are stored separately from the source in a common metadata repository,which means that data from a wide range of sources can be combined so that it canbe analyzed further. The Administrator Workbench is responsible for controlling,monitoring, and maintaining the data procurement processes.


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Figure 29: SAP Business Information Warehouse

SAP BW supports Online Analytical Processing (OLAP) for preparing large volumesof operative and historical data. OLAP technologies allow multidimensionalanalyses to be performed according to various business criteria. InfoCubes describea self-contained dataset (from a reporting perspective) that can be evaluated. (Incontrast to multidimensional data stores for InfoCubes, data in ODS objects is storedin transparent, flat database tables.)

You analyze data in SAP BW using Business Explorer tools (BEx tools). The BusinessExplorer includes the following BEx tools:

� BEx Analyzer for defining queries, retrieving data from the BW database, andfor analyzing and presenting data in Microsoft Excel or on the Web

� BEx Browser for organizing and managing workbooks and documents� BEx Map for visualizing data on geographical maps� BEx Web Application Designer for generating HTML pages, for example, that

contain BW-specific content such as tables, charts or maps.

The Business Explorer provides a wide range of different users with access to theinformation stored in SAP BW. The information can be accessed via the EnterprisePortal, for example using an iView that you can call up in addition to the applicationsfrom which the data was extracted, via the intranet (Web Application Design), and


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via mobile devices, such as WAP or i-Mode-capable cellular phones, personal digitalassistants, and so on). Additional interfaces are also available for connecting frontendtools from third-party vendors.

�Business Content� is the term used to describe predefined role and task-relatedinformation models. The Business Content for SAP PS contains predefined roles,InfoCubes, and queries for example. You can use Business Content without makingany modifications to it. You can, however, change it or even use it as a template forcreating your own content, thereby speeding up the implementation of SAP BW.


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Exercise 5: Project Information System

Exercise ObjectivesAfter completing this exercise, you will be able to:� Use the structure overview in the structure information system� Carry out evaluations using a cost element report� Use line item reports for evaluations� Optional: Analyze data in a hierarchy report according to various criteria

Business ExampleFamiliarize yourself with the various reports from the structure and controllinginformation systems in order to analyze the project data. Use project E-9990 to dothis. This project has reached the execution phase and, therefore, already containsplanned and actual data.

Task 1: Structure Information SystemUse the structure overview in the structure information system to evaluate projectE-9990.

1. Call up the structure overview in the structure information system in ProjectSystem. Select the data in project E-9990.

Use the field selection function to hide the Project Revenue Plan 000 andActual Revenues columns and select the Work and Work Center fields insteadas additional columns.

Adjust the settings so that the values are not aggregated.

In the structure overview, the project definition, WBS elements, network header,activities, milestones, and documents are displayed for project E-9990. Go fromthe report to the detail screen of the only general costs activity in the project.

Go back to the structure overview and then to the SAP menu without savingthe data you have selected.



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Task 2: Controlling Information SystemAnalyze the costs in project E-9990 using the controlling information system. Usea cost element report for the evaluation and a line item report to analyze the actualcosts in detail.

Optional: Use a hierarchy report to evaluate the project costs according to variouscharacteristics.

1. Call up the plan-based cost element report Actual/Commitment/Total/Plan in COArea Currency in the controlling information system in Project System. Selectproject E-9990. Because the project began in a previous fiscal year, you haveto adjust the selection criteria. On the selection screen, enter the fiscal years1995 to the current year. Then execute the report.

To which cost elements were actual costs posted in the project?

2. Go from the cost element report to a line item report for the actual costsin project E-9990. Adjust the layout of the report temporarily so that theappropriate partner object is displayed in a column. From which cost centerdoes the project use activities?

Exit the line item and cost element reports and go back to the SAP menu withoutsaving the data.

3. Optional: Evaluate the costs in project E-9990 using the plan-basedhierarchy report Plan/Actual/Commitment/Rem.Plan/Assigned in the controllinginformation system in Project System. Use the graphical report output as theoutput type when you execute the report. Drill down the data according to thecharacteristic Business Transaction.

Then analyze how the planned costs for the business transaction StandardCosting (Primary) are distributed over various periods (drill down). Finally,return to the SAP menu.


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Solution 5: Project Information SystemTask 1: Structure Information SystemUse the structure overview in the structure information system to evaluate projectE-9990.

1. Call up the structure overview in the structure information system in ProjectSystem. Select the data in project E-9990.

Use the field selection function to hide the Project Revenue Plan 000 andActual Revenues columns and select the Work and Work Center fields insteadas additional columns.

Adjust the settings so that the values are not aggregated.

In the structure overview, the project definition, WBS elements, network header,activities, milestones, and documents are displayed for project E-9990. Go fromthe report to the detail screen of the only general costs activity in the project.

Go back to the structure overview and then to the SAP menu without savingthe data you have selected.

a) To call up the structure overview, choose SAP Menu→ Accounting→Project System→ Information System→ Structures→ Structure Overview.Enter E-9990 in the Project field and choose Execute.

Hint: Using the multiple selection function, you can evaluateseveral projects at the same time. You can, however, also useappropriate selection criteria, a status profile or dynamic selectionsto restrict the data selected to specific objects. You can save yourselection criteria as a variant.

To display and hide columns, choose Choose Fields. Go to the SelectedFields area on the left of the dialog box, select the two lines ProjectRevenue Plan 000 and Actual Revenues and choose Do Not Choose.In the area on the right, now select the lines Work and Work Center andchoose Choose. Confirm your selection with Enter. The new fieldsare displayed in the overview in the appropriate columns.

b) The values for the planned work for the activities, and the planned oractual costs are aggregated in the project structure. To change the valuesto non-aggregated values, choose Settings→ Value Display→ NotAggregated. The values are now only displayed for the individual activities.



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c) In the structure overview, the various objects in the project are displayedtogether. In the Object Type column, you can see that activity 3000 isa general costs activity. To call up the detail screen for this activity,double-click activity number 3000 in the Project Object column. Thesystem calls up the transaction for displaying the detail data of the costsactivity. To go back to the structure overview, choose Back in the detailscreen, and then Back twice.

Hint: In the structure overview, you can display assigned ordersfrom other applications, such as production, maintenance, andinternal orders, as well as sales documents, such as customerinquiries and sales orders, in addition to the objects from ProjectSystem, documents and assigned material components. You cancall up the transaction for displaying and editing these objectsfrom the structure overview. By refreshing the data in the report,you can display the changes made to the objects directly in thestructure overview.

To exit the overview without saving your data, choose Back and No inthe dialog box. To return to the SAP menu, choose Back again.

Task 2: Controlling Information SystemAnalyze the costs in project E-9990 using the controlling information system. Usea cost element report for the evaluation and a line item report to analyze the actualcosts in detail.

Optional: Use a hierarchy report to evaluate the project costs according to variouscharacteristics.

1. Call up the plan-based cost element report Actual/Commitment/Total/Plan in COArea Currency in the controlling information system in Project System. Selectproject E-9990. Because the project began in a previous fiscal year, you haveto adjust the selection criteria. On the selection screen, enter the fiscal years1995 to the current year. Then execute the report.



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To which cost elements were actual costs posted in the project?

a) To evaluate project E-9990 in the cost element report, go to the SAPProject System menu and choose Project System → InformationSystem→ Financials→ Costs→ Plan-Based→ By Cost Element→Actual/Commitment/Total/Plan in CO Area Currency. On the initial screen,enter the following selection criteria:

Field Name ValuesProject E-9990

From Fiscal Year 1995

To Fiscal Year Current year


To start the report, choose Execute.

Hint: In the Variation area on the left, you can choose the objectwhose costs you want to evaluate on the right. In addition to theplanned costs and actual costs of the various objects, you can alsoevaluate commitment costs, if necessary, in the report on the basisof purchase requisitions or purchase orders.

Actual costs are displayed in the report for the following cost elements:

� 619000 DAA Production� 620000 DAA Machine Costs

2. Go from the cost element report to a line item report for the actual costsin project E-9990. Adjust the layout of the report temporarily so that theappropriate partner object is displayed in a column. From which cost centerdoes the project use activities?



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Exit the line item and cost element reports and go back to the SAP menu withoutsaving the data.

a) You are still in the transaction for evaluating project E-9990 in the costelement report Actual/Commitment/Total/Plan in CO Area Currency.

To call up the line item report for all the actual costs displayed, select thetotal value in the Actual column and choose Call up report.

To add an additional column, choose Change Layout... in the line itemreport. In the dialog box, go to the Hidden Columns on the DisplayedColumns tab page and select Partner Object. Copy the field to DisplayedColumns by choosing Show Selected Fields and confirm your selectionwith Enter.

In the Partner Object column, the cost center and activity types aredisplayed that were used for activity allocation. So far, only costs from thecost center 4290 have been allocated to project E-9990.

Hint: Using the Environment menu of the line item report,you can also call up the source document for a line item. Ifother accounting documents have been created (for example,cost accounting documents, profit center documents, financialaccounting documents, and so on), you can display these bychoosing Environment→ Accounting Documents.

To return to the cost element report, choose Back. Choose Yes in thedialog box to exit the line item list.

To return to the SAP menu, choose Back and then confirm the dialogbox for exiting the report with Yes.

3. Optional: Evaluate the costs in project E-9990 using the plan-basedhierarchy report Plan/Actual/Commitment/Rem.Plan/Assigned in the controllinginformation system in Project System. Use the graphical report output as theoutput type when you execute the report. Drill down the data according to thecharacteristic Business Transaction.



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Then analyze how the planned costs for the business transaction StandardCosting (Primary) are distributed over various periods (drill down). Finally,return to the SAP menu.

a) In the SAP Project System menu, choose Project System→ InformationSystem → Financials→ Costs→ Plan-Based → Hierarchical→Plan/Actual/Commitment/Rem.Plan/Assigned. On the initial screen, enterE-9990 in the Project field if this has not been defaulted by the system.Choose Graphical Report Output as the output type. Execute the reportwith Execute.

The costs are displayed in the report in accordance with the projectstructure. To drill down the data according to the characteristic BusinessTransaction, double-click the characteristic on the left in the navigationpanel. The cost display is then adjusted accordingly.

b) To analyze the periodic distribution of just the planned primary costs, useyour cursor to drag the line containing the business transaction StandardCosting (Primary) from right to left to the characteristic Period/Year inthe navigation panel. The drilldown list of the costs for this businesstransaction is then displayed.

Hint: In the navigation panel, Standard Costing (Primary) isdisplayed as the current value of the characteristic BusinessTransaction. Using Previous Value and Next Value in thenavigation panel, you can choose a different characteristic value.Only the costs for this characteristic value are then displayed inthe drilldown list.

To return to the SAP menu from the report, choose Back and confirmthe dialog box for exiting the report with Yes.


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Lesson Summary

You should now be able to:� List various reporting options for project-specific data� Name the functions of the structure information system and cost reports


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PLM200 Unit Summary

Unit SummaryYou should now be able to:� List various reporting options for project-specific data� Name the functions of the structure information system and cost reports


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Unit Summary PLM200


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Unit 4Planning

Unit OverviewDuring the planning phase of a project, dates must be set, resources made available,and material and funds consumption planned. This unit provides you with an overviewof the various planning options available using work breakdown structures, networks,and activities.


� Plan basic dates for WBS elements by means of the project planning board� Name the basic characteristics of scheduling� Explain the concept behind planning internal and external activities by means

of network activities� Distribute work among the workforce� Explain the material planning functions in the SAP Project System (SAP PS)� Name the benefits of transferring BOMs� Name different methods for planning project costs and revenues� Plan costs using Easy Cost Planning for a work breakdown structure� Explain the concept behind network costing� Name the sales pricing functions� Carry out project revenue planning using sales orders

Unit ContentsLesson: Date Planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

Exercise 6: Date Planning.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95Lesson: Resource Planning .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .103

Exercise 7: Resource Planning.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .109Lesson: Material Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

Exercise 8: Material Planning... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .121


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Unit 4: Planning PLM200

Lesson: Cost and Revenue Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126Exercise 9: Cost and Revenue Planning ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135

Figure 30: Aspects of Planning


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PLM200 Lesson: Date Planning

Lesson: Date Planning

Lesson OverviewThis lesson provides an overview of the date planning options with WBS elementsand networks. The project planning board, which is particularly useful for planningand evaluating dates, will be used.


� Plan basic dates for WBS elements by means of the project planning board� Name the basic characteristics of scheduling

Business ExampleYou want to plan dates manually for the individual work packages in your projectE-99##. To plan dates for project T-200##, carry out scheduling on the basis of thenetwork or activity information.

Project Planning BoardThe project planning board is a tool in SAP Project System (SAP PS) that enablesyou to process the entire project structure (WBS elements, activities, and the differentobjects assigned to them; see figure �Project Planning Board: Objects�) in anintegrated environment. The project planning board is based on an interactive SAPGantt chart. The Gantt chart comprises a table and diagram area, and shows not onlythe hierarchical structure of your project but also the corresponding situation withregard to dates. By choosing different points on the project planning board, you cancall up detail screens for objects or change the field selection and time settings. Whenyou click the right-hand mouse button, all the functions available at the cursor positionare displayed. When using the project planning board, you can display or hide specificobjects (activities, relationships, or milestones), as well as use different filter, sort, orgrouping functions. You can configure the project planning board in such a way that itonly displays what you need.


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Figure 31: Project Planning Board: Objects

You can use the project planning board to create and edit the project definition, WBSelements, activities, relationships, milestones, material components, documents, andPS texts. The project planning board is also particularly useful for planning dates andresources (work, external processing), as well as determining and planning costsusing activities.


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Figure 32: Project Planning Board: Integration

In addition to the scheduling overview, you can display the following projectoverviews:

� Capacity overview: The system displays the work centers along with theircapacity load utilization for the activities selected. Green bars indicate thatcapacity is still available, while red bars indicate that the available capacityhas been exceeded.

� Materials overview: The system displays the components (and the correspondingrequirements dates) assigned to the activities selected.

� Cost/revenue overview: The system displays the development of thecosts/revenues for the WBS elements or activities selected.

� Maintenance orders: In a further sub-screen, the system displays themaintenance orders that have been assigned to an activity.

From the project planning board (and the Project Builder), you can call up thehierarchy graphic for WBS elements or the network graphic for activities where youcan then work interactively.


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WBS Date PlanningIn projects without networks, dates can be planned manually for the WBS elements(basic dates). You can use the project planning board to plan basic dates for the WBSelements, for example, simply by dragging your mouse. Using structure planning,you can plan these dates in a table in the Project Builder in the detailed data forthe WBS elements. To reduce the time and effort involved in planning, a range offunctions are available to support WBS date planning. Basic dates can be extrapolatedfrom lower to higher-level WBS elements, for example, or passed on from higher tolower-level WBS elements. You can check the consistency of date planning withinthe WBS structure.

In the execution phase, you can also enter actual dates in the project planning board bydragging your mouse, and then compare them directly with the planned basic dates.

Figure 33: Basic Dates for WBS Elements

SchedulingIn projects with networks, you can carry out scheduling to automatically derive theactivity dates and WBS element dates. The scheduling parameters determine howscheduling is carried out. Networks are always scheduled forwards and backwards.The scheduling type in the scheduling parameters specifies the direction in whichyou begin scheduling. The system determines the earliest dates of the activities bymeans of forward scheduling, and the latest dates by means of backward scheduling.The difference between the earliest and the latest dates of an activity are referred toas floats. Floats can be zero or negative, which means that the activity in question is�critical�.


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In the project planning board, you can select WBS elements and schedule the assignedactivities. The dates of the assigned activities are summarized to determine thescheduled dates of the WBS elements (thin time bars in the project planning board)and can be copied as planned basic dates. The dates scheduled in the work breakdownstructure can then be extrapolated within the project structure. In the implementationguide, you can configure the appropriate scheduling parameters or use predefinedscheduling scenarios. You can use the project planning board to change these settingsfor a particular project.

Figure 34: Scheduling


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Exercise 6: Date Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Plan basic dates for WBS elements by means of the project planning board� Carry out scheduling in the project planning board

Business ExamplePlan basic dates for the individual WBS elements manually for investment projectE-99##. In customer project T-200##, planned dates are determined automatically byscheduling the activities and displayed in aggregated form in the WBS elements.

Hint: In the following tasks, ## indicates your group number (## = 01, 02,and so on).

Task 1: Planning Basic Dates for WBS Elements � ProjectE-99##Use the project planning board to plan basic dates for the WBS elements manuallyin project E-99##.

1. Change project E-99## in the project planning board. In the diagram area of theproject planning board, plan feasible basic dates for all the WBS elements (apartfrom E-99## Elevator Gr##, E-99##-1 Engineering, and E-99##-2 Procurement)by dragging the time bars using your mouse. The entire project should lastaround 6 months.

Determine the dates of the higher-level WBS elements using the ExtrapolateDates function. Save your changes.

2. Optional: The procurement phase of project E-99## has to be postponed by10 days. In the project planning board, shift the planned dates for the entiresubtree of WBS element E-99##-2 Procurement (and the lower-level WBSelements) by 10 days.

The assembly and acceptance phases also have to be postponed by 5 days as aresult of the procurement phase being postponed. Use the cursor to shift thetime bars for WBS elements E-99##-3 Assembly and E-99##-4 Acceptanceaccordingly.



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Determine the new end date for the level 1 WBS element E-99## Elevator Gr##by extrapolating the basic dates. To change the earliest and latest dates, selectall of the WBS elements and choose schedule. Save the modified date planningdata for your project.

Task 2: Scheduling � Project T-200##Use the scheduling function to plan dates for the activities and WBS elements ofproject T-200## in the project planning board.

1. Now plan dates for project T-200##. To do so, open the project in the projectplanning board and display all the dependent objects. Extend the duration ofactivity 1000 (Engineering of Drawing/Calculation/Design) to 25 days. Alsotake a look at the fields relevant to scheduling in the detailed screen for theactivity.

Determine the dates of all the objects using the Schedule function. Thescheduling parameters are set in such a way that the basic dates for the WBSelements to which the activities are assigned are also determined automatically.

To determine the basic dates for the level 1 WBS element as well, extrapolatethe dates in the project structure afterwards. Save your date planning data andreturn to the SAP menu.


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Solution 6: Date PlanningTask 1: Planning Basic Dates for WBS Elements � ProjectE-99##Use the project planning board to plan basic dates for the WBS elements manuallyin project E-99##.

1. Change project E-99## in the project planning board. In the diagram area of theproject planning board, plan feasible basic dates for all the WBS elements (apartfrom E-99## Elevator Gr##, E-99##-1 Engineering, and E-99##-2 Procurement)by dragging the time bars using your mouse. The entire project should lastaround 6 months.

Determine the dates of the higher-level WBS elements using the ExtrapolateDates function. Save your changes.

a) Open project E-99## in the project planning board. To do so, choose SAPMenu→ Accounting→ Project System→ Project→ Project PlanningBoard→ Change Project and then choose the project E-99## ElevatorGr##.

So far, you have only defined a basic start date for the project definition.The date is shown in the diagram.

Under the diagram area, the date is displayed in accordance with theposition of the cursor. You can now use this information to plan dates forWBS elements graphically and yet, at the same time, for specific days. Todo so, position your cursor in the diagram area on the row of the appropriateWBS element so that the required date is displayed below. Press and holddown the left-hand mouse button to drag a time bar across to the plannedfinish date. Use this method to plan the following dates, for example(MM+1 means next month, MM+2 the month after next, and so on):

WBS Element From (basic startdate)

To (basic finish date)

E-99##E-99##-1E-99##-1-1 01.MM+1 MM+1/15E-99##-1-2 01.MM+1 MM+1/25E-99##-2



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E-99##-2-1 MM+1/10 MM+2/10E-99##-2-2 MM+1/26 MM+3/26E-99##-2-3 MM+3/01 MM+4/01E-99##-3 MM+4/02 MM+5/15E-99##-4 MM+5/20 MM+6/01

b) To determine the basic dates for the higher-level WBS elements, chooseEdit→ Reconcile Dates→ Extrapolate Dates.

Hint: If you make the appropriate settings, the dates can beextrapolated automatically when you save your data.

The extrapolation updates the basic dates for higher level WBS elementsand the schedule dates (earliest and latest dates) for each WBS element.

To save your date planning, choose Save. If you have made anychanges to the layout of the project planning board, the system promptsyou to save these changes. In this case, confirm that you want to save theuser-dependent data by choosing Yes.

2. Optional: The procurement phase of project E-99## has to be postponed by10 days. In the project planning board, shift the planned dates for the entiresubtree of WBS element E-99##-2 Procurement (and the lower-level WBSelements) by 10 days.

The assembly and acceptance phases also have to be postponed by 5 days as aresult of the procurement phase being postponed. Use the cursor to shift thetime bars for WBS elements E-99##-3 Assembly and E-99##-4 Acceptanceaccordingly.



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Determine the new end date for the level 1 WBS element E-99## Elevator Gr##by extrapolating the basic dates. To change the earliest and latest dates, selectall of the WBS elements and choose schedule. Save the modified date planningdata for your project.

a) Open your project in the project planning board by choosing E-99##Elevator Gr## in the worklist.

Select WBS element E-99##-2 Procurement on the left in the table area. Toshift the dates of the entire subtree, choose Edit→ Shift Dates→ Subtree.

In the dialog box, enter the new start date (postponed by 10 days) andconfirm your entry with Enter.

b) To shift the planned dates for the assembly phase as well, position the cursoron the time bar of WBS element E-99##-3 Assembly in the diagram areaand shift the time bar along 5 days by holding down the left-hand mousebutton. Repeat this procedure for WBS element E-99##-4 Acceptance.

Hint: When the cursor appears as a four-way arrow, this means thatyou can move the time bar. When the cursor appears as a two-wayarrow, this means that you can extend or shorten the time bar.

c) To determine the new finish date for the level 1 WBS element E-99##Elevator Gr##, choose Deselect All and then Edit→ Reconcile Dates→ Extrapolate Dates.

Select all WBS elements and then schedule your project to change theearliest and latest dates

Save your changes by choosing Save.

Task 2: Scheduling � Project T-200##Use the scheduling function to plan dates for the activities and WBS elements ofproject T-200## in the project planning board.

1. Now plan dates for project T-200##. To do so, open the project in the projectplanning board and display all the dependent objects. Extend the duration ofactivity 1000 (Engineering of Drawing/Calculation/Design) to 25 days. Alsotake a look at the fields relevant to scheduling in the detailed screen for theactivity.



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Determine the dates of all the objects using the Schedule function. Thescheduling parameters are set in such a way that the basic dates for the WBSelements to which the activities are assigned are also determined automatically.

To determine the basic dates for the level 1 WBS element as well, extrapolatethe dates in the project structure afterwards. Save your date planning data andreturn to the SAP menu.

a) Open project T-200## in the project planning board by choosingT-200## Turbine Gr## in the worklist.

To display all the dependent objects (including the project milestones,for example) select all the objects by choosing Select All and thenShow All Dependent Objects.

Choose activity 1000 (Engineering of Drawing/Calculation/Design). Inthe detail screen, note the fields Normal Duration, Factory Cal.ID, WorkCenter, and Control Key on the Internal tab page. All these fields arerelevant for scheduling. Increase the value in the Normal Duration field to25 days. Call up the Dates tab page. In the lower part of this detail screen,you can see the earliest and latest dates defined for the activity. In theupper part, you can define constraints to fix dates for activities. To returnto the project planning board, choose Back.

b) The change you have made will also affect the dates defined for subsequentactivities. To determine the new dates of these activities, choose SelectAll and then Schedule.

Hint: Depending on the scheduling parameters used and the startdate originally planned for your project, the system displays awindow at the bottom of the screen containing warning messagesabout scheduling. The warning message Start Date is in the Past:Today Scheduling, for example, means that the system has usedtoday�s date for scheduling instead of the original start date. Closethe window by choosing Open/Close Bottom Window.



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c) When you do this, the dates for all activities are redetermined. The systemalso extrapolates activity dates for the assigned WBS elements. These datescan also be extrapolated further in the project structure to determine theduration of the entire project. To do so, choose Deselect All and thenEdit→ Reconcile Dates→ Extrapolate Dates.

Hint: You can configure the system in such a way that the dates arescheduled and extrapolated automatically when you save your data.

To save your changes, choose Save. To return to the SAP menu, chooseBack.


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Lesson Summary

You should now be able to:� Plan basic dates for WBS elements by means of the project planning board� Name the basic characteristics of scheduling


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PLM200 Lesson: Resource Planning

Lesson: Resource Planning

Lesson OverviewThis lesson shows you how to use activities to plan internal activities and services.Planning internal activities involves evaluating capacity requirements and distributingthe work to be carried out among the employees. In the case of externally-procuredservices, purchase requisitions for the purchasing department are generated.


� Explain the concept behind planning internal and external activities by meansof network activities

� Distribute work among the workforce

Business ExampleYou will use the network activities in project T-200## to plan activities that are to becarried out by employees at your own company and check the availability of theappropriate capacities. You then distribute the planned work among the employees.You also plan services that are to be procured by Purchasing using appropriateactivities in your network and trigger their procurement via Purchasing.

Resource Planning: OverviewYou use activities in a network to plan the resources required for a project. ProjectSystem distinguishes between the following resources:

Internally-processed activities define the work to be carried out by machines orpersons. You can evaluate the capacities of the various work centers involved,reschedule these capacities as necessary, and distribute work among employees.You can use externally-processed activities to define which services are requiredby other companies. External processing is carried out by the Purchasingdepartment.Service activities are also used to procure services externally. Unlikeexternally-processed activities, this activity type enables you to define servicespecifications and value limits for unplanned services rendered by the serviceprovider. Service processing (including entry and acceptance of servicesperformed) is also carried out by the Purchasing department.


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Figure 35: Resource Planning

Internal ProcessingInternally-processed activities are used as a basis for planning work carried out withinthe company. You must enter work data for an activity so that the system can plancapacities for a project and calculate costs for activities. You need to specify theamount of work involved and the work center that is to perform the work. Work is theoutput to be provided by machines or personnel in order to complete an activity. Awork center is the place where an activity is carried out or work output is produced.Work centers contain data for costing activities. Work centers also contain thescheduling and capacity data required for scheduling and capacity planning. You candetermine how much of the work center capacity is used for the activities (in theproject planning board too, for example). If necessary, you can use the project planningboard or graphical/tabular capacity planning table to level capacities. You can alsodistribute the work among employees. When you confirm activities during the projectexecution phase, you consume capacity requirements and enter actual dates and costs.


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Figure 36: Internal Processing

When you distribute work among employees, you assign persons to activities. Todistribute work, you can set up project teams and select HR organizational units,positions, or persons. You can also schedule the personnel who are assigned to thework center for the activity. A project and work center view are available to helpyou distribute work among the employees (see Fig. �Workforce Planning�). In bothviews, you can quickly and easily assign persons to activities and use various data(availability of the person from Human Resources, the total work planned for thatperson, or the activity data, for example).


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Figure 37: Workforce Planning

External ProcessingService procurement via Purchasing is mapped in networks by means of the activitytypes external processing and service. If you commission an engineering officeto design a machine, for example, you can create an externally-processed activity(or externally-processed element). When you create an activity such as this, apurchase requisition is also created that is processed further in Purchasing (see Fig.�External Processing�). You can use data from Purchasing for external processing(a purchasing info record, for example, that contains prices and delivery times forexternal processing).

A service activity triggers a similar purchasing process, but can also contain ahierarchy of planned services to be purchased, and value limits for unplannedservices. The �goods receipt� for services involves two steps: entering the serviceand accepting the service.

Control keys are used to define externally-processed activities and service activities(as well as other activity types).


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Figure 38: External Processing


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Exercise 7: Resource Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Plan capacity requirements for internally-processed activities� Distribute work among the workforce� Generate purchase requisitions for externally-processed activities

Business ExampleIn customer project T-200##, you will use activities to plan resources. In the case ofinternally-processed activities, capacity requirements are generated for the assignedwork centers. These requirements can be evaluated and, if necessary, levelled. Youdistribute planned work to individual employees. In the case of externally-processedactivities, purchase requisitions are generated and passed on to the Purchasingdepartment.


Task 1: Internal Processing � Project T-200##For the internally-processed activities in project T-200##, check the capacity loadutilization for the assigned work centers. Distribute the planned work for an activityto different employees. This distribution can be used when you come to record theactivities carried out by the employees as a default value for the Cross-ApplicationTime Sheet.

1. Change activity 1200 (Engineering of Case) in project T-200## in the projectplanning board. The activity is now to be processed by employees assigned towork center 2700. Activate the capacity requirements for your project for theassigned work centers and carry out scheduling again.

Use the capacity overview on the project planning board to check the situationwith regard to capacity for the assigned work centers. Display the capacityload utilization in this overview in a histogram and then call up an explanatorylegend. Save the project.

2. Use the project view for the distribution of work to employees and profile 1302to assign persons for activity 1200 (Engineering of Case) in project T-200##.To do so, choose person 1920+## from the list of proposed persons (for exercise



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group 01: 1921; for ## = 02 personnel number 1922, and so on). Display theavailability of the person you assigned too. Schedule a total of 60 hours for theactivity in the planned period (you may have to scroll the table to the right). Savethe work distribution data and return to the SAP menu.

Task 2: External Processing � Project T-200##Check the externally-processed activity data in project T-200##. Generate a purchaserequisition from this activity.

Optional: Check the purchase requisition data using the appropriate report.

1. To procure an external service, you created activity 1400 (Engineering ofRotating Blades) in project T-200## as an externally-processed activity.External processing data was copied from purchasing info record 5500000093.In the project planning board, check which vendor has been proposed for theprocurement. Change the activity in such a way that the associated purchaserequisition is generated when you save the project. Save your project and returnto the SAP menu.

2. Optional: Use Purchase Requisitions for Project in the information system ofthe project system to display a list of purchase requisitions for project T-200##.Then return to the SAP menu.


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Solution 7: Resource PlanningTask 1: Internal Processing � Project T-200##For the internally-processed activities in project T-200##, check the capacity loadutilization for the assigned work centers. Distribute the planned work for an activityto different employees. This distribution can be used when you come to record theactivities carried out by the employees as a default value for the Cross-ApplicationTime Sheet.

1. Change activity 1200 (Engineering of Case) in project T-200## in the projectplanning board. The activity is now to be processed by employees assigned towork center 2700. Activate the capacity requirements for your project for theassigned work centers and carry out scheduling again.



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Use the capacity overview on the project planning board to check the situationwith regard to capacity for the assigned work centers. Display the capacityload utilization in this overview in a histogram and then call up an explanatorylegend. Save the project.

a) Open project T-200## in the project planning board. To do so, chooseSAP Menu→ Logistics→ Project System→ Project→ Project PlanningBoard→ Change Project and then choose T-200## Turbine Gr## in theworklist (under Last Projects Processed).

To call up the detail screen for activity 1200 (Engineering of Case),double-click the activity. Enter the new value 2700 in the Work Centerfield and then choose Back.

To activate the capacity requirements for your project at the assigned workcenters, choose Select All and then Edit→ Functions→ ActivateCapacities. Then reschedule your project by choosing Schedule.

b) Call up the capacity overview in the project planning board to analyze thesituation with regard to capacities at the work centers. To do so, chooseCapacity Overview. An overview window is displayed in the lower

part of the screen.

Hint: The capacity overview shows the situation with regard tothe capacities available in the work centers assigned to the project.Green bars show that the work center�s capacity is not used up,whereas red bars show that the work center�s capacity has beenexceeded. You can also display a histogram showing the capacityrequirements and the available capacity of individual work centers.

To display the capacity load utilization as a histogram, select a workcenter (if possible, one with a red bar) on the left of the capacity overviewand choose Load as Histogram from the context menu (right-click). Todisplay a legend for the capacity overview, choose Display Legend fromthe context menu.

Close the legend and save your changes by choosing Save. Exit theproject planning board by choosing Back.

2. Use the project view for the distribution of work to employees and profile 1302to assign persons for activity 1200 (Engineering of Case) in project T-200##.To do so, choose person 1920+## from the list of proposed persons (for exercisegroup 01: 1921; for ## = 02 personnel number 1922, and so on). Display the



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availability of the person you assigned too. Schedule a total of 60 hours for theactivity in the planned period (you may have to scroll the table to the right). Savethe work distribution data and return to the SAP menu.

a) In the SAP Project System menu, choose Project System→ Resources→ Workforce Planning→ Project View. Enter the following data on theselection screen and then choose Execute.

Field Name ValuesProject T-200##

Profile 1302

The Workforce Planning: Project View screen is now displayed. To createthe assignment, select activity 1200 Engineering of Case on the left in thetable and choose Create Assignment (bottom left).

The system displays a list of persons who are available in work center2700, which is assigned to activity 1200. In the list, select the person withpersonnel number 1920+## (for exercise group 01: 1921; for ## = 02,personnel number 1922, and so on) and then choose Enter.

The assigned person is displayed under the activity. To display theavailability of that person, select the person on the left in the table andchoose Availability Pers. Resource

To distribute the planned work, scroll the table to the right until you canenter hours for the periods (period in white). For some of the periods, enterhours and confirm your entries by choosing Enter. Schedule a total of60 hours for the person so that the remaining work to be distributed for theactivity (To Be Distributed column) is reduced to 170 hours.

Hint: To distribute all of the work, one person is not enough inour example. We would normally have to schedule more persons(either persons belonging to the work center in question, or personsnot belonging to the work center in question).

To save your work distribution data, choose Save. To return to theSAP menu, choose Back.



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Task 2: External Processing � Project T-200##Check the externally-processed activity data in project T-200##. Generate a purchaserequisition from this activity.

Optional: Check the purchase requisition data using the appropriate report.

1. To procure an external service, you created activity 1400 (Engineering ofRotating Blades) in project T-200## as an externally-processed activity.External processing data was copied from purchasing info record 5500000093.In the project planning board, check which vendor has been proposed for theprocurement. Change the activity in such a way that the associated purchaserequisition is generated when you save the project. Save your project and returnto the SAP menu.

a) Open project T-200## in the project planning board. To do so, chooseProject System→ Project→ Project Planning Board→ Change Projectand choose T-200## Turbine Gr## in the worklist.

To call up the detail screen for activity 1400 (Engineering of RotatingBlades), double-click the activity.

At present, external processing is to be carried out by vendor 1000 (dataread from the purchasing info record). With the current settings, thepurchase requisition for this activity would be generated when the activityis released. To ensure that the purchase requisition is generated as soon asyou save the project, set Res./Purc.Req. to Immediately.

Return to the overview of the project planning board by choosing Backand save your changes by choosing Save. Exit the project planningboard by choosing Back.

2. Optional: Use Purchase Requisitions for Project in the information system ofthe project system to display a list of purchase requisitions for project T-200##.Then return to the SAP menu.

a) To start the report, choose Project System→ Information System→Material→ Purchase Requisitions→ For Project. In the selection screen,enter project T-200## in the Project field and choose Execute.

The list contains data for the purchase requisition you created earlier.Further purchase requisitions have not yet been created for your project.

Exit the report by choosing Back (twice).


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Lesson Summary

You should now be able to:� Explain the concept behind planning internal and external activities by means

of network activities� Distribute work among the workforce


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Lesson: Material Planning

Lesson OverviewThis lesson shows you how to plan materials in projects by means of networks. Toplan material requirements, you have to assign material components to activities. Thislesson shows you how to use the Bill of Material (BOM) transfer function so thatBOM components can be assigned automatically to activities.


� Explain the material planning functions in the SAP Project System (SAP PS)� Name the benefits of transferring BOMs

Business ExampleYou will plan the on-time procurement and consumption of materials formanufacturing the turbine system. To reduce the time and effort involved in materialplanning, particularly if subsequent changes are made to the product structure, use theBOM transfer function.

Materials in ProjectsMaterials establish the link between SAP Project System and Sales and Distribution(SD), Materials Management (MM), and Production Planning and Control (PP). Asuitable material in a sales document item, for example, can be used to generateproject structures automatically (assembly processing). Material requirements inprojects form the basis for procurement, whether the material is produced in-house(production) or procured externally (purchasing).


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PLM200 Lesson: Material Planning

Figure 39: Materials in Projects

By assigning materials to activities, you can plan the necessary material requirementsfor a project. A distinction is made between stock items and non-stock items.

The item category stock item is used for materials that are kept in stock (warehousestock, project stock, or sales order stock). Reservations are created for stock items.Independent requirements (requirements for finished products, salable assemblies,trading goods, and spare parts), trigger requirements planning. To cover therequirements, you have to determine order quantities and dates, as well as schedulethe corresponding procurement elements. The procurement element for requirementsplanning is a planned order and, for external procurement, a purchase requisition. Inaddition, the dependent requirements for materials produced in-house (in other words,the quantity of components required to manufacture a finished product or assembly)are determined by exploding the bill of material. Planned orders are created at eachBOM level to cover requirements when a material shortage occurs. Once quantitiesand dates have been planned in requirements planning, these planned procurementelements are converted to exact procurement elements: for production, this is theproduction order and, for external procurement, the purchase order.

The item category non-stock item is used for components that are not procured viawarehouse stock, project stock, or sales order stock, but are instead procured directlyby means of the network activity. Purchase requisitions for Purchasing are created


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for these components directly. When the goods are received, they are posted to theactivity rather than placed into stock. Non-stock items, among other things, cannot bemanaged as project stock or sales order stock.

Figure 40: Integration with MM and PP

Transferring BOMsIn projects with low material requirements, you can assign individual materialcomponents to the network activities. You can also assign a material with a BOM toan activity and then explode it step by step.

The BOM transfer function makes it easier for you to assign material components inone or more BOMs to network activities. When you assign material components usingthe BOM transfer function, the system uses the Reference Point field in the BOMitems and activities to establish a logical connection between the individual BOMitems and the network activities. In contrast to when you assign individual componentsmanually, you can update subsequent changes to the BOM automatically in thenetwork activity. The BOM transfer function is particularly useful for engineeringprojects involving BOMs that are created during the course of the project or changedfrequently. When the BOM is transferred, assignments are made on a project-specificbasis and may also be made for different project networks simultaneously. You canassign individual components, individual BOM assemblies, or a multi-level BOM. Youcan assign components manually without reference points when transferring BOMs.


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Figure 41: Transferring BOMs


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Exercise 8: Material Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Assign material components to activities by transferring BOMs� Analyze material requirements dates in the project planning board

Business ExampleYou want to plan material requirements in customer project T-200##. The engineeringand design department uses CAD systems to map the product structure in the formof bills of material (BOMs). You activate procurement of the material by assigningmaterial components to project network activities. The materials are assignedautomatically by means of the BOM transfer function.


Task: BOM Transfer � Project T-200##Use the BOM transfer tool to assign BOM items to activities for project T-200## (viathe common reference points). Use the component overview in the project planningboard to check that the BOM items have been properly assigned and the plannedrequirements dates.

Optional: Call up the material components for your project in the Project Builder.

1. Call up the BOM Transfer tool in the Project System menu. Select projectT-200## and the BOM for material T-20000 in plant 1300 with usage 3(Universal). Use profile 1300 for the selection. Use these selection parametersto transfer the bill of material. Save the assignments and return to the SAP menu.

2. Open project T-200## in the project planning board and check that the materialcomponents have been assigned properly in the Component Overview. Choosethe General Data and Procurement Parameters tab pages in the detail screen forcomponent T-20210. Then exit the project planning board.

3. Optional: Open project T-200## in the Project Builder. Call up the overview ofall the assigned components and the detail screen for component T-20600. Towhich activity is this component assigned? Then exit the Project Builder.


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Solution 8: Material PlanningTask: BOM Transfer � Project T-200##Use the BOM transfer tool to assign BOM items to activities for project T-200## (viathe common reference points). Use the component overview in the project planningboard to check that the BOM items have been properly assigned and the plannedrequirements dates.

Optional: Call up the material components for your project in the Project Builder.

1. Call up the BOM Transfer tool in the Project System menu. Select projectT-200## and the BOM for material T-20000 in plant 1300 with usage 3(Universal). Use profile 1300 for the selection. Use these selection parametersto transfer the bill of material. Save the assignments and return to the SAP menu.

a) In the SAP menu, choose: Logistics→ Project System→ Material→Planning→ Bill of Material Transfer.

In the initial screen, enter the following selection criteria:

Field Name ValuesProject Definition T-200##

Profile 1300

Material T-20000

Plant 1300

BOM Usage 3

To start the transfer, choose Execute.

The results overview shows the components of the (multi-level) BOM thatwere assigned to the activities in your project because they had the samereference points. The components are assigned when you save your data.Choose Save, and exit the BOM transfer tool by choosing Back.

Hint: Other ways are also available for assigning materialcomponents to activities:

� By copying a template (that is, components have already beenassigned to the other project).



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� By assigning components manually using, for example, theProject Builder or project planning board.

2. Open project T-200## in the project planning board and check that the materialcomponents have been assigned properly in the Component Overview. Choosethe General Data and Procurement Parameters tab pages in the detail screen forcomponent T-20210. Then exit the project planning board.


To check that the material components have been assigned properly, chooseSelect All and then Component Overview in the project planning

board. The overview screen displays the assigned components along withtheir requirements dates.

Hint: You can display additional information about thecomponents, such as the detail screen or a goods receipt/issue list(GR/GI List), via the context menu (right click your mouse).

To call up the detail screen for component T-20210, choose T-20210 inthe component overview.

In the detail screen, call up the General Data tab page. The system not onlydisplays the requirements date for the component but also the reservationnumber. Call up the Procurement Parameters tab page. In addition to datafrom the component material master, this tab page displays important dataabout the quantity and value flow (account assignment categories, specialstock and consumption posting indicator, for example).

Exit the detail screen for the component and the project planning board bychoosing Back and Back (twice).



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3. Optional: Open project T-200## in the Project Builder. Call up the overview ofall the assigned components and the detail screen for component T-20600. Towhich activity is this component assigned? Then exit the Project Builder.

a) Call up the Project Builder from the Project System menu: Project System→ Project→ Project Builder. To open project T-200## double-clickproject T-200## Turbine Gr## in the worklist.

If necessary, expand the structure so that the assigned material componentsare also displayed in the Project Builder structure. To display a list of allthe material components that have been assigned to your network, choosethe network header in the structure tree and then choose ComponentOverview. The system displays a list of all the assigned components.

To display details for component T-20600, select the row for materialT-20600 in the overview and choose General. The detail screen isdisplayed and the components are highlighted in the structure. MaterialT-20600 is assigned to activity 4000.

Exit the project and the Project Builder by choosing Back and Exit.


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Lesson Summary

You should now be able to:� Explain the material planning functions in the SAP Project System (SAP PS)� Name the benefits of transferring BOMs


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Lesson: Cost and Revenue Planning

Lesson OverviewThis lesson gives you an overview of the different ways for planning costs andrevenues for projects. In particular, you will learn how to use the Easy Cost Planningtool to plan costs for WBS elements and network costing. This lesson also looks at theSales Pricing tool, which you can use to determine sales prices from the planned costsfor your project, plan revenues, or create customer quotations. You will also be shownhow to plan revenues for projects using billing plans in sales orders.


� Name different methods for planning project costs and revenues� Plan costs using Easy Cost Planning for a work breakdown structure� Explain the concept behind network costing� Name the sales pricing functions� Carry out project revenue planning using sales orders

Business ExampleYou want to manually plan the material costs, activity allocations, and so on, for yourelevator construction project (investment project E-99##).

The costs for project T-200## are determined automatically by means of networkcosting. Use a general costs activity to plan further project costs. Use sales pricingto plan the revenues for the project on the basis of these planned costs and create acustomer quotation. The sold-to party accepts your quotation for constructing theturbine system. Sales and Distribution will create a sales order that will be used toplan revenues and then carry out billing.

Cost PlanningYou can plan costs for a project in the SAP Project System (SAP PS) using twodifferent methods:

� Manual cost planning in the work breakdown structure� Cost planning using activities (network costing)


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PLM200 Lesson: Cost and Revenue Planning

Manual planning in the WBS involves:

� Overall planning: The most basic form of cost planning whereby the costs foreach WBS element are entered. You can break down your figures by fiscalyear if you wish.

� Detailed planning of primary costs and activity inputs: This type of planning isbased on cost elements and periods.

� Unit costing: For each WBS element, you use a scheme for entering quantities(materials, internal activities, external activities, variable items, and so on). Thistype of planning is based on cost elements.

� Easy Cost Planning: Easy Cost Planning is a user-friendly method for carryingout cost element-based cost planning by means of a quantity structure. Youcan then use Execution Services to enter commitment and actual data relatingto the planned costs.

In addition to manual planning in the WBS, you can assign different types of order(internal orders or maintenance orders, for example) to WBS elements that are flaggedas account assignment elements. This assignment can then be used to display theplanned costs of the orders for the project. You can also assign activities to WBSelements and plan costs using these activities. The benefit of this planning methodis that it can be copied to a new project and, if parts of the project are moved, costplanning is moved automatically along with the activities. In addition, planning bymeans of network activities is cost element and period based.


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Figure 42: Cost Planning in Projects

Easy Cost Planning is a user-friendly tool that enables you to plan costs for WBSelements. You can access Easy Cost Planning for projects from the Project Builder.You choose a WBS element from the structure and then create costing items forthis WBS element. Cost planning by means of Easy Cost Planning is cost elementbased. The cost planning periods are determined from the basic start date of the WBSelement. To enter costing items, you can also use planning forms (see Fig. �EasyCost Planning�). When you do this, characteristics (work in hours, for example)are valuated (with 100, for example). The characteristic values from the planningform are linked to quantities, values, or actions in the costing items (in Fig. �EasyCost Planning�, for example, to the quantity of an internal activity). Once you havetransferred the values, the costing items appear under the relevant WBS elements inthe structure.

Easy Cost Planning can be used as a simple preliminary costing for projects.The pre-planned costs are then replaced, for example, by a quantity structure ofnetworks/activities. You can also use Easy Cost Planning to create plan data for theproject execution phase. In this case, you can then use Execution Services to entercommitment and actual costs for the planned costs. In Customizing, you define theplan version in which values planned by Easy Cost Planning are stored.


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Figure 43: Easy Cost Planning

When you plan dates and resources in network activities, the system automaticallydetermines the corresponding planned costs as part of network costing. Planned costsare determined for the following objects:

� Activity inputs for internally-processed activities (internal activity)� Primary costs for externally-processed activities and service activities (external

service)� Primary costs for general costs activities� Primary costs for material components

Activity elements are costed as if they were activities.


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Figure 44: Network Costing

Sales PricingYou can use the sales pricing function to determine sales prices for a customer inquiryon the basis of the project cost plan. When doing so, you can also save different costestimates and process them later. You can also save sales pricing data as customerquotations and create more than one quotation. In the standard system, documenttype AP is used for project quotations. As an alternative or in addition to the above,you can transfer the sales pricing data to a billing plan in the project so that it canbe used for revenue planning.


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Figure 45: Sales Pricing

Revenue PlanningThe following methods can be used to plan revenues in your project:

� Manual revenue planning (structure-oriented, or on the basis of revenueelements). The latter of the two is revenue element and period based.

� Revenue planning using PS billing plans. This type of planning is revenueelement and period based.

� Revenue planning using SD documents (sales order items or even quotationitems). This type of planning is revenue element and period based.


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Figure 46: Revenue Planning

The �Sales Order and Billing Plan� diagram illustrates how revenues are plannedwith SD documents.

The customer has placed an order for project T-200##. You have agreed a sales priceof EUR 880,000 with the customer. Partial payments are due once production (activity4000) and assembly (activity 5000) are complete. You enter this information in thesystem by defining billing milestones for the activities.

You then create a sales order in the system and a billing plan for the item. You copythe billing milestones for activities 4000 and 5000 to the billing plan. You assignthe sales order item to the project billing element. This assignment forms the basisfor planning revenues in your project.

In the project execution phase, the locks for the individual items in the billing planare lifted automatically when activities 4000 and 5000 are confirmed. After a billingrun, actual project revenues can also be updated in this way automatically (see lesson�Milestone Billing and PS Cash Management�).


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Figure 47: Sales Order and Billing Plan


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Exercise 9: Cost and Revenue Planning

Exercise ObjectivesAfter completing this exercise, you will be able to:� Plan costs using Easy Cost Planning for WBS elements� Plan costs using network activities and analyze them in the project planning

board.� Optional: Carry out sales pricing.� Plan revenues for projects using sales documents.� Optional: Analyze costs and revenues with hierarchy reports.

Business ExampleYou will plan costs manually for investment project E-99## using Easy Cost Planning.To facilitate the planning process, planning forms are used that have already beenmaintained in the system.

For customer project T-200##, the costs are planned using the quantity structure forthe activities. The quotation is created on the basis of the project cost planning data.This involves rearranging the planned costs according to cost elements/activity typesand copying them as items in the quotation.

The customer accepts your quotation. In Sales and Distribution, a sales order is thencreated and assigned to project T-200##. In a billing plan for the order item, you storethe dates on which payment is due from the customer. You can evaluate the valuesin the order as planned project revenue.


Task 1: Easy Cost Planning � Project E-99##Plan costs for WBS elements at level 2 of investment project E-99##. To do so, useEasy Cost Planning and, if necessary, planning forms maintained in the system.

Optional: Analyze the costs using a hierarchy report.

1. Open project E-99## in the Project Builder. Call up Easy Cost Planning andcreate a cost estimate.



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Establish the costing version and costing variant that you want to use to createthe cost estimate.

Display the item view. Plan costs for WBS elements E-99##-1 Engineering,E-99##-2 Procurement, and E-99##-3 Assembly. To do so, select the relevantWBS element in the costing structure and choose a suitable planning form (forexample, display the list of all the planning forms and choose the appropriateplanning form for elevators, ZPS101, ZPS102, or ZPS103).

For Engineering (WBS element E-99##-1), use the planning form to plan costsfor 100 internal labor hours and additional costs of EUR 6,700.

For WBS element E-99##-2, plan procurement costs for an elevator with a laborcapacity 10, elevator location USA, and elevator cabin walls made of Metal.

For WBS element E-99##-3, use the planning form to plan costs for 120assembly hours.

A planning form does not exist in the system for Acceptance (WBS elementE-99##-4). For this WBS element, plan two items in the item view manually.Use item category E (internal activity) to plan costs for an activity input of 10hours from cost center (resource) 4295 for activity type 1463. Plan materialcosts (item category M) for 10 pieces of the material (resource) B-1000 (OfficeMaterial - Folders) from plant 1000. Copy the items to your cost estimate.

Then return to the Project Builder and save your cost planning data.

2. Optional: Use the hierarchy report Plan/Actual/Commitment/Rem.Plan/As-signed, which is based on the planned costs, in the Project System informationsystem to analyze the costs that you have planned for project E-99##. Expandthe data according to value categories and period/year. Then exit the report.

Task 2: Cost Planning via Activities � Project T-200##Costs for customer project T-200## are planned by means of the quantity structure forthe project activities. In addition to costs for internal/external activities and materials,you now want to plan additional primary costs using a further general costs activityand analyze the calculated costs in the project planning board.

Optional: Use a hierarchy report to analyze the planned costs for project T-200##.

1. Open project T-200## in the project planning board. Create a costs activity withthe activity number 1050 and the description Additional Costs for WBSelement T-200##.1 Engineering and Design. Use this activity to plan costsamounting to EUR 4,000 for the proposed cost element (466000).



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Redetermine the costs for the entire project (with new dates). Analyze theaggregated costs for the level 1 WBS element (T-200## Turbine) using thegraphical cost overview in the project planning board. Save the changes youhave made to your project and return to the SAP menu.

2. Optional: Use the hierarchy report Plan/Actual/Commitment/Rem.Plan/As-signed, which is based on the planned costs, in the Project System informationsystem to analyze the updated costs for project T-200##. Expand the dataaccording to value categories and period/year. Then exit the report.

Task 3: Optional: Customer Inquiry and Sales Pricing �Project T-200##Optional: In SD, create a customer inquiry and link the document to project T-200##.Use the planned costs for the project to create sales pricing data and a customerquotation.

Hint: You normally create the customer inquiry in SD before creating suitableproject structures in Project System.

1. In Sales in SD, create a customer inquiry. In the initial screen, enter inquiry typeIN (Inquiry), sales organization 1000, distribution channel 10, and division00. The sold-to party has the customer number 1600. The inquiry is to be validfor one month from today. Enter an item for material S-1300. Enter TurbineSystem as the description and order quantity 1.

Assign this inquiry item to project T-200##. To do so, enter WBS elementT-200## on the Account Assignment tab page in the detailed data for this item.On the Sales B tab page, enter DIP profile 13000001. This profile is later usedto control your sales pricing. Save the inquiry and return to the SAP menu.

2. Now use the sale pricing data to create a customer quotation. To do so, createsales pricing data for customer project T-200## in the Project System menu.First call up the sales price basis. In this screen, expand all the nodes in thestructure and double-click Primary Costs to display details on them.

Then call up the Sales Price screen. Display the conditions for the quotationheader (Project Quotation) and enter a transfer price surcharge of 10 % withcondition type HA00.

To conclude, create a corresponding quotation. When doing so, enterQuotation Gr## as the short text for sales pricing. Finally, return to theSAP menu.



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Task 4: Sales Order and Revenue Planning � ProjectT-200##The customer accepts your quotation. Create an appropriate sales order in SD andassign the SD document to project T-200##. Enter different payment dates in a billingplan for the sales order items. Use your project milestones when doing so. Analyzethe order values as planned project revenues in the Project System information system.

1. Create a sales order in SD. Enter the following data: order type PS1, salesorganization 1000, distribution channel 10, and division 00. The sold-to partynumber is 1600 with the order number Gr##. The required delivery date istoday + 8 months. Enter an item for material T-20000 with an orderquantity of 1.

Hint: When creating the sales order, you can use existing quotationsas a template. In this exercise, however, you will not use a templateto create the sales order.

Assign the order item in the detailed data for the item to WBS element T-200##(Account Assignment tab page). On the Conditions tab page, change the itemsales price manually by increasing the amount for condition type PR00 to EUR880,000.

Then create a billing plan (Billing Plan tab page) for the item. To do so, selectall the milestones that are selected via WBS element T-200## and copy themilestone dates to the billing plan.

Note the dates and values in the billing plan in the following table so that youcan compare them later with the planned revenues in the information system.

Billing Date Billing Value

Return to the item overview and save the sales order. Exit the screen forprocessing sales orders.

2. Optional: Use the hierarchy revenue report (Planned Contribution Margin)in the Project System information system to analyze the planned revenues forproject T-200## (if necessary, delete the sales order number from the selectionscreen). Expand the data according to Period/Year and then compare thedisplayed data with the dates and values in the billing plan for the sales orderitem that you noted in the previous step. Then return to the SAP menu.


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Solution 9: Cost and Revenue PlanningTask 1: Easy Cost Planning � Project E-99##Plan costs for WBS elements at level 2 of investment project E-99##. To do so, useEasy Cost Planning and, if necessary, planning forms maintained in the system.

Optional: Analyze the costs using a hierarchy report.

1. Open project E-99## in the Project Builder. Call up Easy Cost Planning andcreate a cost estimate.

Establish the costing version and costing variant that you want to use to createthe cost estimate.

Display the item view. Plan costs for WBS elements E-99##-1 Engineering,E-99##-2 Procurement, and E-99##-3 Assembly. To do so, select the relevantWBS element in the costing structure and choose a suitable planning form (forexample, display the list of all the planning forms and choose the appropriateplanning form for elevators, ZPS101, ZPS102, or ZPS103).

For Engineering (WBS element E-99##-1), use the planning form to plan costsfor 100 internal labor hours and additional costs of EUR 6,700.

For WBS element E-99##-2, plan procurement costs for an elevator with a laborcapacity 10, elevator location USA, and elevator cabin walls made of Metal.

For WBS element E-99##-3, use the planning form to plan costs for 120assembly hours.

A planning form does not exist in the system for Acceptance (WBS elementE-99##-4). For this WBS element, plan two items in the item view manually.Use item category E (internal activity) to plan costs for an activity input of 10hours from cost center (resource) 4295 for activity type 1463. Plan materialcosts (item category M) for 10 pieces of the material (resource) B-1000 (OfficeMaterial - Folders) from plant 1000. Copy the items to your cost estimate.

Then return to the Project Builder and save your cost planning data.

a) Open project E-99## in the Project Builder. To do so, choose SAP Menu→ Accounting→ Project System→ Project→ Project Builder and thenchoose project E-99## Elevator Gr## in the worklist. To display all ofthe WBS elements, choose Expand All.



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To call up Easy Cost Planning, choose Easy Cost Planning.

Hint: If Easy Cost Planning has been activated to use multipleplan versions in customizing, the system displays a dialogue boxfor defining the version that you want to plan.

If cost planning for projects with Easy Cost Planning has not beenactivated for using multiple versions, the system just displays adialogue box defining the costing variant. The plan version isthen entered in customizing.

The costing variant PS06 is used for easy cost planning.

Confirm the data in the following dialog box by choosing CreateCost Estimate.

The costing structure is displayed on the left of the screen. Planned valuesdo not exist yet. To enable you to analyze details on costing items at a laterstage, choose Show/Hide Item View.

Hint: In the following steps, you can only plan costs for WBSelements that have been flagged as planning elements. If youhave not flagged all of the level 2 WBS elements as planningelements, you first have to return to the Project Builder and selectthe Planning Element operative indicator for these WBS elements.

b) Select WBS element E-99##-1 (Engineering) in the costing structure andchoose Choose Planning Form. To display a list of all the planning forms,choose Start Search. In the list, select costing model ZPS101 Elevator:Engineering and confirm your selection by choosing Copy.

Then enter the following characteristic values in the planning form:

Field Name ValuesInternal Labor Hours 100

Additional Costs (Euros): 6,700



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Choose Confirm. In the costing structure on the left, various items aredisplayed under the WBS element along with the different planned values.Detailed data for the individual items is displayed in the item view in thebottom right of the screen.

Hint: In the item view, you can add further items manually andcopy them to the cost estimate.

c) Following the same procedure as before, create a cost estimate for WBSelement E-99##-2 (Procurement). Select the WBS element in the costingstructure and choose planning form ZPS102 Elevator: Procurement.

Then enter the following characteristic values in the planning form:

Field Name ValuesLabor Capacity 10Elevator Location USAElevator Cabin Walls Metal

Choose Confirm.

d) Following the same procedure as before, create a cost estimate for WBSelement E-99##-3 (Assembly). Select the WBS element in the costingstructure and choose planning form ZPS103 Elevator: Assembly.

Then enter the following characteristic value in the planning form:

Field Name ValuesAssembly Hours 120

Choose Confirm.

e) A predefined planning form does not exist for WBS element E-99##-4(Acceptance). To plan costs for Acceptance, select the WBS element in thecosting structure and choose Append Row on the right in the item view(if necessary, display by choosing Show/Hide Item View) . Enter thefollowing data in the two empty rows in the item view:



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ItemCategory

Quantity Resource Plant/Activity Type

E 10 4295 1463

M 10 B-1000 1000

Confirm your entries with Enter and then choose Confirm.

Exit Easy Cost Planning and save the changes you have made to yourproject by choosing Back and Save. To exit the Project Builder,choose Exit.

2. Optional: Use the hierarchy report Plan/Actual/Commitment/Rem.Plan/As-signed, which is based on the planned costs, in the Project System informationsystem to analyze the costs that you have planned for project E-99##. Expandthe data according to value categories and period/year. Then exit the report.

a) To start the hierarchy report, choose Project System→ InformationSystem→ Financials→ Costs→ Plan-Based → Hierarchical →Plan/Actual/Commitment/Rem.Plan/Assigned. Enter E-99## in theProject field on the selection screen and choose Execute.

The planned costs are displayed sorted according to the individual WBSelements. To carry out an analysis according to value categories, chooseValue Category on the left in the navigation panel. To expand the displayaccording to periods, choose Period/Year in the navigation panel.

To exit the report, choose Back and confirm the dialog box with Yes.

Task 2: Cost Planning via Activities � Project T-200##Costs for customer project T-200## are planned by means of the quantity structure forthe project activities. In addition to costs for internal/external activities and materials,you now want to plan additional primary costs using a further general costs activityand analyze the calculated costs in the project planning board.

Optional: Use a hierarchy report to analyze the planned costs for project T-200##.

1. Open project T-200## in the project planning board. Create a costs activity withthe activity number 1050 and the description Additional Costs for WBSelement T-200##.1 Engineering and Design. Use this activity to plan costsamounting to EUR 4,000 for the proposed cost element (466000).



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Redetermine the costs for the entire project (with new dates). Analyze theaggregated costs for the level 1 WBS element (T-200## Turbine) using thegraphical cost overview in the project planning board. Save the changes youhave made to your project and return to the SAP menu.


To create a new activity for WBS element T-200##.1, select WBS elementT-200##.1 Engineering and Design on the left in the table area of theproject planning board and then choose Create.

The system displays a window on the left containing different templates.Choose the activity (not the activity element) Individual Objects→ Activity→ Costs. In the project planning board overview, a new activity hasbeen created under WBS element T-200##.1 Engineering and Design.Close the template area by choosing Open/Close Left-Hand Window.

To call up the detail screen, choose the new activity in the table area.Change the costs activity data as follows:


Text (without caption) Additional Costs

Amount 4,000


To return to the overview in the project planning board, choose Back.

b) Calculate the project costs again. To do so, select all the WBS elementsand activities with Select All and then choose Calculate Costs.When doing so, update the project dates by choosing Yes in the dialog boxfor cost calculation.

Hint: In the table area of the project planning board, you canalready see the calculated costs for the activities in the Project CostPlan column. When activities are assigned to WBS elements, theplanned costs for the WBS elements are displayed in aggregatedform, which means that the level 1 WBS element shows theplanned costs for the entire project.



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From the detail screen for activities, you can call up aplanned/actual comparison for the activities. You can run a costreport for selected WBS elements via the Extras menu. You canalso use the Cost Overview in the project planning board to carryout a graphical analysis of the distribution of the planned costswith regard to time.

To analyze the aggregated planned costs of the level 1 WBS elementgraphically, select WBS element T-200## Turbine only on the left inthe table area, and choose Cost Overview. In the lower part of theproject planning board, the planned costs are displayed in the Cost/RevenueOverview and aggregated for the individual periods.

Save the changes you made to your project and exit the project planningboard by choosing Save and Back.

2. Optional: Use the hierarchy report Plan/Actual/Commitment/Rem.Plan/As-signed, which is based on the planned costs, in the Project System informationsystem to analyze the updated costs for project T-200##. Expand the dataaccording to value categories and period/year. Then exit the report.

a) To start the hierarchy report, choose Project System→ InformationSystem→ Financials→ Costs→ Plan-Based → Hierarchical →Plan/Actual/Commitment/Rem.Plan/Assigned. Enter project T-200## inthe selection screen and choose Execute.

The planned costs are displayed sorted according to the individual WBSelements. To analyze the individual activities, expand the structure in thereport. To carry out an analysis according to value categories, chooseValue Category on the left in the navigation panel. To expand the displayaccording to periods, choose Period/Year in the navigation panel.

To exit the report, choose Back and confirm the dialog box with Yes.



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Task 3: Optional: Customer Inquiry and Sales Pricing �Project T-200##Optional: In SD, create a customer inquiry and link the document to project T-200##.Use the planned costs for the project to create sales pricing data and a customerquotation.

Hint: You normally create the customer inquiry in SD before creating suitableproject structures in Project System.

1. In Sales in SD, create a customer inquiry. In the initial screen, enter inquiry typeIN (Inquiry), sales organization 1000, distribution channel 10, and division00. The sold-to party has the customer number 1600. The inquiry is to be validfor one month from today. Enter an item for material S-1300. Enter TurbineSystem as the description and order quantity 1.



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Assign this inquiry item to project T-200##. To do so, enter WBS elementT-200## on the Account Assignment tab page in the detailed data for this item.On the Sales B tab page, enter DIP profile 13000001. This profile is later usedto control your sales pricing. Save the inquiry and return to the SAP menu.

a) To create a customer inquiry, choose SAP Menu→ Logistics→ Salesand Distribution→ Sales→ Inquiry→ Create. Enter the following dataon the initial screen:

Field Name ValuesInquiry Type IN



Division 00


In the inquiry overview screen, enter the following data:

Field Name ValuesSold-to party 1600

Valid From Today’s date

Valid To Today + 1 month

Material S-1300

Order quantity 1

Description Turbine system


b) To call up the details for this item, choose item number 10. The Item Datascreen is now displayed. Choose the Account Assignment tab page andenter T-200## in the WBS Element field. Now call up the Sales B tabpage and enter DIP profile 13000001 for subsequent sales pricing.

To save the inquiry, choose Save. The inquiry number is displayedbelow in the status bar. Return to the SAP menu by choosing Back(twice).



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2. Now use the sale pricing data to create a customer quotation. To do so, createsales pricing data for customer project T-200## in the Project System menu.First call up the sales price basis. In this screen, expand all the nodes in thestructure and double-click Primary Costs to display details on them.

Then call up the Sales Price screen. Display the conditions for the quotationheader (Project Quotation) and enter a transfer price surcharge of 10 % withcondition type HA00.

To conclude, create a corresponding quotation. When doing so, enterQuotation Gr## as the short text for sales pricing. Finally, return to theSAP menu.

a) To create the sales pricing data, choose SAP Menu→ Logistics→ ProjectSystem→ Financials→ Planning→ Sales Pricing. In the initial screen,enter T-200## in the Project Definition field for the selection. Thenchoose Sales Price Basis.

To expand the structure, first choose Expand All Nodes. Thendouble-click Primary Costs in the structure. If required, move the linebetween the structure and the lower area so that you can see everythingyou need to.

Hint: In the lower area, you can now analyze the planned amounts,the transfer amounts, and the sales price. You can change thetransfer amount here with regard to the amount, percentage, orquantity and then block it. The Sales Price Basis screen enablesyou to process quotation items dynamically. The sales price screen,however, enables you to process the subsequent quotation.

b) To call up the sales price screen, choose Sales Price.

Hint: You can now see the structure of the quotation (along withthe quotation header, item, and sub-item). A condition schema islocated in the lower part of the screen. You can display and, ifnecessary, change the conditions for the individual levels in thestructure by double-clicking them.

Choose Project Quotation of the Item column in the structure. Differentconditions for the quotation header are displayed in the lower part of thescreen. To add a new condition, enter the following data in a new rowat the bottom of the table:



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CnTy AmountHA00 10

Confirm your entries with Enter. The condition value is determined andthe sale price is adapted accordingly.

c) To create a quotation, choose Quotation. Confirm the prompt to createthe quotation by choosing Yes. Then enter Quotation Gr## as thesales pricing short text and confirm your entry with Enter.

The system creates and then displays a quotation. Enter a valid to date ofToday + 1 month. Save the Quotation. To return to the SAP menu, chooseBack (twice).

Hint: You can create as much sales pricing data as you require fora project. The values determined during sales pricing can also beupdated to a PS billing plan for revenue planning purposes.

Task 4: Sales Order and Revenue Planning � ProjectT-200##The customer accepts your quotation. Create an appropriate sales order in SD andassign the SD document to project T-200##. Enter different payment dates in a billingplan for the sales order items. Use your project milestones when doing so. Analyzethe order values as planned project revenues in the Project System information system.

1. Create a sales order in SD. Enter the following data: order type PS1, salesorganization 1000, distribution channel 10, and division 00. The sold-to partynumber is 1600 with the order number Gr##. The required delivery date istoday + 8 months. Enter an item for material T-20000 with an orderquantity of 1.

Hint: When creating the sales order, you can use existing quotationsas a template. In this exercise, however, you will not use a templateto create the sales order.

Assign the order item in the detailed data for the item to WBS element T-200##(Account Assignment tab page). On the Conditions tab page, change the itemsales price manually by increasing the amount for condition type PR00 to EUR880,000.



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Then create a billing plan (Billing Plan tab page) for the item. To do so, selectall the milestones that are selected via WBS element T-200## and copy themilestone dates to the billing plan.

Note the dates and values in the billing plan in the following table so that youcan compare them later with the planned revenues in the information system.

Billing Date Billing Value

Return to the item overview and save the sales order. Exit the screen forprocessing sales orders.

a) To create the sales order, choose SAP Menu→ Logistics→ Sales andDistribution→ Sales→ Order→ Create. Enter the following data onthe initial screen:

Field Name ValuesOrder Type PS1



Division 00


In the order overview screen, enter the following data:

Field Name ValuesSold-to party 1600

Purchase Order Number Gr##

Required Delivery Date Today + 1 year

Material T-20000

Order quantity 1



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Confirm your entries with Enter. If necessary, confirm the prompt toreschedule the invoice date with Enter. Create the order without usingquotation templates. To do so, choose Continue in the Open Quotationsfor Item dialog box. Confirm the following information windows withEnter.

b) To assign the order item to your project, choose item number 10 in theoverview and call up the item data on the Account Assignment tab page.Enter T-200## in the WBS Element field.

Call up the Conditions tab page and increase the amount in the conditiontype row (CnType) PR00 to EUR 880,000. Confirm your changes withEnter so that the condition values are adapted.

c) To create a billing plan for the item, call up the Billing Plan tab page. WBSelement T-200## is then proposed as the selection criterion for selectingmilestones. Confirm the dialog box with Enter. The two milestonesfor your project are now displayed in a list. Choose Select All andthen Copy.

Hint: The dates of the two milestones for your project aredisplayed in the Billing Date column. The associated billing valuesare determined from the percentages of the milestones and the netitem value. The milestones are assigned to activities. If the activitydates are changed, the dates of the milestones also change alongwith the dates in the billing plan.

When you assign the order item to your project, the billing valuesare copied as planned revenues for the milestone date periods toproject revenue planning.

Note the dates and billing values of the billing plan in the table provided.

To save the sales order, choose Back and then Save. The sales ordernumber is displayed in the status bar. Finally, return to the SAP menu.To do so, choose Back twice.

2. Optional: Use the hierarchy revenue report (Planned Contribution Margin)in the Project System information system to analyze the planned revenues forproject T-200## (if necessary, delete the sales order number from the selection



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screen). Expand the data according to Period/Year and then compare thedisplayed data with the dates and values in the billing plan for the sales orderitem that you noted in the previous step. Then return to the SAP menu.

a) Choose, for example, SAP Menu→ Logistics→ Project System→Information System → Financials → Revenues and Earnings →Hierarchical→ Planned Contribution Margin. Enter T-200## in theProject Definition field and, if necessary, delete the content of the SalesDocument field. To start the report, choose Execute.

The planned revenues are displayed for billing element T-200## of theproject. The list is currently sorted by object. To expand the data accordingto period/year, choose Period/Year in the navigation panel. Compare theperiods of the planned revenues and their amounts with the dates andvalues in the billing plan for the sales order item.

To exit the report, choose Back and then confirm the dialog box with Yes.


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Lesson Summary

You should now be able to:� Name different methods for planning project costs and revenues� Plan costs using Easy Cost Planning for a work breakdown structure� Explain the concept behind network costing� Name the sales pricing functions� Carry out project revenue planning using sales orders


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PLM200 Unit Summary

Unit SummaryYou should now be able to:� Plan basic dates for WBS elements by means of the project planning board� Name the basic characteristics of scheduling� Explain the concept behind planning internal and external activities by means

of network activities� Distribute work among the workforce� Explain the material planning functions in the SAP Project System (SAP PS)� Name the benefits of transferring BOMs� Name different methods for planning project costs and revenues� Plan costs using Easy Cost Planning for a work breakdown structure� Explain the concept behind network costing� Name the sales pricing functions� Carry out project revenue planning using sales orders


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Unit Summary PLM200


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Unit 5Budget

Unit OverviewThe budget is the approved and binding cost framework for a project within aparticular period of time. This unit provides you with an introduction to managingproject budgets with SAP Project System.


� Budget WBS elements� Name the budgeting functions in Project System� Explain how project budgeting can be integrated in investment management

Unit ContentsLesson: Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .156

Exercise 10: Budget... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .163


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Unit 5: Budget PLM200

Lesson: Budget

Lesson OverviewUsing investment project E-99## as an example, this lesson shows you how tomanage the project budget using the SAP Project System (SAP PS). It also providesan overview of how you can integrate SAP PS in the SAP system investmentmanagement application.


� Budget WBS elements� Name the budgeting functions in Project System� Explain how project budgeting can be integrated in investment management

Business ExampleSince you are the person responsible for investment project E-99##, you assignbudgets to work packages and subtrees of your project. Cost planning for this projectis used as a basis for assigning the budgets.

Cost Planning and BudgetingWhereas you must estimate your project costs as accurately as possible during theplanning phase, it is in the approval phase that funds are actually allocated in theform of a budget. The budget is the approved cost framework for a project. It differsfrom the cost plan in that it is binding.


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PLM200 Lesson: Budget

Figure 48: Cost Planning and Budgeting

Cost planning is normally carried out before project budgeting and forms the basisfor proposing and approving the budget. Once the planning phase is complete, theproject is approved and budgeted (assigned an original budget) by a decision-makingcommittee (management, for example). The project manager then distributes thebudget to the individual WBS elements at subordinate levels according to thetop-down principle. Since SAP PS supports detailed planning of project costs, someor all of the values defined in planning will most likely be adopted as the budget.

Budgeting Functions: OverviewThe �Budgeting Overview� diagram shows the different budget management functionsavailable in SAP PS.


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You can use the Maintain Original Budget transaction to allocate funds for a projector part of a project. In the budget profile, you can specify whether funds should beassigned as overall values or distributed by year. Different budgeting views areavailable for displaying different values and checking the consistency of a budget:

� You can use the Distributed/Distributable views to check the distribution of thebudget throughout the project structure. The budgets within the project must bedistributed consistently, that is, the budget of a WBS element must be greater thanor equal to the budgets of the lower-level WBS elements assigned directly to it.

� You use the Cumulative/Remaining views to check the distribution of the budgetover fiscal years. The total budget of each WBS element must be greater than orequal to the total of the annual values.

� The planned total is derived from cost planning, and can be transferred tobudgeting in this view.

You can prevent users from maintaining the overall budget for a project by assigningappropriate user statuses. If you lock (freeze) the original budget in this way, you canonly change it by defining supplements, returns, and transfers (referred to collectivelyas budget updates). You can use the budget release function to make funds availableat various points within a fiscal year. You can use the budget carryforward functionto transfer any funds not used up in the previous fiscal year to the budget of the newfiscal year.


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Figure 49: Budgeting Overview

When a project is being executed, various centers use the available funds.Commitments are created, and actual costs are incurred. Together with the costs ofapportioned orders, both these forms of fund commitments result in what are referredto as assigned funds. The funds overview can be regarded as a passive availabilitycontrol, although Project System also provides an active availability control. Duringthe availability control, the corresponding assigned funds are calculated and checkedagainst the budget. If certain tolerance thresholds are breached (shortfall in budget,budget exceeded), this can trigger various system reactions (a warning, for example,or an error message). In Customizing for the tolerance limits, you can specify whichreaction should be triggered and when. Once activated, availability control is run foreach subsequent posting in the project. During the availability control:

� The budget-bearing WBS elements (called controlling elements) are determined� The corresponding assigned funds are determined� The assigned funds are checked against the budgets of the controlling elements.

The assigned funds can be found in the budget-bearing WBS element itself andin the lower-level assignable WBS elements (account assignment elements)


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Figure 50: Assigned Funds and Availability Control

Distributing Budget from an Investment ProgramAn investment program provides you with a complete overview of the plannedcompany investments. You can structure it in hierarchical form according to yourrequirements and assign orders and projects (your investment tasks) to the requiredhierarchy nodes (investment program items). You create investment programs withreference to an approval year in the SAP investment management application. You canuse the Default Plan Value transaction to copy the cost planning data of investmentmeasures (investment projects and investment orders) to the cost planning data of theinvestment program items. You can copy the plan versions of your choice here. Theitems are budgeted in the investment program. You can use the cost planning dataof the investment program as a proposal for budgeting. The investment programbudget values can then be distributed (control parameter: program type) among theinvestment measures (in our example, the level 1 WBS element of the investmentproject). In SAP PS, you can then distribute the budget values further from the level 1WBS element to lower-level WBS elements.

If the investment management system has not been implemented, you can budget yourprojects directly in SAP PS as described earlier.


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Figure 51: Budget Distribution from Investment Management


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Exercise 10: Budget

Exercise ObjectivesAfter completing this exercise, you will be able to:� Distribute the original budget to WBS elements� Optional: Analyze budgets in the project information system

Business ExampleYou have planned costs for executing investment project E-99##. As the projectmanager, you now use these planned values as default values for distributing thebudget to the WBS elements in your project. You then check the assigned funds (costsof assigned orders, commitments, and actual costs for WBS elements) against thesebudget values. If any tolerance limits are exceeded, the system can react in differentways (warning messages, e-mails to project manager, error messages) when you tryto post the data. You do not need to budget the level 3 WBS elements. The fundsassigned for these WBS elements are checked against the funds of the correspondinglevel 2 WBS elements.


Task: Budget Distribution � Project E-99##You distribute the original budget to the WBS elements at level 1 and 2 of investmentproject E-99##.

Optional: Analyze the project budget in the information system of Project System.

1. In the Project System menu, enter the original budget for the WBS elementsat levels 1 and 2 in project E-99##. To copy the planned values, which aredisplayed in the Planned Total view, for level 2 WBS elements as budget valuesfor these WBS elements, use the Copy View function. Copy the planned total forthe current fiscal year and, if your project lasts until next year, for the next fiscalyear too. The planned costs should be copied in their entirety (that is, 100 %).



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To determine the required budget for the WBS element E-99## at level 1, totalup the budget values for the relevant fiscal years. Enter Original BudgetGr## as the document text. Save the distribution of the original budget andexit the transaction.

Hint: When WBS elements are assigned to an investment programitem, budgeting for these WBS elements can also be carried out in theinvestment management system. The project manager then distributesthe budget made available in investment management for theseinvestment measures to lower-level WBS elements in Project System.

2. Optional: Analyze the original budget for project E-99## in theinformation system of Project System. To do so, use the budget-based reportBudget/Actual/Commitment/Rem.Plan/Assigned.

From the report, call up the screen displaying the line items for the projectbudget values. Adjust the layout of the line item report in such a way that thedocument number, document date, and text of the report are also displayed.Then return to the SAP menu.


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Solution 10: BudgetTask: Budget Distribution � Project E-99##You distribute the original budget to the WBS elements at level 1 and 2 of investmentproject E-99##.

Optional: Analyze the project budget in the information system of Project System.

1. In the Project System menu, enter the original budget for the WBS elementsat levels 1 and 2 in project E-99##. To copy the planned values, which aredisplayed in the Planned Total view, for level 2 WBS elements as budget valuesfor these WBS elements, use the Copy View function. Copy the planned total forthe current fiscal year and, if your project lasts until next year, for the next fiscalyear too. The planned costs should be copied in their entirety (that is, 100 %).



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To determine the required budget for the WBS element E-99## at level 1, totalup the budget values for the relevant fiscal years. Enter Original BudgetGr## as the document text. Save the distribution of the original budget andexit the transaction.

Hint: When WBS elements are assigned to an investment programitem, budgeting for these WBS elements can also be carried out in theinvestment management system. The project manager then distributesthe budget made available in investment management for theseinvestment measures to lower-level WBS elements in Project System.

a) To distribute the original budget in the Project System, choose SAP Menu→ Accounting→ Project System→ Financials→ Budgeting→ OriginalBudget→ Change. Enter project E-99## in the Project Definition fieldand choose Original Budget.

Hint: In the table area, you can maintain budget values for theindividual WBS elements in the entry column on the left. Thecolumns on the right show different views (distributed budgetor planned costs). You can define the fiscal year for the budgetdistribution in the Period field above the table area.

Choose the current fiscal year in the Period field. To copy the plannedcosts of the level 2 WBS elements as the original budget, select all WBSelements by choosing Select All. Then select the Planned Total columnby clicking the column header once. Then choose Edit→ Copy View andconfirm the dialog box with the proposed percentage of 100% by choosingEnter. The corresponding values are displayed in the Budget column.

If necessary, call up the overview of the next fiscal year and copy thevalues in the Planned Values view to the Budget column in the same way.

b) To determine the budget for the level 1 WBS element, choose Edit→Total Up and confirm the dialog box with the proposed annual valuesby choosing Enter. The required budget for WBS element E-99## isdisplayed in the Budget column.

To enter a document text, choose Document Text. In the dialog box,enter Original budget Gr## in the Text field and confirm this bychoosing Enter. To save the budget distribution, choose Save. Thenexit the transaction by choosing Back.



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2. Optional: Analyze the original budget for project E-99## in theinformation system of Project System. To do so, use the budget-based reportBudget/Actual/Commitment/Rem.Plan/Assigned.

From the report, call up the screen displaying the line items for the projectbudget values. Adjust the layout of the line item report in such a way that thedocument number, document date, and text of the report are also displayed.Then return to the SAP menu.

a) To execute the report, choose Project System → InformationSystem → Financials → Costs → Budget-Related →Budget/Actual/Commitment/Rem.Plan/Assigned. Enter project E-99##in the Project field and choose Execute to start the report. The systemdisplays the original budget for the various WBS elements at level 1 and 2in your project. Actual costs, commitment costs, and other assigned valueshave not been generated for your project.

b) To branch to the line item report, select the column with the budget valuesby clicking the column header Budget Overall once, and then choose Goto→ Line Items.

Adjust the layout of the line item display by choosing Change Layout....Under Column Set in the dialog box, select the Document Number row andcopy it to the list of columns by choosing Show Selected Fields. Tocopy the Document Date and Text fields to the list of columns, proceed inthe same way. Then choose Enter to confirm your selection.

The system displays the additional columns. To return to the SAP menu,choose Back twice, and confirm the dialog boxes with Yes.


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Lesson Summary

You should now be able to:� Budget WBS elements� Name the budgeting functions in Project System� Explain how project budgeting can be integrated in investment management


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PLM200 Unit Summary

Unit SummaryYou should now be able to:� Budget WBS elements� Name the budgeting functions in Project System� Explain how project budgeting can be integrated in investment management


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Unit Summary PLM200


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Unit 6Execution

Unit OverviewThe activities and processes planned at the beginning of the project are carried outduring the execution phase. This includes, for example, entering the actual dates forstarting and finishing work packages. The activities carried out by the employees inyour company are documented using confirmations. Processes for procuring materialsand services are triggered and the documents that result from this are assigned toproject structures. Where appropriate, invoices are created and unplanned variancesdocumented. The actual data generated is compared with the planned dates, costs, andso on. This unit gives you an overview of the processes supported by the SAP ProjectSystem that help you execute your projects. Processes typical to the execution phaseof projects are also discussed.


� Enter actual dates for WBS elements� Explain the function of confirmations and name different confirmation methods� Confirm time data by means of CATS� Use Execution Services for posting documents� Demonstrate the various ProMan functions� Explain the purchasing process� Explain the role of Claims� Describe the process and benefits of milestone billing� Explain the purpose of PS Cash Management

Unit ContentsLesson: Actual Dates and Confirmations .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .173

Exercise 11: Actual Dates and Confirmations ... . . . . . . . . . . . . . . . . . . . . . . . . . . .177


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Unit 6: Execution PLM200

Lesson: Assigning Documents, Procurement Processes, and ClaimManagement.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .189

Exercise 12: Execution Services, Procurement Process, and ClaimManagement .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .197

Lesson: Milestone Billing and PS Cash Management ... . . . . . . . . . . . . . . . . . . . . . .212Exercise 13: Milestone Billing.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .217

Figure 52: Aspects of Project Execution


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PLM200 Lesson: Actual Dates and Confirmations

Lesson: Actual Dates and Confirmations

Lesson OverviewThis lesson shows you how to enter actual dates for the different project structuresin the SAP Project System (SAP PS) and compare them with the planned dates. Toenter time data for networks, you will use the Cross-Application Time Sheet as wellas other confirmation methods.


� Enter actual dates for WBS elements� Explain the function of confirmations and name different confirmation methods� Confirm time data by means of CATS

Business ExampleOnce project E-99## has been budgeted, it is released and ready to be executed. Theactual dates are compared with the dates that were originally planned.

You can also start designing and building the turbine system for project T-200##after the order has been received. The employees enter the work carried out for thisproject using confirmations.

Actual Dates for WBS ElementsDuring the planning phase, you entered basic dates for WBS elements by creatinggraphical time bars in the project planning board, for example. In the execution phase,you can set actual dates in the same way in the project planing board. The statusPartially Released or Released must be set before you can enter actual start and actualend dates for WBS elements. To monitor dates in the project, you compare the basicdates with the actual dates, that is, you compare the planned dates with the actual datesor forecasted completion dates. You can use the project planning board or structureinformation system for analysis purposes.


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Figure 53: Actual Dates for WBS Elements

ConfirmationsConfirmations document the processing status of activities and activity elements ina network, and enable you to make forecasts as to how the project will progress.Various functions are carried out automatically by means of confirmations, such asposting actual costs, actual dates, actual labor and, if necessary, changing the activitystatus. The �Confirmation Options� diagram shows different methods for enteringconfirmations.


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Figure 54: Confirmation Options

While you use individual confirmations to enter confirmation data for a network,activity, activity element, or capacity split only, you can create confirmations for morethan one object in a collective confirmation. You can create individual or collectiveconfirmations in the SAP system or on the Internet. In the structure informationsystem, you can also select more than one activity or activity element and send themto another user or organizational unit as a confirmation workflow.

You can also use the Cross-Application Time Sheet (CATS) to enter time data. Youcan enter data using the appropriate transactions in the SAP system, via the Internet,as well as offline using the �Mobile Time and Travel� solution. You can also use adevice that utilizes the Palm Operating System (such as a Palm Pilot) and the OpenProject System (Open PS) interface to enter confirmation data offline, that is, withouta direct connection to a SAP system, and then transfer it to the SAP system. Youcan also import data from other PDC systems via standardized interfaces and use itto create confirmations.

CATS is a cross-component transaction for entering activities carried out in theSAP Human Capital Management (HR), Project System (PS), Plant Maintenance(PM), Customer Service (CS), Management Accounting (CO), and Procurement andLogistics Execution external services (MM-SRV). You can use data entry profiles todefine the layout of the Cross-Application Time Sheet yourself. In a worklist, you


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can display assignments made when the work was distributed among the employeesas a set of proposals for entering time data. Reports transfer the released (and, insome cases, approved) data to the different applications. The actual time data may beimportant for various applications simultaneously. In this case, the data is transferredto all applications in question.

Figure 55: Cross Application Time Sheet (CATS)

You cannot use CATS to enter confirmations for production orders because productionconfirmations deal primarily with yields and scrap quantities. You can, however, useCATS to enter hours and assign them to the receiver object �production order� (Orderfield). When transferred to Management Accounting (CO), the hours are posted asan internal activity allocation in the production order.


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Exercise 11: Actual Dates and Confirmations

Exercise ObjectivesAfter completing this exercise, you will be able to:� Enter actual dates for WBS elements� Create individual confirmations in the project planning board� Optional: use CATS for entering time data� Analyze the actual data in a cost element report

Business ExampleYou now want to execute investment project E-99##. To do so, release the projectand enter actual dates for starting and finishing work packages (WBS elements). Youcompare these actual dates with the planned dates in order to see if there are any delays.

You will also release customer project T-200## once the sales order has been received.The work carried out for the project activities is entered using confirmations. Thisinvolves determining both actual dates and actual costs for the activities, which arethen displayed in aggregated form in the project structure.

In the information system, the actual data generated during the project execution phaseis compared with the original planned values so that the project can be tracked andany deviations analyzed.


Task 1: Preparation: Cost Element ReportTo analyze the commitment and actual costs incurred during the execution phase forprojects E-99## and T-200##, use a cost element report.

1. Open a second session (session 2). You will use this session to analyze datain all the project execution exercises. In this session, call up the plan-basedcost element report Actual/Commitment/Total/Plan in CO Area Currency in theinformation system in Project System. Select investment project E-99## andcustomer project T-200##. The selection is to include both the current and thefollowing two fiscal years. Save your selection as a variant with the variantname Gr## and description Variant Gr##.



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Execute the report. Adapt the report options in such a way that further functionsare available via expert mode. Stay in session 2 in this cost element report forthe following exercises.

Task 2: Actual Dates for WBS Elements � Project E-99##Once you have released investment project E-99##, enter actual start and actual enddates in the project planning board for various WBS elements in this project. In theproject planning board, compare the actual dates with the planned dates.

1. Switch to session 1 to continue processing the data. In this session, changeproject E-99## in the project planning board. First, set the status of all theobjects in this project to Release.

To enter actual dates on the graph in the diagram area of the project planningboard, display the set of actual dates. Use your mouse to create time bars forthe actual dates of all the WBS elements at level three and for WBS elementE-99##-3 Assembly.

Determine the actual dates of the higher-level WBS elements too. To do so, usethe Extrapolate Dates function. Why has only an actual start date been set forthe level 1 WBS element E-99## Elevator Gr##?

Save your changes.

Hint: In the following exercise steps, actual project data is updated.For the purpose of the exercises, we will presume that we are alreadywell into the future.

Task 3: Confirming Activities � Project T-200##Once you have released project T-200##, enter confirmations for the project activitiesin the project planning board. In the cost element report, you analyze the actual costsincurred by the confirmations for the activities.

Optional: Use the CATS to enter time data for project T-200##. Transferring this datato Project System generates confirmations for activities.

1. Open project T-200## in the project planning board (session 1) and select thestatus Release for all the objects.



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In the project planning board, enter final confirmations for activities 1000Engineering of Drawing/Calculation/Design and 1100 Engineering of RunningGear. In the confirmations, enter actual start and actual end dates that are laterthan the earliest planned dates for the activities. In the confirmations, use actuallabor values that are slightly different to the planned values.

If necessary, display the actual dates in the project planning board to comparethe confirmed dates with the planned dates. Save the changes and return to theSAP menu.

2. Optional: Use CATS classic in the Project System menu to enter time data.In the initial screen, enter 1301 as the data entry profile and the personnelnumber 1920+## (for exercise group 01: 1921, for ## = 02: personnel number1922, and so on).

Hint: During resource planning, you assigned the person with thepersonnel number 1920+## to activity 1200 Engineering of Case inproject T-200## and distributed work to this employee. This assignmentis displayed along with the planned data in the Worklist in the CATSentry screen.

Navigate in the data entry period until the hours planned in workforce planningare displayed in theWorklist in individual periods. Copy the account assignmentdata in the worklist to the data entry section and enter time data for certain days.When you are doing this, it is assumed that the relevant period in the future hasalready been reached and that the work for activity 1200 has been carried out.Save your time data and return to the SAP menu.

To ensure that the time data you have entered is available in other applications,you have to transfer it to the appropriate target applications. To do so, carry outa cross-component transfer. For the selection criteria, enter personnel number1920+## and Project System as the target application. Before executing thisprocess, ensure that the Test Run indicator is not selected. Then return to theSAP menu.

3. Use the cost element report in session 2 to analyze the actual costs that wereupdated to the activities in project T-200## as a result of the confirmations. Todo so, refresh the report data.

From the report, call up the screen displaying the line items for the actualcosts. Adjust the layout of the line item report in such a way that the documentnumber and user are also displayed in the appropriate columns. Call up a sourcedocument for one of the line items. Then return to the cost element report.


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Solution 11: Actual Dates and ConfirmationsTask 1: Preparation: Cost Element ReportTo analyze the commitment and actual costs incurred during the execution phase forprojects E-99## and T-200##, use a cost element report.

1. Open a second session (session 2). You will use this session to analyze datain all the project execution exercises. In this session, call up the plan-basedcost element report Actual/Commitment/Total/Plan in CO Area Currency in theinformation system in Project System. Select investment project E-99## andcustomer project T-200##. The selection is to include both the current and thefollowing two fiscal years. Save your selection as a variant with the variantname Gr## and description Variant Gr##.

Execute the report. Adapt the report options in such a way that further functionsare available via expert mode. Stay in session 2 in this cost element report forthe following exercises.

a) To create a new session, choose Create a New Session. In session2, call up the cost element report, for example, by choosing SAPMenu → Accounting → Project System → Information System→ Financials → Costs → Plan-Based → By Cost Elements →Actual/Commitment/Total/Plan in CO Area Currency. Enter the followingdata in the selection screen:

Field Name ValuesProject E-99##

Plan Version 0

To Fiscal Year Current year + 2 years


To select project T-200##, choose Multiple Selection on the far rightin the Project row.

In the dialog box containing the list of single values, enter projectT-200## and confirm your selection by choosing Copy.

Before you execute the report, create a variant for your selection bychoosing Save as Variant... Now enter the following data:



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Field Name ValuesVariant Name Gr##

Description Variant Gr##

To save the variant, choose Save.

b) To start the report, choose Execute.

Hint: In the Variation area on the left, you can choose the objectwhose costs you want to evaluate on the right. The report mayalready display commitment costs that arose as a result of thepurchase requisition for activity 1400 (Engineering of RotatingBlades).

To adapt report options, choose Options/Office Integration. In thedialog box, select the Expert Mode indicator under General Settings andconfirm your settings by choosing Enter.

In expert mode, you can refresh the selected data in the following exercisesby choosing Report→ Refresh. To do so, leave the report open in session 2.

Task 2: Actual Dates for WBS Elements � Project E-99##Once you have released investment project E-99##, enter actual start and actual enddates in the project planning board for various WBS elements in this project. In theproject planning board, compare the actual dates with the planned dates.

1. Switch to session 1 to continue processing the data. In this session, changeproject E-99## in the project planning board. First, set the status of all theobjects in this project to Release.

To enter actual dates on the graph in the diagram area of the project planningboard, display the set of actual dates. Use your mouse to create time bars forthe actual dates of all the WBS elements at level three and for WBS elementE-99##-3 Assembly.

Determine the actual dates of the higher-level WBS elements too. To do so, usethe Extrapolate Dates function. Why has only an actual start date been set forthe level 1 WBS element E-99## Elevator Gr##?



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Save your changes.

Hint: In the following exercise steps, actual project data is updated.For the purpose of the exercises, we will presume that we are alreadywell into the future.

a) To change project E-99## in the project planning board, choose SAPMenu→ Accounting→ Project System→ Project→ Project PlanningBoard→ Change Project and choose project E-99## Elevator Gr##in the worklist.

Hint: In the diagram area of the project planning board, only theplanned basic project dates are currently displayed. According tothe schedule, the project will last for another six months or so.

To release all objects, choose Select All and then Edit→ Status→Release.

b) To ensure that actual dates are also displayed and can be entered from nowon in the diagram area, choose Set of Dates/View. In the dialog box, alsoselect the Actual Dates indicator and confirm your entry with Enter.

To enter actual dates for WBS element E-99##-1-1 Electrical Engineeringat level 3, position your cursor in the diagram area just below the basic datebar for this WBS element. Keeping the left-hand mouse button down, draga time bar from the actual start date to the actual end date. Set the actualstart and actual end dates so that they are later than the planned dates. Tohelp you, the relevant date is always displayed under the diagram areaaccording to the position of the cursor. In the dialog box, choose ActualDates as the set of dates.

A time bar for the actual dates is now displayed under the time bar for thebasic dates of the WBS element so that you can compare the dates witheach other.

Following the same procedure as before, enter actual dates for thefollowing WBS elements:

E-99##-1-2 Mechanical EngineeringE-99##-2-1 Procurement MotorE-99##-2-2 Procurement CabinE-99##-2-3 Procurement Equipment



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E-99##-3 Assembly

c) To determine the actual dates of the higher-level WBS elements, chooseDeselect All and then Edit→ Reconcile Dates→ Extrapolate Dates. In thedialog box, choose Actual Dates as the set of dates.

Only an actual start date is displayed for the level 1 WBS element E-99##Elevator Gr## because not all of the lower-level WBS elements have beenassigned an actual end date. You have not yet entered any actual dates forWBS element E-99##-4 Acceptance.

Save your changes. Confirm that you want to save the user-specificdata with Yes.

Task 3: Confirming Activities � Project T-200##Once you have released project T-200##, enter confirmations for the project activitiesin the project planning board. In the cost element report, you analyze the actual costsincurred by the confirmations for the activities.

Optional: Use the CATS to enter time data for project T-200##. Transferring this datato Project System generates confirmations for activities.

1. Open project T-200## in the project planning board (session 1) and select thestatus Release for all the objects.

In the project planning board, enter final confirmations for activities 1000Engineering of Drawing/Calculation/Design and 1100 Engineering of RunningGear. In the confirmations, enter actual start and actual end dates that are laterthan the earliest planned dates for the activities. In the confirmations, use actuallabor values that are slightly different to the planned values.



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If necessary, display the actual dates in the project planning board to comparethe confirmed dates with the planned dates. Save the changes and return to theSAP menu.

a) You are in the initial screen for the project planning board (session 1).To open project T-200##, choose the project T-200## Turbine Gr##in the worklist.

To release all objects in the project planning board, choose Select Alland then Edit→ Status→ Release.

b) Holding down the Ctrl key, select activities 1000 Engineering ofDrawing/Calculation/Design and 1100 Engineering of Running Gear in thetable area of the project planning board. To enter confirmations, chooseConfirm Activity.

In the detail screen of the confirmation for activity 1000, enter thefollowing data:

Field ValuesActual Start Earliest scheduled

start date

Actual Finish 7 days later than theearliest finish date

Actual Work More than the plannedwork


To call up the confirmation for activity 1100, choose Next Activity. Inthe detail screen for the confirmation, enter data in the same way as beforeand then choose Back.

If the confirmed dates are not shown in the diagram area, choose Set ofDates/View. In the dialog box, also select the Actual Dates indicator andconfirm your entry with Enter.

To save your changes, choose Save. To return to the SAP menu, chooseBack.



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2. Optional: Use CATS classic in the Project System menu to enter time data.In the initial screen, enter 1301 as the data entry profile and the personnelnumber 1920+## (for exercise group 01: 1921, for ## = 02: personnel number1922, and so on).

Hint: During resource planning, you assigned the person with thepersonnel number 1920+## to activity 1200 Engineering of Case inproject T-200## and distributed work to this employee. This assignmentis displayed along with the planned data in the Worklist in the CATSentry screen.

Navigate in the data entry period until the hours planned in workforce planningare displayed in theWorklist in individual periods. Copy the account assignmentdata in the worklist to the data entry section and enter time data for certain days.When you are doing this, it is assumed that the relevant period in the future hasalready been reached and that the work for activity 1200 has been carried out.Save your time data and return to the SAP menu.

To ensure that the time data you have entered is available in other applications,you have to transfer it to the appropriate target applications. To do so, carry outa cross-component transfer. For the selection criteria, enter personnel number1920+## and Project System as the target application. Before executing thisprocess, ensure that the Test Run indicator is not selected. Then return to theSAP menu.

a) In the SAP Project System menu, choose Project System→ Progress→Confirmation→ Time Sheet→ CATS Classic→ Record Working Times. Inthe initial screen, enter the following data (1920+## is for exercise group01 for 1921, for ## = 02 for personnel number 1922, and so on):

Field Name ValuesData Entry Profile 1301

Key Date 1st of next month

Personnel Number 1920+##

To confirm your entries, choose Enter and then choose Enter Times.

The system now displays the screen for entering data in the time sheet. Inthe Worklist, you can see activity 1200 Engineering of Case of projectT-200## with a total of 60 hours, which you distributed to your group�s



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personnel number when distributing the work. If no distributed hours aredisplayed in the data entry period fields, you may have to change the dataentry period. To do so, choose Next Screen.

Hint: When you distributed work among the employees, 60 hourswere distributed in the �Weeks� period pattern. In the CATS, theseplanned hours are set for the first day of the week. You can usethe data entry profile to define whether the planned hours arealso copied to the data entry section or whether just the workingdays can be entered.

To copy the data from the worklist to the data entry section, select the rowwith activity 1200 in the worklist and choose Copy Row. Then enterhours for different days in the row for activity 1200. The required hoursfrom Personnel Time Management (row ) should not be exceeded. Savethe data you have just entered by choosing Save and exit the CATS bychoosing Back.

Hint: Before transferring data to the target application, younormally have to release the time data you have entered and haveit authorized by a superior. In data entry profile 1301, however,the system has been set in such a way that:

1. The data is released automatically when you save2. Authorization is not required

b) To transfer the time data to the Project System, choose Project System→Progress→ Confirmation→ Time Sheet→ Transfer→ All Components.Under Selection, enter 1920+## (1920+## is for exercise group 01again for 1921, for ## = 02 for personnel number 1922, and so on) in thePersonnel Number field. Activate the Project System indicator to select theTarget Components and deactivate the Test Run indicator under ControlParameters. To start the transfer, choose Execute.

Exit the transfer log and return to the SAP menu by choosing Back.

3. Use the cost element report in session 2 to analyze the actual costs that wereupdated to the activities in project T-200## as a result of the confirmations. Todo so, refresh the report data.



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From the report, call up the screen displaying the line items for the actualcosts. Adjust the layout of the line item report in such a way that the documentnumber and user are also displayed in the appropriate columns. Call up a sourcedocument for one of the line items. Then return to the cost element report.

a) Switch to session 2. In this session, the cost element reportActual/Commitment/Total/Plan in CO Area Currency containing the costdata for projects T-200## and E-99## is already open. To update the data,choose Report→ Refresh (the Expert Mode indicator must be activatedin the options).

Hint: When you released project T-200##, material purchaserequisitions were generated automatically. The correspondingcommitment costs are displayed in the report. Actual costs forthe project are also displayed because of the confirmations youentered earlier.

b) To call up the line item report for the actual costs, select the total value inthe Actual column and then choose Call Up Report. To add additionalcolumns, choose Change Layout... in the line item report. In the dialogbox, go to the Column Set on the Columns tab page, hold down the Ctrlkey and select Document Number and User. Copy the fields to Columnsby choosing Show Selected Fields and confirm your selection withEnter.

Hint: A separate document has been written for each confirmation.By choosing Environment→ Accounting Documents, you can notonly call up the source document for an actual line item but alsothe associated accounting documents (cost accounting documents,profit-center documents, financial accounting documents, andso on).

To display a source document, select a line item and choose Document.The system displays detailed confirmation data.

To exit the document and the line item report, choose Back andBack. Choose Yes in the dialog box to exit the line item list. Stay in session2 in the cost element report.


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Lesson Summary

You should now be able to:� Enter actual dates for WBS elements� Explain the function of confirmations and name different confirmation methods� Confirm time data by means of CATS

Related Information

� For more information on CATS, see the SAP Service Marketplace atservice.sap.com/cats.


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PLM200 Lesson: Assigning Documents, Procurement Processes, and Claim Management

Lesson: Assigning Documents, Procurement Processes,and Claim Management

Lesson OverviewThis lesson looks at a number of business transactions and processes that are typicallycarried out during the project execution phase and that result in commitments andcosts being updated to projects. Claim Management in the SAP Project System (SAPPS) enables you to document variances from the project plan, as well as trigger andmonitor follow-up actions.


� Use Execution Services for posting documents� Demonstrate the various ProMan functions� Explain the purchasing process� Explain the role of Claims

Business ExampleIn the project execution phase, commitments and actual costs are updated to yourprojects by assigning various documents. You will use Execution Services topost internal activity allocations and purchase requisitions, and get to know theprocurement process carried out by Purchasing in your company. You will createclaims to document unplanned variances from the original project plan, plan variancecosts and, if necessary, trigger the appropriate measures.

Assigning DocumentsThe diagram �CO Assignment of Documents� shows business transactions thatestablish a connection to WBS elements or activities via an assignment. By assigningthe appropriate documents, the resulting commitment or actual costs are posteddirectly to a WBS element or the network/activity.

During the project planning phase, these costs were planned accordingly. In this way,you can plan the costs for purchase requisitions, purchase orders, and goods receipts atnetwork or activity level using externally-processed activities, service activities, ormaterial components that are procured directly, withdraw stock from the warehouseusing the appropriate stock items, post invoices using cost activities and costs arisingas a result of confirmations using internally-processed activities.


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Actual costs and revenues arising from purchase requisitions, purchase orders, goodsreceipts, activity allocations, or invoices for WBS elements match the values ofthe primary costs, activity input, or revenue planning data for the work breakdownstructure.

Figure 56: CO Assignment of Documents

You can use Execution Services to enter commitment and actual costs for items thatyou planned using Easy Cost Planning. The following postings are possible:

� Internal activity allocation� Direct process allocation (for processes)� Reservations (for material items)� Goods issues (for material items)� Purchase requisition (for material items, external activity items, service items,

variable items)� Purchase order (for material items, external activity items, service items,

variable items)


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Figure 57: Execution Services

Procurement ProcessesPurchase requisitions are generated by the network for externally-processed activities,service activities, and materials that are procured externally. These purchaserequisitions are passed on to the Purchasing department for further processing. Thepurchasing process involves issuing a request for quotation to vendors (if applicable),entering these quotations in the system, selecting vendors, converting the purchaserequisitions to purchase orders, and monitoring the orders until the goods and invoicesare received.

A service activity triggers a similar purchasing process, but can also contain ahierarchy of planned services to be purchased, as well as value limits for unplannedservices. The �goods receipt� for services involves two steps: entering servicesperformed, and accepting them.

The purchase requisition results in purchase requisition commitments for the accountassignment object (activity or WBS element). When the purchase requisition isconverted to a purchase order, this results in purchase order commitments for theaccount assignment object (this is a different value type than purchase requisitioncommitments). Depending on the account assignment category of the purchase order,actual costs are posted when the goods or invoice is received (valuated, non-valuatedgoods receipt). They are passed on to the network activity or WBS element dependingon the account assignment. Instead of having the network generate purchaserequisitions automatically, you can create purchase requisitions and purchase ordersmanually, and assign them to WBS elements.


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Figure 58: The Purchasing Process

ProMan is a tool that helps you carry out project-oriented procurement. ProManenables you to access data in the SAP PS, purchasing, production, requirementsplanning, and inventory management. Procurement-related information from thesecomponents is structured in ProMan and displayed in summarized form. Individualsteps in the procurement process, such as creating reservations, purchase requisitions,and purchase orders or entering deliveries from projects, goods issues, or balancesheet transfers can be carried out directly in ProMan. The status and progress ofinternal and external procurement processes can be monitored and controlled within asingle transaction.

Hint: To ensure that components or documents are displayed in ProMan, anassignment or account assignment for an object in the project must have beenmade (WBS element or network activity, for example). The link can alsobe made manually, such as the manual assignment of a production order ormanual account assignment of a purchase requisition. Requirements that arenot related to the project and that relate instead to the make-to-stock inventorycannot be evaluated in ProMan.


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Figure 59: Project-Oriented Procurement - ProMan

Claim ManagementWhile your project is being executed, you may experience delivery problems, pricevariations, unforeseeable bottlenecks, and so on, that result in variances from theproject plan. If this occurs, you must document these variances and clarify whichcontractual partners are responsible. Claim Management ensures that a claim arisingfrom variances is prepared and lodged against the contractual partners at the right timeor deflected if it is in the other direction. You can use the Claim notification categoryin Claim Management in Project System to document any variances from your projectplan, identify the party responsible, and initiate follow-up activities. Variances oftenincur increased costs. You can enter the costs that may have occurred either whencreating the claim or at a later stage (for example, when more detailed informationabout the claim becomes available). You can create claims either in the SAP system oron the Internet. The Claim Overview and Claim Hierarchy in SAP PS provide tworeports that you can use to evaluate claims.


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Figure 60: Claims

You can integrate the data for estimated variance costs from claims in cost planningfor the relevant projects. The system automatically creates an internal order for thispurpose as a cost collector when you save the claim and then transfers the estimatedcosts to the cost collector. The internal order is automatically assigned to the sameWBS element as the claim and can be evaluated in the appropriate SAP PS reports.


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Figure 61: Cost Integration of Claims


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Exercise 12: Execution Services,Procurement Process, and ClaimManagement

Exercise ObjectivesAfter completing this exercise, you will be able to:� Use Execution Services for posting documents� Analyze commitments in a cost element report� Optional: Analyze project-related procurement processes in ProMan� Optional: Create claims

Business ExampleFor investment project E-99##, you will use the Execution Services function to postdifferent documents for the costs planned with Easy Cost Planning. When you assignthe documents to the WBS elements in the project, commitment and actual costs arecharged to the project. In the information system of Project System, you can monitorthe costs incurred.

To process customer project T-200##, you procure the required external services andmaterial components via Purchasing. An MRP planning run is used to determinesecondary requirements for the in-house production of materials. You track the statusof the procurement process and the changes to the costs in Project System.

If any variances occur from the original project plan, you can use claim managementto document and plan the costs incurred by the variances and, if necessary, plan andcontrol the necessary measures.


Task 1: Execution Services � Project E-99##Using Execution Services, post different documents for the costs that you haveplanned with Easy Cost Planning for project E-99##. Analyze the commitment andactual costs for project E-99## in the cost element report.

1. Open project E-99##, which has been released, in Project Builder in session 1and expand the entire structure. Call up Easy Cost Planning and display the itemview and Execution Services.



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First post an internal activity allocation for the two planned internal activities forWBS element E-99##-1 Engineering. Use the planned data when posting thedocument. Then display a list of documents that have been posted.

For WBS element E-99##-2 Procurement, use the appropriate Execution Serviceto create a purchase requisition for the planned material components. Thedelivery date is to be about 14 days from now. Update the list of documents thathave been posted to display the purchase requisition.

Return to the Project Builder and exit the function for processing your project.

2. Use the cost element report Actual/Commitment/Total/Plan in CO Area Currencyin session 2 to analyze the commitment costs for project E-99## incurred bythe purchase requisition for WBS element E-99##-2 Procurement. To do so,refresh the report data.

From the report, call up the screen displaying the line items for the commitmentcosts. Call up the source document for the line item. Then return to the costelement report.

Task 2: Optional: ProMan � Project T-200##Optional: Use ProMan to gain an overview of the current status of procurement formaterial components in project T-200##.

1. Switch to session 1. In this session, open ProMan (Project-OrientedProcurement) in the Project System menu and select project T-200## beforeexecuting it. Expand the entire project structure in ProMan. Use ProMan toanswer the following questions:

Which orders/documents exist for level 1 WBS element T-200## Turbine?

Take a look at the details for material component T-20600, which is assignedto activity 4000 Production of Running Gear, Bearing, Valves. What is therequirements quantity that you have planned for material component T-20600?

Return to the SAP menu.



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Task 3: Purchasing Process (to be carried out byinstructor)In this task, external activities and material components required for customer projectT-200## are purchased from vendors. The instructor will adopt the roles of MRP andPurchasing and will enter the appropriate goods receipts for the purchase order.

Caution: This task is carried out by the instructor and not the courseparticipants.

1. Instructor only: Material T-20600 (Bearing (Complete) is manufactured inhouse. In session 1, carry out an online MRP planning run for all materials inplant 1300 to determine secondary requirements and, if necessary, planningprocurement elements for production. For the planning run, enter plant 1300,processing key NETCH as the parameters and 1 (Purchase Requisitions) as thekey for creating purchase requisitions. Then return to the SAP menu.

2. Instructor only: Use the report Purchase Requisitions for Project toautomatically assign vendor 1000 to the purchase requisitions for the customerprojects to which no vendor has been assigned. Save the changes and returnto the SAP menu.

Hint: To make matters simpler, we will assume that all goods to beprocured externally will be procured from one vendor. You will not needto issue a request for quotation either.

3. Instructor only: In Purchasing, create a purchase order for the vendor usingVia Requisition Assignment List. When doing so, select all the open purchaserequisitions for vendor 1000 and purchasing organization 1000 and copy themto a purchase order (order type NB). Save this purchase order, note the purchaseorder number, and return to the SAP menu.

Purchase order number: ____________________

4. Instructor only: To conclude, enter the goods receipt for the purchase order inInventory Management. To do so, alter the default values for goods receipts insuch a way that all the items, storage location 0001, plant 1300, and the OKindicator are defaulted. Copy the data from the purchase order you created in theprevious step and post the goods receipt. Then return to the SAP menu.



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Task 4: Optional: Claim Management � Project T-200##Optional: You create a claim by customer or vendor for project T-200## to documentdefects regarding the material components supplied and estimate the costs incurredby the variance. Take a look at the changes to the planned project costs using thecost element report.

1. Parts of the steam pipe supplied by the vendor for the turbine in customer projectT-200## are defective. In session 1 in the Project system menu, create a Claimby Customer or Vendor with the partner category Vendor.

Specify Defective Material T-20810 as the description and enterNew Procurement Required as a long text describing the consequence.Assign the claim to your level 1 WBS element T-200## and specify 1000as the vendor number.

Plan project costs incurred as a result of the variance. To do so, create a costestimate in the claim with costing variant PNOT. Enter a costing item with itemcategory M (Material), resource T-20810 (Steam Pipe for Turbine) from plant1300, and quantity 10 meters. Copy the costing data as Estimated Costs.

Approve and save the claim. In the background, the system automatically createsa CO order as a cost collector. Finally, return to the SAP menu.

2. Use cost element report Actual/Commitment/Total/Plan in CO Area Currencyin session 2 to evaluate the new planned costs for project T-200##. To do so,refresh the report data and select the CO order, which was created as a costcollector via the claim, in the navigation panel.


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Solution 12: Execution Services,Procurement Process, and ClaimManagementTask 1: Execution Services � Project E-99##Using Execution Services, post different documents for the costs that you haveplanned with Easy Cost Planning for project E-99##. Analyze the commitment andactual costs for project E-99## in the cost element report.

1. Open project E-99##, which has been released, in Project Builder in session 1and expand the entire structure. Call up Easy Cost Planning and display the itemview and Execution Services.

First post an internal activity allocation for the two planned internal activities forWBS element E-99##-1 Engineering. Use the planned data when posting thedocument. Then display a list of documents that have been posted.

For WBS element E-99##-2 Procurement, use the appropriate Execution Serviceto create a purchase requisition for the planned material components. Thedelivery date is to be about 14 days from now. Update the list of documents thathave been posted to display the purchase requisition.

Return to the Project Builder and exit the function for processing your project.

a) Open project E-99## in the Project Builder in session 1. To do so, chooseSAP Menu→ Accounting→ Project System→ Project→ Project Builderand choose E-99## Elevator Gr## in the worklist. To display all of theWBS elements, choose Expand All. Your project should be assignedthe status REL.

To call up Easy Cost Planning, choose Easy Cost Planning. To displaythe item view and Execution Services, choose Show/Hide Item Viewand then Show Execution Services.

b) In the Costing Structure, select WBS element E-99##-1 (Engineering). Topost an internal activity allocation for this WBS element, choose InternalActivity Allocation from the list of Execution Services.

Hint: The overview of costing items now only shows the items foritem category E along with the planned data. You can change thisdata before making any posting (for example, different quantityor activity type).



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To post an internal activity allocation for the planned internal activities,choose Select All and then Post in the overview of costing items.To display a list of posted documents in the upper section of the screen,choose List On/Off (top right).

c) To post a purchase requisition for WBS element Procurement, select WBSelement E-99##-2 (Procurement) in the costing structure. Then choose theExecution Service Purchase Requisition.

Hint: The overview of costing items now only displays the itemswith item categories M/F/N/V/L along with the planned data. Inour case, these are different material components.

Purchasing data still has to be maintained before material componentscan be procured externally. Define a delivery date for all the items inthe overview. To do so, enter Today + 14 Days for the date in theDelivery Date field. Select all the items with Select All, position thecursor on the field with the date you have just entered (not on the columnheader) and then choose Fill Column. Confirm your entries withEnter. All the items now have a delivery date and are selected for transferto the purchase requisition. To post the purchase requisition, choosePost. To display the document in the upper section, choose Refresh.

Hint: If the system outputs a warning or error message (due tomissing data, for example), an error log is written. You can call upthis log by choosing Log.

To return to the Project Builder, choose Back. Save your project andexit the Project Builder by choosing Save and Exit.

2. Use the cost element report Actual/Commitment/Total/Plan in CO Area Currencyin session 2 to analyze the commitment costs for project E-99## incurred bythe purchase requisition for WBS element E-99##-2 Procurement. To do so,refresh the report data.



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From the report, call up the screen displaying the line items for the commitmentcosts. Call up the source document for the line item. Then return to the costelement report.

a) Switch to session 2. In this session, the cost element reportActual/Commitment/Total/Plan in CO Area Currency containing the costdata for projects T-200## and E-99## is already open. To update the datachoose Report→ Refresh (the Expert Mode indicator must be set in thereport options).

To evaluate just the commitment costs for project E-99##, choose theobject PRJ E-99## Elevator Gr## in the navigation panel. The reportnow displays the aggregated costs for investment project E-99##.

b) To call up the line item report for the commitment costs, select the totalvalue in the Commitments column and then choose Call Up Report.

To display the source document, select a row in the list of line items andchoose Document.

Hint: The display shows the purchase requisition created usingExecution Services. The items in the purchase requisition areassigned to WBS element E-99##-2 Procurement.

Exit the document and line item report with Back. Choose Yes in thedialog box to exit the line item list. Stay in session 2 in the cost elementreport.

Task 2: Optional: ProMan � Project T-200##Optional: Use ProMan to gain an overview of the current status of procurement formaterial components in project T-200##.

1. Switch to session 1. In this session, open ProMan (Project-OrientedProcurement) in the Project System menu and select project T-200## beforeexecuting it. Expand the entire project structure in ProMan. Use ProMan toanswer the following questions:

Which orders/documents exist for level 1 WBS element T-200## Turbine?

Take a look at the details for material component T-20600, which is assignedto activity 4000 Production of Running Gear, Bearing, Valves. What is therequirements quantity that you have planned for material component T-20600?



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Return to the SAP menu.

a) To open ProMan, choose the following menu path in Project System insession 1: Project System→ Material→ Execution→ Project-OrientedProcurement (ProMan). In the selection screen, enter T-200## in theProject Definition field and then choose Execute.

Hint: In the main screen of ProMan, the project hierarchy isdisplayed on the left and the different overviews on the right(Components, Quantities, Dates, and so on) as tab pages. Variousdocuments (purchase requisitions or material documents) andorders (planned or production orders) can be displayed in theoverviews. By choosing the appropriate icons or choosing eitherthe main menu or a context menu, you can display further data orexecute other functions (creating purchase requisitions or purchaseorders, posting different goods movements).

To expand the entire project hierarchy, select the project definitionTurbine Gr## T-200## in the project structure and choose ExpandSubtree.

b) Take a look at the documents that have been assigned to the level 1 WBSelement T-200##. To do so, select the row Turbine T-200## in theproject structure and choose Goto→ Views→ Objects/Documents. In thesub-screen on the right, the corresponding overview is now displayed.Various purchase requisitions for material components, which are to belisted in the project stock (stock for WBS element T-200##), are assignedto the WBS element. The material components were assigned to the projectactivities using the BOM transfer function, and the purchase requisitionswere generated automatically when the activities were released.

c) To analyze the details for material component T-20600, choose the rowBearing (Complete) 0060 T-20600 in the project structure. The materialcomponent is assigned to activity 4000 Production of Running Gear,Bearing, Valves (if necessary, use Search). Then choose Goto→ Views→ Components. In the sub-screen on the right, the corresponding overviewis now displayed with information about the requirements quantity andrequirements date, for example. A requirements quantity of 2 was plannedfor this material during BOM transfer. A corresponding reservation wascreated automatically when the project was released.

To return to the SAP menu, choose Back (twice).



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Task 3: Purchasing Process (to be carried out byinstructor)In this task, external activities and material components required for customer projectT-200## are purchased from vendors. The instructor will adopt the roles of MRP andPurchasing and will enter the appropriate goods receipts for the purchase order.

Caution: This task is carried out by the instructor and not the courseparticipants.

1. Instructor only: Material T-20600 (Bearing (Complete) is manufactured inhouse. In session 1, carry out an online MRP planning run for all materials inplant 1300 to determine secondary requirements and, if necessary, planningprocurement elements for production. For the planning run, enter plant 1300,processing key NETCH as the parameters and 1 (Purchase Requisitions) as thekey for creating purchase requisitions. Then return to the SAP menu.

a) In session 1, choose SAP Menu→ Logistics→ Production→ MRP→Planning→ Total Planning→ Online. Enter the following data on theinitial screen:

Field Name ValuesPlant 1300

Processing Key NETCH

Create Purchase Requisition 1


To start the planning run, confirm your entries, the warning messages, andthe dialog box with Enter.

To return to the SAP menu, choose Back (twice).



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2. Instructor only: Use the report Purchase Requisitions for Project toautomatically assign vendor 1000 to the purchase requisitions for the customerprojects to which no vendor has been assigned. Save the changes and returnto the SAP menu.

Hint: To make matters simpler, we will assume that all goods to beprocured externally will be procured from one vendor. You will not needto issue a request for quotation either.

a) In session 1, choose, for example, SAP Menu→ Logistics→ ProjectSystem→ Information System→ Material→ Purchase Requisitions→For Project. In the selection screen, enter projects T-20001 to T-20020and deselect the Assigned Purchase Requisitions indicator. To display thelist of purchase requisitions, choose Execute.

Specify that you want the purchase requisitions to be assigned automaticallyto vendors using existing purchasing info records. To do so, choose Edit→Select→ Select All and then Assign Automatically.

Hint: If more than one purchasing info record exists, the systemdisplays a list from which you can select one. For purchaserequisitions for which no source of supply could be determined,you can still make an assignment by choosing Assign Manually.

To save the changes and to return to the SAP menu, choose ChangeRequisitions, confirm the messages issued by the system with Enter,and exit the report with Back.

3. Instructor only: In Purchasing, create a purchase order for the vendor usingVia Requisition Assignment List. When doing so, select all the open purchaserequisitions for vendor 1000 and purchasing organization 1000 and copy themto a purchase order (order type NB). Save this purchase order, note the purchaseorder number, and return to the SAP menu.



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Purchase order number: ____________________

a) Choose SAP Menu→ Logistics→ Materials Management→ Purchasing→ Purchase Order→ Create→ Via Requisition Assignment List. Enter thefollowing data on the initial screen:

Field Name ValuesPurchasing Organization 1000

Vendor 1000


Then choose Execute.

In the assignment overview, select the row Without Outline Agreementand choose Process Assignment. Confirm the proposed data for creatingthe purchase order with Enter.

To close the explanatory window in the center part of the screen, chooseClose.

Move the line between the document overview and purchase order datato the right so that you can see the list of open purchase requisitions onthe left in its entirety. To copy the purchase requisition data to the newpurchase order, select the row Open Requisitions in the documentoverview and choose Adopt.

To save the purchase order, choose Save. Make a note of the numberof the standard purchase order, which is displayed in the status bar. Thenchoose Back twice to return to the SAP menu.



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4. Instructor only: To conclude, enter the goods receipt for the purchase order inInventory Management. To do so, alter the default values for goods receipts insuch a way that all the items, storage location 0001, plant 1300, and the OKindicator are defaulted. Copy the data from the purchase order you created in theprevious step and post the goods receipt. Then return to the SAP menu.

a) To enter the goods receipt, choose SAP Menu→ Logistics→ MaterialsManagement→ Inventory Management→ Goods Movement→ GoodsReceipt→ For Purchase Order→ GR for Purchase Order (MIGO).

To check the default values, and, if necessary, to adapt them, chooseSettings→ Default Values. Enter the following data under General DefaultValues:

Field Name ValuesStorage Location 0001

In Plant 1300

Propose the OK Function in Future x

Propose All Items x

Choose Adopt and confirm the dialog box to confirm that you want tochange the default values by choosing Enter.

Enter the purchase order number in the field to the right of Goods ReceiptPurchase Order and choose Execute (Enter) to copy the data.

Then choose Post to save the document. To return to the SAP menu,choose Back.

Task 4: Optional: Claim Management � Project T-200##Optional: You create a claim by customer or vendor for project T-200## to documentdefects regarding the material components supplied and estimate the costs incurredby the variance. Take a look at the changes to the planned project costs using thecost element report.

1. Parts of the steam pipe supplied by the vendor for the turbine in customer projectT-200## are defective. In session 1 in the Project system menu, create a Claimby Customer or Vendor with the partner category Vendor.



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Specify Defective Material T-20810 as the description and enterNew Procurement Required as a long text describing the consequence.Assign the claim to your level 1 WBS element T-200## and specify 1000as the vendor number.

Plan project costs incurred as a result of the variance. To do so, create a costestimate in the claim with costing variant PNOT. Enter a costing item with itemcategory M (Material), resource T-20810 (Steam Pipe for Turbine) from plant1300, and quantity 10 meters. Copy the costing data as Estimated Costs.

Approve and save the claim. In the background, the system automatically createsa CO order as a cost collector. Finally, return to the SAP menu.

a) If necessary, switch to session 1. In the SAP Project System menu, chooseProject System→ Notifications→ Claim→ Create. Enter the followingdata on the initial screen:

Field Name ValuesNotification Type Internal claimPartner Type Vendor


On the Subject tab page for the claim, enter Defective MaterialT-20810 in the Description field. To enter a long text for consequences,choose Edit Text→ Long Text for Consequences. In the dialog box,enter, for example, New Procurement Required as the text, andconfirm your entry with Continue (Enter).

Call up the Assignment tab page. Enter the level 1 WBS element T-200##as the reference object in the WBS Element field and 1000 in the Vendorfield. Confirm your entry and the next dialog box with Enter.

b) To plan costs incurred as a result of variances, call up the Costs tab page.Confirm the costing variant PNOT in the dialog box with Enter. In theitem overview for the cost estimate, enter the following data:

Item Category Quantity Resource Plant/ActivityType

M 10 T-20810 1300



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Confirm your entries with Enter. To copy the item costs as estimatedcosts, choose Confirm.

To ensure that the system automatically generates a cost collector whenyou save the data, you have to approve the claim. To do so, chooseGive Approval.

Hint: On the Tasks and Activities tab pages, you can documentvarious follow-up activities and, for the tasks, use the status forcontrol purposes. On the DMS tab page, you can assign documentsfrom document management. From the activity box, you can callup different functions directly that can be defined automatically bythe system as tasks or activities.

To save your claim, choose Save. The number of the cost collector thatwas created when you saved the data is now displayed in the status bar. Toreturn to the SAP menu, choose Back.

2. Use cost element report Actual/Commitment/Total/Plan in CO Area Currencyin session 2 to evaluate the new planned costs for project T-200##. To do so,refresh the report data and select the CO order, which was created as a costcollector via the claim, in the navigation panel.

a) Switch to session 2. In this session, the cost element reportActual/Commitment/Total/Plan in CO Area Currency containing the costdata for projects T-200## and E-99## is already open. To update the data,choose Report→ Refresh.

To evaluate just the planned costs for the CO order, select the object ORDon the left in the navigation panel with the description Notif.: DefectiveMaterial T-20810 that is assigned to WBS element T-200##. The estimatedcosts of the claim are displayed as planned order costs. Stay in session 2in the cost element report.


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Lesson Summary

You should now be able to:� Use Execution Services for posting documents� Demonstrate the various ProMan functions� Explain the purchasing process� Explain the role of Claims


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Lesson: Milestone Billing and PS Cash Management

Lesson OverviewThis lesson shows you how to carry out milestone billing to control billing processesfor sales orders using project milestones. This lesson also provides an overview of PSCash Management, which you can use to monitor payment flows in projects.


� Describe the process and benefits of milestone billing� Explain the purpose of PS Cash Management

Business ExampleOnce the most important assembly components have been manufactured for theturbine system, invoices are to be created automatically and the initial actual revenuesupdated to project T-200##. To do so, use milestone billing.

Milestone BillingThe starting point for milestone billing is a sales order item with a billing planwhose dates stem from milestones of the assigned project (see �Cost and RevenuePlanning�). If you enter actual dates in the billing milestones (by confirming theassigned activity, for example), the billing lock imposed on the corresponding date inthe billing plan is lifted.


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PLM200 Lesson: Milestone Billing and PS Cash Management

Figure 62: Milestone Billing (1)

The unlocked date of the sales order item is then billed during the next billing run.Like the sales order item, the invoice document is assigned to a WBS element. Thismeans that the actual revenues are posted in the project. The system flags the date inthe billing plan as Fully Processed (billing status C).


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Figure 63: Milestone Billing (2)

PS Cash ManagementDuring the course of the project, project costs that affect receipts and expenditures(incoming and outgoing payments) are incurred as a result of purchasing or salesdocuments. To identify early on when payments are due during the project, you haveto plan and monitor payments. The aim of PS Cash Management is to optimizecash flow to maximize project profits and reduce project costs. The �PS CashManagement� diagram shows the sort of questions that those responsible for PS CashManagement should ask in order to monitor payment flows effectively.


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Figure 64: PS Cash Management


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Exercise 13: Milestone Billing

Exercise ObjectivesAfter completing this exercise, you will be able to:� Carry out milestone billing

Business ExampleWhen further activities in customer project T-200## are confirmed, billing milestonesassigned to the activities are activated. This unlocks the appropriate dates in the salesorder billing plan for your project. In SD, a billing program creates customer invoicesfor the unblocked dates in the sales order. In the project, the invoices are displayed asrevenues for the assigned billing elements.


Task: Milestone Billing � Project T-200##You use the structure information system to create a confirmation for activity 4000of project T-200##. In SD, you then create a billing document for the sales orderassigned to your project. Analyze the actual revenues in your project in the structureinformation system and cost element report.

1. Two sessions are currently open. Use session 1 for posting your dataand session 2 for analyses with the plan-based cost element reportActual/Commitment/Total/Plan in CO Area Currency. Open a new session(referred to as session 3 from now on). In session 3, open the Structure Overviewin the information system. Select the data for customer project T-200##.

In the structure overview, enter an individual confirmation for activity 4000Production of Running Gear, Bearing, Valves. Enter the earliest scheduledactivity dates for the confirmation. Save the confirmation and refresh thestructure overview. An actual finish date, which unblocks the appropriate datein the sales order billing plan, is displayed for the activity and assigned billingmilestone.

2. Switch to session 1 and create a billing document for the project sales order inthe SD menu (note the sales order number in the structure overview). Executeand then save the billing document. Then return to the SAP menu.



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3. Return to the structure overview in session 3 and refresh the report. For whichobject are the actual revenues displayed?

Call up further details for the actual revenues in project T-200## in the costelement report. To do so, call up session 2 and refresh the report.

Call up the source document for the actual revenues from the line item report.Then return to the cost element report.


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Solution 13: Milestone BillingTask: Milestone Billing � Project T-200##You use the structure information system to create a confirmation for activity 4000of project T-200##. In SD, you then create a billing document for the sales orderassigned to your project. Analyze the actual revenues in your project in the structureinformation system and cost element report.

1. Two sessions are currently open. Use session 1 for posting your dataand session 2 for analyses with the plan-based cost element reportActual/Commitment/Total/Plan in CO Area Currency. Open a new session(referred to as session 3 from now on). In session 3, open the Structure Overviewin the information system. Select the data for customer project T-200##.

In the structure overview, enter an individual confirmation for activity 4000Production of Running Gear, Bearing, Valves. Enter the earliest scheduledactivity dates for the confirmation. Save the confirmation and refresh thestructure overview. An actual finish date, which unblocks the appropriate datein the sales order billing plan, is displayed for the activity and assigned billingmilestone.

a) To create a new session, choose Create a New Session. In session 3, callup the structure overview by choosing SAP Menu→ Logistics→ ProjectSystem→ Information System→ Structures→ Structure Overview. In theselection screen, enter project T-200## in the Project field and chooseExecute.

Hint: The structure overview displays the various project elements.The planned and actual costs (that result from confirmationsand the purchase of services and materials) are aggregated anddisplayed for the level - 1 WBS element T-200##. When the salesorder is assigned, planned revenues for the WBS element are alsodisplayed.

The sales order and other sales documents (customer inquiry orcustomer quotation) or assigned orders (planned orders or COorders) are also displayed in the structure overview under the level -1 WBS element. You can display objects by double-clicking them.



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b) To enter an individual confirmation for activity 4000 Production of RunningGear, Bearing, Valves, choose Deselect All and then select activity 4000on the left of the structure overview. Then choose Extras/Environment→Confirm→ Individual Confirmation.

Enter the following data in the detail screen for the confirmation:

Field Name ValuesActual Start Same as earliest

scheduled start date

Actual Finish Same as earliestscheduled finish date


To save the confirmation and return to the structure overview, chooseSave and confirm the dialog box. Refresh the data in the structure

overview by choosing Refresh.

Hint: Actual dates are displayed for activity 4000 and the assignedmilestone. This unlocks the billing date in the billing plan of thesales order. A billing document can now be created in SD.

2. Switch to session 1 and create a billing document for the project sales order inthe SD menu (note the sales order number in the structure overview). Executeand then save the billing document. Then return to the SAP menu.

a) Switch to session 1. In this session, choose SAP Menu→ Logistics→Sales and Distribution→ Billing→ Billing Document→ Create.

In the list of documents to be processed, enter your sales order numberin the Document column.

Hint: The sales order number is displayed in the structure overviewfor project T-200## in session 3. As a result of the document type,your sales order is assigned to the number range from 000001to 199999. Any other sales documents, customer inquiries, andquotations that may be displayed use different number ranges.

To create a billing document, choose Execute. Save the billingdocument with Save. To return to the SAP menu, choose Back.



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3. Return to the structure overview in session 3 and refresh the report. For whichobject are the actual revenues displayed?

Call up further details for the actual revenues in project T-200## in the costelement report. To do so, call up session 2 and refresh the report.

Call up the source document for the actual revenues from the line item report.Then return to the cost element report.

a) Switch to session 3. To refresh the structure overview for project T-200##,choose Refresh. Because the sales order item has been assigned tobilling element T-200## in your project, the actual revenues for WBSelement T-200## are displayed in the Actual Revenues column.

b) Call up the cost element report in session 2. To evaluate all the costs andrevenues for project T-200##, select the object PRJ T-200## TurbineGr## in the navigation panel on the left. To refresh the report, chooseReport→ Refresh (the Expert Mode indicator must be set in the reportoptions). Actual project revenues are displayed for revenue element800000 Sales Revenues - Domestic.

c) To call up the source document for the actual revenues, select the field (notthe column) with the actual revenues and choose Call Up Report. Thenselect the document line in the line item report and choose Document. Thesystem now displays the invoice.

To return to the cost element report, choose Back twice and choose Yesto confirm that you want to exit the line item list.


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Lesson Summary

You should now be able to:� Describe the process and benefits of milestone billing� Explain the purpose of PS Cash Management


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PLM200 Unit Summary

Unit SummaryYou should now be able to:� Enter actual dates for WBS elements� Explain the function of confirmations and name different confirmation methods� Confirm time data by means of CATS� Use Execution Services for posting documents� Demonstrate the various ProMan functions� Explain the purchasing process� Explain the role of Claims� Describe the process and benefits of milestone billing� Explain the purpose of PS Cash Management


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Unit Summary PLM200


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Unit 7Period-End Closing

Unit OverviewPeriod-end closing involves various period-based business activities such as overheadapplication, results analysis, and settlement. These activities help you make surethat all the data that belongs to a period is determined and, where appropriate, madeavailable to Management Accounting. This unit provides you with a brief introductionto various processes performed as part of period-end closing for projects.


� Name various period-end closing procedures� Describe the scenarios for settling the two example projects

Unit ContentsLesson: Period-End Closing and Settlement.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .226

Exercise 14: Period-End Closing.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .231


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Unit 7: Period-End Closing PLM200

Lesson: Period-End Closing and Settlement

Lesson OverviewThis lesson provides you with an overview of the various procedures you can carryout as part of period-end closing for projects. Investment project E-99## and salesproject T-200## will be used to illustrate typical settlement scenarios. You will alsobe introduced to the Schedule Manager as a tool for carrying out period-end closingactivities.


� Name various period-end closing procedures� Describe the scenarios for settling the two example projects

Business ExampleAt the end of a period, you have to carry out various period-end closing activities foryour projects. First, you run a results analysis for your sales project T-200## afteryou have calculated the overhead costs, and then settle to a profitability segment. Yousettle investment project E-99## to an asset under construction (AUC) or to an assetafter the overheads have been applied.

Period-End Closing ActivitiesYou carry out period-based business transactions as part of period-end closing. Thisenables you to make sure that all the data that belongs to a period is determined and thatit is made available to Management Accounting. An overview of the most importantperiod-end closing procedures can be seen in the �Period-End Closing Procedures�diagram. They are dealt with in detail in the courses PLM230 (Project Controllingwith Networks) and PLM235 (Project Controlling with Work Breakdown Structures).


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PLM200 Lesson: Period-End Closing and Settlement

Figure 65: Period-End Closing Procedures

Overhead costing is used to allocate the overhead costs for supplying materials,machines, and labor by means of percentage or quantity-based overheads. Templateallocation is another method for allocating overheads. This method does not allocatecosts, but determines the quantities used by the receiver object. The costs are thencalculated by valuating the quantities with a price. This enables costs to be determinedaccording to cause.

Interest calculation plays an important role in long-running, cost-intensive projects. InSAP Project System, planned and actual interest calculation can be used to calculateand update interest.

With cost forecasts, you can adjust cost planning to changing circumstances duringthe execution phase of the project. In a cost forecast, the system determines andvaluates the remaining activities on the basis of the planned, forecast, and actualvalues in the network.

You use the progress analysis to compare the planned and actual progress of yourproject with the results actually achieved.

Results analysis carries out a period valuation of the project results. Data such as stockvalues, cost of sales, and reserves are calculated here.


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Using the �project-related incoming orders� function, the system determines keyfigures for incoming orders and open orders from sales orders assigned to the project.This enables you to draw conclusions at an early stage regarding the anticipated resultof a customer project.

You use project settlement to allocate the costs and revenues in the projects, or theresults analysis data to one or more receivers.

Project SettlementWhen you settle your project, costs and revenues are transferred toFinancial Accounting (G/L account), Asset Accounting (fixed asset), CostAccounting/Profitability Analysis (order, cost center, profitability segment) or ProjectSystem (WBS elements, network, activities). Settlement rules determine whichportions of a sender�s costs are allocated to which receivers. Settlement rules arestored in the sender objects and contain distribution rules and settlement parameters.They are required in order to settle the project. Typical scenarios for settling theprojects used in this course are shown in the �Settlement Scenarios� diagram.

Figure 66: Settlement Scenarios

The WBS elements for investment project E-99## are settled to assets underconstruction (AUC). The AUC were created automatically when the WBS elementswere released (this is controlled by the investment profile). Rules prescribing


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settlement to AUC can be generated automatically when the WBS elements are settledfor the first time. When the project is technically closed, the WBS elements are settledto an asset master record, and the values are transferred from the AUC to the asset.

In the sales project T-200##, only the billing element is settled because resultsanalysis is generally carried out at the billing element level. The results analysis datacontains not only the costs and revenues for the billing elements, but also for allthe WBS elements and activities subordinate to the billing elements. This being thecase, only the billing element has a settlement rule. All other objects are assigned thesettlement profile Do not settle.

Schedule ManagerThe Schedule Manager is a user-friendly tool that enables you to plan and edit allperiod-end closing actions performed in the SAP ERP Central Component. The toporganizational object in the Schedule Manager is the task list. It contains a hierarchicalrepresentation of tasks in the form of a task list from the various applications (forexample, Financial Accounting, Cost Center Accounting, Project System, and so on).You schedule the tasks in the task list by dragging and dropping them on the calendar(if you schedule for a point in time in the past, you will be able to start immediately).The tasks can cover the following functions:

� ABAP reports (example: Generate Settlement Rules in Collective Processing)� Transactions (example: Set Period Lock)� Memory joggers (example: the note �Upon completion, inform those involved�)� Flow definitions

A flow definition is created in the Workflow Builder and comprises individual flowsteps. These steps include scheduling programs with variants in job control in the SAPsystem and user interactions involving a user being sent information by E-mail. Theflow definition in the �Schedule Manager� diagram shows the overhead applicationstep followed by the results analysis step followed by the settlement step. You canview all the information on an active or completed job that was scheduled in theScheduler by calling up a monitor. Any errors that occur can be displayed in themonitor, investigated and, if necessary, corrected. When you restart the procedure,only the records that contained errors are processed.


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Figure 67: Schedule Manager


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Exercise 14: Period-End Closing

Exercise ObjectivesAfter completing this exercise, you will be able to:� Evaluate the result of the period-end closing activities carried out for your

projects

Business ExampleAt the beginning of a new fiscal year period, various periodic procedures, suchas overhead application, results analysis and settlement, are normally carried outfor investment and customer projects for the period that has just come to an end.To schedule, execute, and monitor the jobs, which in certain cases may affect allcomponents, you use the Schedule Manager.


Task 1: Period-End Closing � Projects E-99## andT-200## (to be carried out by instructor)To carry out period-end closing for projects E-99## and T-200## using the ScheduleManager, you have to run a number of periodic procedures. First, you create aselection variant, which will be used later on for collective processing, as well assettlement rules and results analysis keys for the customer projects. In the ScheduleManager, you create a simple task list and a flow definition in order to carry outthese procedures.

1. Instructor only: Procedures that are performed periodically (such as overheadcalculation, results analysis or settlement) are usually processed collectively fora large number of projects in the background. The projects are selected forcollective processing by means of a selection variant. In the Project Systemmenu, create a selection variant PLM200 with which all the projects in thecourse, that is T-20001 to T-20020 and E-9901 to E-9920 are selected.If necessary, test the scope of your selection. Enter Selection VariantPLM200 as the attribute. Save the variant and return to the SAP menu.

2. Instructor only: You will require results analysis keys and settlement rulesfor analyzing the results and settling the projects. You can either enter thismaster data manually for the WBS elements/activities, or you can derive it incollective processing. Generate settlement rules and results analysis keys for the



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customer projects in collective processing. Use the selection variant PLM200and the current period of the current fiscal year. Display the details of the objectsprocessed and return to the SAP menu.

3. Instructor only: In the Schedule Manager, all periodic procedures from thevarious components of the SAP system can be executed and monitored together.

In the Schedule Manager, create a flow definition that includes the three periodicprocedures overhead calculation, results analysis and settlement. To do this,copy the existing flow definition Z-131. Use Z-131-20 and Period-EndClosing PS PLM200 as the new identification and description.

Modify your flow definition in the Workflow Builder by changing the name toSelect Projects PLM200 for the PS Object List Selection list and create anew variant SV-131-20. In this variant, enter your selection variant PLM200,the current period, current fiscal year and Select Objects PLM200, forexample, as the description in the attributes. Save the variant, and go back tothe Workflow Builder.

Also change the Check the Objects in the Worklist step by entering your SAPuser name as the message recipient (for example, PLM200-20). Go back tothe Workflow Builder graphic and save your flow definition as a local object.Then activate the flow definition and return to the initial screen of the ScheduleManager.

4. Instructor only: In the Schedule Manager, create a new task list with theidentification Z-20. Enter Periodic Procedure PLM200 as the nameand save your task list.

Change the task list Z-20 by creating the flow definition Z-131-20 you definedearlier as a task for the task list. Save your changes and return to the initialscreen of the Schedule Manager.

Hint: A task list usually comprises different flow definitions (forperiodic procedures in Financial Accounting, Cost Center Accounting,and so on). It is also possible to assign individual ABAP reports,transactions, memory-joggers, and documents. The task list covers all ofthe periodic procedures in an organization (FI, CO, PS, and so on).

5. Instructor only: In the following step, you will carry out and monitor theperiodic procedures for the investment and customer projects using the ScheduleManager. First, specify the time at which the task Period-End Closing PS



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PLM200 is to be executed using Drag & Drop in the daily overview of theSchedule Manager. When you schedule the task, use a time earlier than thecurrent point in time so that you can start the task immediately.

Use the job monitor to track the progress of the various steps in the task. Refreshthe data displayed at regular intervals until a message appears on the expresswork item Check the Objects in the Worklist.

Then go from the monitor to the object list containing all the objects edited inthe task. Display the legend for the processing status and, where appropriate,object messages on objects that were not processed properly. Then go back tothe basic screen of the Schedule Manager.

6. Instructor only: You changed the step Check the Objects in the Worklist in yourflow definition so that you will receive a workflow as the person responsibleafter the periodic procedure has been completed. Create a new session todisplay the appropriate workflow work item in the Business Workplace. Finishprocessing the worklist if no errors occurred.

Go back to the Schedule Manager session. Refresh the calendar, and check overthe status of your flow in the daily overview. Then return to the SAP menu.

Task 2: Optional: Evaluate Period-End Closing � ProjectsE-99## and T-200##Optional: Analyze the changes to the two projects E-99## and T-200## as a result ofthe period-end closing procedures using a cost element report.

1. Use the plan-based cost element report called Actual/Commitment/Total/Plan inCO Area Currency to analyze the costs of the two projects E-99## and T-200##following period-end closing.

What changes have been made as a result of the periodic procedures?


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Solution 14: Period-End ClosingTask 1: Period-End Closing � Projects E-99## andT-200## (to be carried out by instructor)To carry out period-end closing for projects E-99## and T-200## using the ScheduleManager, you have to run a number of periodic procedures. First, you create aselection variant, which will be used later on for collective processing, as well assettlement rules and results analysis keys for the customer projects. In the ScheduleManager, you create a simple task list and a flow definition in order to carry outthese procedures.

1. Instructor only: Procedures that are performed periodically (such as overheadcalculation, results analysis or settlement) are usually processed collectively fora large number of projects in the background. The projects are selected forcollective processing by means of a selection variant. In the Project Systemmenu, create a selection variant PLM200 with which all the projects in thecourse, that is T-20001 to T-20020 and E-9901 to E-9920 are selected.If necessary, test the scope of your selection. Enter Selection VariantPLM200 as the attribute. Save the variant and return to the SAP menu.

a) In the SAP menu, choose Accounting→ Project System→ Financials→Period-End Closing→ Current Settings→ Create Selection Variant forCollective Processing. On the initial screen, enter PLM200 in the Variantfield and choose Create.

To select several projects on the selection screen, choose MultipleSelection in the Project row. In the dialog box, choose Ranges and enterthe following two ranges (for 20 participant groups, for example):

E-9901 to E-9920

T-20001 to T-20020

Then choose Copy.

Test the scope of your selection by choosing Text Selection. The numberof project definitions found should be approximately twice the numberof groups participating in the course. Return to the selection screen bychoosing Enter.

To enter attributes for your variant, choose Attributes. In the Descriptionfield, enter Selection Variant PLM200. To save the variant,choose Save. To return to the SAP menu, choose Back (twice).



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2. Instructor only: You will require results analysis keys and settlement rulesfor analyzing the results and settling the projects. You can either enter thismaster data manually for the WBS elements/activities, or you can derive it incollective processing. Generate settlement rules and results analysis keys for thecustomer projects in collective processing. Use the selection variant PLM200and the current period of the current fiscal year. Display the details of the objectsprocessed and return to the SAP menu.

a) In the SAP Project System menu, choose Project System→ Financials→Period-End Closing→ Single Functions→ Settlement Rule→ CollectiveProcessing. Enter the following data on the initial screen:

Field Name ValuesSelection variant PLM200

Period Current month

Fiscal year Current year

Background Processing No

Test Run No

Detail Lists Yes

Choose Execute.

To call up the detail list, choose Next List Level.

Hint: No settlement rules have been generated for the investmentprojects E-99##. Reason: When the investment projects werereleased, assets under construction (AUC) were generatedfor all WBS elements (this was controlled by the investmentprofile). During the first settlement, the system generates an AUCsettlement rule internally. When (and only when) the project istechnically closed, the WBS elements are settled to an asset masterrecord, and the values are transferred from the AUC to the asset.

In the case of the customer projects, a profitability segmentsettlement rule was generated for billing elements T-200##. Atthe same time, results analysis key 130001 was assigned for theseWBS elements. No settlement rules were generated for any otherWBS elements. Instead, a settlement profile 130002 (Do not settle)was assigned. Reason: Results analysis at billing element level



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includes all of the planned and actual values of any lower-levelWBS elements, orders and activities. Consequently, only thebilling element is settled.

To return to the SAP menu, choose Back (three times).

3. Instructor only: In the Schedule Manager, all periodic procedures from thevarious components of the SAP system can be executed and monitored together.

In the Schedule Manager, create a flow definition that includes the three periodicprocedures overhead calculation, results analysis and settlement. To do this,copy the existing flow definition Z-131. Use Z-131-20 and Period-EndClosing PS PLM200 as the new identification and description.

Modify your flow definition in the Workflow Builder by changing the name toSelect Projects PLM200 for the PS Object List Selection list and create anew variant SV-131-20. In this variant, enter your selection variant PLM200,the current period, current fiscal year and Select Objects PLM200, forexample, as the description in the attributes. Save the variant, and go back tothe Workflow Builder.

Also change the Check the Objects in the Worklist step by entering your SAPuser name as the message recipient (for example, PLM200-20). Go back tothe Workflow Builder graphic and save your flow definition as a local object.Then activate the flow definition and return to the initial screen of the ScheduleManager.

a) Call up the Schedule Manager by choosing Project System→ Financials→ Period-End Closing→ Schedule Manager, for example. To make thedata on the screen easier to read, close the window with the user notes bychoosing User Notes Off. Choose Extras→ Flow Definition→ EditFlow Definition.

In the dialog box, enter Z-131 in the Flow Definition field and chooseCopy.

Enter the following data in the dialog box:

Field Name ValuesFlow Definition Z-131-20

Description Period-End Closing PSPLM200




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If necessary, close the dialog box containing the legend . The WorkflowBuilder then appears in which you can edit your periodic proceduresgraphically.

b) To adjust the object selection, double-click the PS Object List Selectionstep in the center of the work area.

Enter Select Projects PLM200 as the new name for this step. Tocreate a new variant for the selection, enter SV-131-20 in the Variantfield and choose Create Variant. Choose For All Selection Screens inthe dialog box. Confirm the dialog box with Continue.

Enter the following data:

Field Name ValuesSelection variant PLM200

Period Current month

Fiscal year Current year

To enter attributes for your variant, choose Attributes. In the Descriptionfield, enter Select Objects PLM200.

Hint: On this screen, you can define selection variables forindividual selection objects (such as period, fiscal year). Theadvantage of this is that once defined, the process remainsunchanged. The system merely assigns different values to theselection variables using table TVARV (for example, modifiedperiods or fiscal years).

To save the variant, choose Save. To return to the graphic overview inthe Workflow Builder, choose Back twice.

c) To enable your SAP user to be informed later on once the periodicprocedure has been completed, double-click Check the Objects in theWorklist in the center of the work area and enter your user (for example,PLM200-20) in theMessage Recipient User field. To return to the graphicoverview in the Workflow Builder, choose Back.

To save your flow definition, choose Save and Local Object in thedialog box that appears.



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Then activate the flow definition with Activate and return to the initialscreen of the Schedule Manager with Back.

4. Instructor only: In the Schedule Manager, create a new task list with theidentification Z-20. Enter Periodic Procedure PLM200 as the nameand save your task list.

Change the task list Z-20 by creating the flow definition Z-131-20 you definedearlier as a task for the task list. Save your changes and return to the initialscreen of the Schedule Manager.

Hint: A task list usually comprises different flow definitions (forperiodic procedures in Financial Accounting, Cost Center Accounting,and so on). It is also possible to assign individual ABAP reports,transactions, memory-joggers, and documents. The task list covers all ofthe periodic procedures in an organization (FI, CO, PS, and so on).

a) You are still in the Schedule Manager. Choose Task List→ Create. In theTask List field, enter Z-20 and confirm your entry with Enter. Enterthe following data:

Field Name ValuesText in the row Task List Z-20 Periodic Procedure

PLM200


To save the task list and return to the screen for editing the task list, chooseSave and Back.

You are now in a screen for changing the task list. To include your flowdefinition Z-131-20 as a task in the task list, select the task list PeriodicProcedure PLM200 and then choose Insert Task.

In the dialog box, choose Flow Definition as the Type of Task and useZ-131-20 in the appropriate field. Confirm your entry with Enter.

If you choose Expand Subtree, your flow definition Period-End ClosingPS PLM200 is displayed as a task in the task list. To save your changesand return to the initial screen of the Schedule Manager, choose Saveand then Return to Scheduling.



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5. Instructor only: In the following step, you will carry out and monitor theperiodic procedures for the investment and customer projects using the ScheduleManager. First, specify the time at which the task Period-End Closing PSPLM200 is to be executed using Drag & Drop in the daily overview of theSchedule Manager. When you schedule the task, use a time earlier than thecurrent point in time so that you can start the task immediately.

Use the job monitor to track the progress of the various steps in the task. Refreshthe data displayed at regular intervals until a message appears on the expresswork item Check the Objects in the Worklist.

Then go from the monitor to the object list containing all the objects edited inthe task. Display the legend for the processing status and, where appropriate,object messages on objects that were not processed properly. Then go back tothe basic screen of the Schedule Manager.

a) You are still in the initial screen of the Schedule Manager. To start theperiodic procedure, drag the Period-End Closing PS PLM200 task tothe right of the daily overview to the time 8:00, for example. In the dialogbox that appears, Immediately is defaulted as the execution time. Confirmthe dialog box with Enter.

Hint: In the daily overview for the current time, the Period-EndClosing PS PLM200 task is scheduled and active . In themonthly overview, the day on which the task has been scheduledappears in yellow.

b) To call up the job monitor, choose Monitor.

Hint: The monitor shows you whether, and if so when, individualsteps have been completed, and what the status of the various stepsis (no errors detected, errors detected, and so on). You can enlargethe chart on the left or scroll to the right in the list to display thenumber of objects with errors detected in each step. If you click anyline in this overview, and then click the right-hand mouse button,you can display and call up the various functions that are available.



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Refresh the list in the job monitor a few times. To do this, chooseRefresh. When doing so, watch how the system handles the various processin the flow definition. A dialog box then appears regarding receipt ofthe express work item Check the Objects in the Worklist. Confirm theinformation with Enter.

c) To display further information on the objects processed, position yourcursor on the line Period-End Closing PS PLM200 and choose ObjectList in the context menu (right-click). Select all the statuses displayed bychoosing Select All and confirm the filter criteria with Enter.

Hint: The rows in the object list show the objects processed, andthe columns contain the various processing steps (overheads,results analysis, settlement). The icons indicate the processingstatus of the objects. You can:

� Set statuses manually (if, for example, you still want to goahead despite errors)

� Go directly to master data maintenance� Call up cost reports for the objects� Analyze the error log for the objects

To display the legend for the processing status, choose Icon Legend.Choose Enter to close the legend again.

Check the status of the objects displayed. Make any necessary correctionsusing the tools mentioned above (master data maintenance, for example).Select a line in the object list with the status Error, Object Messages,and take a look at the log. You can change the master data of an objectby choosing Edit Master Data.

Go back to the initial screen of the Schedule Manager by choosingBack. In the daily overview, the task is still displayed with the statusProcessing is Active.

6. Instructor only: You changed the step Check the Objects in the Worklist in yourflow definition so that you will receive a workflow as the person responsibleafter the periodic procedure has been completed. Create a new session todisplay the appropriate workflow work item in the Business Workplace. Finishprocessing the worklist if no errors occurred.



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Go back to the Schedule Manager session. Refresh the calendar, and check overthe status of your flow in the daily overview. Then return to the SAP menu.

a) To create a new session, choose Create New Session. In this session,call up the list of your workflow work items by choosing SAP Menu→Office→ Workplace and then Inbox→ Workflow. Double-click the lineCheck the Objects in the Worklist in the workflow list.

You can use the workflow to reprocess objects with errors or to finishprocessing the worklist if no errors occurred. Choose the appropriatealternative depending on the result.

b) Go to the session in which the Schedule Manager is still open. To refreshthe data displayed in the daily overview of the Schedule Manager, chooseRefresh Calendar. Once the flow has been processed - and no errors

were detected - and completed (alternative 1 in the workflow), the status isset to Processing Completed Without Errors.

To return to the SAP menu, choose Back.

Task 2: Optional: Evaluate Period-End Closing � ProjectsE-99## and T-200##Optional: Analyze the changes to the two projects E-99## and T-200## as a result ofthe period-end closing procedures using a cost element report.

1. Use the plan-based cost element report called Actual/Commitment/Total/Plan inCO Area Currency to analyze the costs of the two projects E-99## and T-200##following period-end closing.

What changes have been made as a result of the periodic procedures?

a) If you have opened the cost element report Actual/Commitment/Total/Planin CO Area Currency in a separate session, go to this session and refreshthe report with Report→ Refresh (in the report options, the Expert Modemust be set).

Otherwise, choose SAP Menu→ Accounting→ Project System→Information System→ Financials→ Costs→ Plan-Based→ By CostElement→ Actual/Commitment/Total/Plan in CO Area Currency. Enterthe following data in the selection screen:



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Field Name ValuesProject E-99##

Plan Version 0

To Fiscal Year Current year + 2 years


To select project T-200##, choose Multiple Selection on the far rightin the Project row.

In the dialog box containing the list of single values, enter projectT-200## and confirm your selection by choosing Copy.

To start the report, choose Execute.

To evaluate investment project E-99##, go to the navigation panel on theleft and select the object PRO E-99## Elevator Gr##. Only the costsof project E-99## are displayed.

Hint: As a result of the period-end closing activities carried out,actual costs are displayed for various cost elements for overheads(for example 655200 Overhead Surcharge - Personnel). Settlementof the WBS elements to an asset under construction is indicated inthe cost element row 811000 Capitalized Activity.

To evaluate customer project T-200##, go to the navigation panel on theleft and select the project PRJ T-200## Turbine Gr##. Only the costsof project T-200## are displayed.

Hint: Actual costs are also displayed for this project on the basisof the overhead costs applied. Settlement of the results analysiscosts to the profitability segment is indicated accordingly for theactual costs.


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Lesson Summary

You should now be able to:� Name various period-end closing procedures� Describe the scenarios for settling the two example projects


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Unit Summary PLM200

Unit SummaryYou should now be able to:� Name various period-end closing procedures� Describe the scenarios for settling the two example projects


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PLM200 Course Summary

Course SummaryYou should now be able to:

� Use work breakdown structures, activities, and networks to structure projects� Discuss aspects of planning dates, resources, materials, costs, and revenues� Name the business processes used for budgeting� Explain aspects and processes used for executing projects� Explain various period-end closing activities in Project Management� Use analytics and reporting options for monitoring project data


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Course Summary PLM200


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Appendix 1mySAP PLM Program and Project Management

Program and Project Management is a key area of the enterprise solution mySAPProduct Lifecycle Management (PLM). mySAP PLM Program and ProjectManagement not only includes project management (SAP PS) but also providesthe Life-Cycle Profitability Analysis and Strategic Program Management tools forforecasting the cost of new products throughout their entire lifecycle and analyzingexisting and planned product portfolios. The evaluations are carried out in the SAPBusiness Information Warehouse, which means that all the necessary information, forexample from SAP Strategic Enterprise Management and non-SAP applications,can be integrated.

Figure 68: mySAP PLM Program and Project Management


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Appendix 1: mySAP PLM Program and Project Management PLM200


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Appendix 2Versions

Simulation versions in SAP Project System are modifiable versions of a project. Youcreate them, for example, during the quotation phase before an operative project hasbeen created, or for alternative planning of existing operative projects or parts ofthese. You can simulate and save changes to a project without them affecting theoperative version. If necessary, you can create several simulation versions, comparethem with each other, and transfer the changes back to the operative project.

Figure 69: Simulation Versions


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Appendix 2: Versions PLM200

Project versions are snapshots of a project and are used to record a history of theproject itself. You can create project versions manually (time controlled) or on thebasis of a particular status (action controlled). You cannot change project versions.

Figure 70: Project Versions


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Appendix 3Subnetworks

Subnetworks allow you to specify a network in greater detail during the course of aproject. Subnetworks can be nested to any required depth, in other words, you cancreate a subnetwork for a subnetwork.You can also create maintenance orders assubnetworks for a higher-level network.

Figure 71: Subnetworks


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Appendix 3: Subnetworks PLM200


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Appendix 4Network Configuration

In Project System, you can use the network configuration function if you want to createdifferent variants of a complex product. The networks and work breakdown structuresare basically the same for the different variants, but have specific characteristics,such as alternative or additional activities or different quantities (number of materialcomponents, work, duration).

When you use the configuration function, you normally start with a maximumstandard structure as a template, that is, the standard network and standard workbreakdown structure contain all the objects (WBS elements, activities, materials,and so on) that are required for every possible variant of the product. When youcreate an operative network using a configurable standard network as a template,you specify the variant to be manufactured (characteristic value assignment). Usingobject dependencies, you specify which activities and material components from thestandard network are to be copied to the network. Only those elements that have beenassigned to the activities selected by the configuration are taken from the standardwork breakdown structure together with the higher-level WBS elements.


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Appendix 4: Network Configuration PLM200

Figure 72: Configuring Project Structures


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Appendix 5Using Milestones

Milestones are events that are of particular relevance to a project. You can assignmilestones to activities or WBS elements. If you want to use particular milestonesseveral times in project planning, you can create standard milestones, and use theseas templates to copy from. You can analyze milestones and their respective dates inReporting. Milestones are also used in Project System for the tasks and functionsshown in the �Using Milestones� diagram (the milestones can be used more thanonce). The following milestone functions are available:

� Release subsequent activities� Release up to release milestone� Include standard network� Create network� Include subnetwork� Start workflow task


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Appendix 5: Using Milestones PLM200

Figure 73: Using Milestones


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Appendix 6Documents@web

You can assign documents to projects directly over the Internet or use a browser toview documents that have already been assigned without accessing the SAP GUI.The Internet scenario �Creating Project Documents on the Web� is illustrated in the�Documents@web� diagram.

Figure 74: Documents@web


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Appendix 6: Documents@web PLM200

To carry out searches on the Web for documents from the Document ManagementSystem, you can also use the �Document Search� Internet scenario. With this type ofsearch, you can enter data from the document environment, such as an assigned WBSelement, as well as data from the content of the original file (full text search).


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Appendix 7Project Portals

SAP Enterprise Portal offers companies a Web-based platform that allows employees,vendors, business partners, customers, and investors to collaborate with each other.Using the Enterprise Portal, you can access internal and external information, aswell as applications and services that are relevant to your role within your company.mySAP Product Lifecycle Management provides you with Business Packages for theindividual key areas to help you set up your portal. The Business Package for projectscontains short programs (iViews) that you can use to retrieve data from projects and tocompile content pages for your portal. The �Project Portals I� and �Project Portals II�diagrams show an example of a project portal.


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Appendix 7: Project Portals PLM200

Figure 75: Project Portals I

The work area of the Enterprise Portal comprises a title area and a number of pages.The title area contains the company�s corporate header, search and personalizationoptions, as well as a navigation panel with various tab pages. The pages on the tabpages themselves can be either Web pages or different iViews. The iViews are notcompletely separate from each other; they support detailed navigation and exchangedata with each other. For example, the �Master Data� iView shows the data for theobject that was just selected using the �Project Structure� iView.


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PLM200 Appendix 7: Project Portals

Figure 76: Project Portals II


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Appendix 7: Project Portals PLM200


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Appendix 8Progress Analysis

If you want to control your project effectively, you will need to do more than just lookat costs, resources, and schedules in isolation. You will only be able to draw informedconclusions as to the progress and current status of your project if you compare thesevalues with the results actually achieved. Progress analysis enables you to do just that.It is suitable both for the internal control of a project and for external reporting.

You can estimate the percentage of completion (POC) of the WBS elements, activitiesand activity elements, or you can have it calculated automatically on the basis ofexisting data. In each case, a planned POC (expected progress at a specific pointin time) and an actual POC (progress actually made at a specific point in time) aredetermined. By specifying a weighting factor (planned costs, for example), you canaggregate these values in the WBS.

The system uses a factor such as planned costs to calculate the progress values fromthe POCs:

� BCWS: Costs as per planned progress� BCWP: Target costs as per actual progress� Actual costs: Costs actually incurred

By comparing the earned values, you can collect some very important information.By comparing BCWS with BCWP, you can see if there are any deviations from theschedule (the project is progressing too slow); by comparing the BCWP with theactual costs, you can see if there are any cost variances (project is too expensive).


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Appendix 8: Progress Analysis PLM200

Figure 77: Progress Analysis: Functions

Measurement techniques determine how the progress value (planned and actual) iscalculated. The measurement techniques available in the SAP Project System areshown in the �Progress Analysis: Measurement Techniques� figure. A user exit isalso available to allow you to enter your own progress values. In Customizing, youdefine default measurement techniques for each object (WBS element, activity,project orders). If necessary, you can always overwrite these defaults in the projectstructures. The system uses specific weighting factors to summarize progress valuesin the project structure. One such weighting factor is the project cost plan.


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PLM200 Appendix 8: Progress Analysis

Figure 78: Progress Analysis: Measurement Techniques


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Appendix 8: Progress Analysis PLM200


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Appendix 9Cross-Project Evaluations

It is very important that you should be able to evaluate key figures across projects.There are various ways in which you can do just that:

� In project summarization, you can define as many summarization hierarchies asyou require. Summarization runs aggregate costs, revenues and payment datafor the various nodes in the summarization hierarchies. Summarization reportsare an effective means of reporting across projects.

� In project reports, you can display data in a range of views - you are not restrictedto the project structure view. These alternative views mean that you can evaluateboth commercial and logistical key figures in a cost center hierarchy, profitcenter hierarchy, investment program hierarchy, or a summarization hierarchythat you have defined yourself.

� In Profit Center Accounting and Profitability Analysis, you can evaluate keyfigures for profit centers and profitability segments.

In project summarization, you can evaluate costs, revenues, and payment data acrossprojects. Summarization hierarchies form the basis for project summarization. InCustomizing, you can define as many of these hierarchies as you require. You definesummarization hierarchies using master data characteristics of the WBS elements oractivities. Example of a summarization hierarchy (in IDES: 1301):

� 1. level is always the controlling area� 2. level is the Project Type field (sales projects, investment projects, cost

projects, and so on)� 3. level is the Person Responsible field (Smith, Green, Johnson, and so on)

During an inheritance run, the characteristic values of higher-level WBS elementsare passed on to any lower-level WBS elements and activities that do not have anycharacteristic values of their own.


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Appendix 9: Cross-Project Evaluations PLM200

Figure 79: Project Summarization: Inheritance

During the summarization run, the key figures of the project (costs, revenues andpayment data) are totaled up for the various nodes in the summarization hierarchy.Once the summarization run is complete, you can use summarization reports toanalyze the quantity structure (objects at a summarization node) and values in theentire summarization hierarchy. You can also use the structure information systemor controlling information system to display selected projects in the order of thesummarization hierarchy.


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PLM200 Appendix 9: Cross-Project Evaluations

Figure 80: Project Summarization: Summarization and Evaluation

The Project System logical database (PSJ) forms the basis for reporting in theinformation system. You can display the data retrieved from the database in a range ofdifferent views (the project structure view, for example, or a profit center hierarchyview). You define a hierarchy type for each view and, if necessary, you define ahierarchy or a set for summarization. A user exit is also available for defining viewsof your own. You can use the structure information system and the controllinginformation system to display data in the project views shown in the diagram.


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Figure 81: Project Views

Whereas project controlling involves planning and monitoring one or more projects,Profitability Analysis and Profit Center Accounting are used for different purposes.Profitability Analysis allows you to monitor the external market and individual marketsegments. In Profitability Analysis, reporting is performed on the basis of profitabilitysegments. Project data is posted to Profitability Analysis when you settle a project.Profit Center Accounting allows you to monitor the success of your company�sorganizational units. Reporting is performed at the profit center level. Project data canbe posted to Profit Center Accounting if data is written to a profit center documentwhen Management Accounting (CO) and Financial Management (FI) postings aremade to the project.


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PLM200 Appendix 9: Cross-Project Evaluations

Figure 82: Project Controlling - Enterprise Controlling


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Appendix 10Evaluations with SAP Business Information Warehouse

The Catalog Browser in the Business Explorer enables you to group reports to suityour requirements and quickly access the reports you use most often. You can groupyour favorites into bundles, giving them any name you like and maintaining them asyou want. You can use the Business Explorer to display reports in Microsoft Excel(with Business Information Warehouse enhancements). In Internet and intranetenvironments, the Business Explorer runs in a Web browser allowing you to pagethrough report catalogs and execute reports. The Business Information Warehouse(BW) permits the use of both predefined standard reports and ad-hoc evaluations,both with detailed (drilldown) and multidimensional views ("slice and dice"). Youcan assign reports to single roles. Slice-and-dice operations are possible becausethe data is stored in multidimensional InfoCubes. These contain characteristicsand key figures. The OLAP (Online Analytical Processing) processor uses thecharacteristics to display different views of key figures and dynamically calculatedfigures (derived key figures) in accordance with your requirements. We deliver thefollowing characteristics and key figures in Project System: project definitions, WBSelements, network activities, activity elements, material components, milestones,status information on all relevant objects, budget, statistical key figures for WBSelements, networks, dates, durations and floats, cost information and payment data forrelevant objects, results analysis data.


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Appendix 10: Evaluations with SAP Business Information Warehouse PLM200

Figure 83: Evaluations with SAP Business Information Warehouse


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Appendix 11Scheduling Scenarios

When planning dates in projects, you can define the scheduling parameters yourself.You can also use predefined scheduling scenarios. In the bottom-up schedulingscenario, the earliest activity dates and the finish date of the network are initiallydetermined, for example, from the start date in the network header. Following this,backward scheduling is carried out to determine the latest dates. The dates that havebeen determined in this way are copied as planned dates to the WBS elements towhich the activities are assigned and then extrapolated within the structure. Thisscenario is illustrated in the �Scheduling� diagram in the �Date Planning� lesson.

In the top-down scheduling scenario, you plan dates for WBS elements manually anddefine the project in such a way that the different phases are to be carried out withinspecified periods. The consistency is checked automatically by the system when yousave your data. When scheduling the assigned activities, you can then use the planneddates of the WBS elements as a basis for forward and backward scheduling. Thisscenario is illustrated in the �Top-Down Scenario� diagram.


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Appendix 11: Scheduling Scenarios PLM200

Figure 84: Top-Down Scenario


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Appendix 12Service

Service activities (or service activity elements) trigger similar purchasing proceduresfor external services to externally-processed activities. For service activities, however,you create service specifications, which generally not only contain a service to beprocured but also a complete hierarchy of planned services. You can use value limitsto limit unplanned services. With service activities, you establish a connection tothe MM-SRV component, which supports everything from issuing a request forquotation and awarding the service to entering and accepting services. In contrast toexternally-processed activities, �goods receipt� for services involves the followingtwo steps:

� Entering the services performed� Accepting the services performed


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Appendix 12: Service PLM200

Figure 85: Service


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Appendix 13OCI Interface

The standard Open Catalog Interface (OCI) is available to help you select and assignmaterial components to network activities. You can use this interface to integrate thecomponent selection function for an internal or external catalog, which conformswith the OCI specification, from a network activity. You can then select materialcomponents within the catalog. The components are assigned to the network activityfrom which the catalog was accessed.


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Appendix 13: OCI Interface PLM200

Figure 86: OCI Interface


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Appendix 14In-House Production Process

To plan the material requirements for a project, you assign material components toactivities. Depending on the item category of the component assignment and a rangeof other settings, the material is either purchased or manufactured internally. The�In-House Production Process� diagram shows the procedure involved in producing amaterial in house along with the BOM for its subsequent use in the project.

Figure 87: In-House Production Process


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Appendix 14: In-House Production Process PLM200

In the example shown, material T-20600 is assigned to activity 4000. To procurethe material along with the secondary requirements (T-20610, T-20620, T-20630),requirements planning is carried out (MRP run). In the MRP run, planned ordersand purchase requisitions are generated as planning procurement elements for thematerial and the secondary requirements. The planning procurement elements areconverted to a production order for material T-20600 and purchase orders for thesecondary requirements. The secondary components are then purchased and used inthe production order. The production order is processed and the finished material isposted to stock. The process concludes when material T-20600 is withdrawn fromstock for use in the network.

When the valuated project stock is used for inventory management for the materialcomponents, all values at all production levels are displayed and can be analyzed inthe project information system.


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Appendix 15Progress Tracking

You can use Progress Tracking to track the progress of material components in ProjectSystem networks and purchase orders in Materials Management by monitoring thedates of events you have defined. For example, you can define goods issue or goodsreceipt events to track components. You can enter or schedule the dates of the eventsmanually or use customer enhancements to determine them from system dates orexternal data.

Progress Tracking is a new function available with the Enterprise release. ProgressTracking encompasses the entire range of functions for tracking the dates for materialcomponents in Project System. It also provides a more flexible Customizing tool formaking default settings, as well as a range of additional functions (status information,mass change, copying, filtering, printing, and analysis functions, for example).

The �Progress Tracking: Analysis� figure shows the interface you use to analyzeProgress Tracking data. In the analysis, you can analyze the events along with thedates for the selected objects. You can configure the Progress Tracking profile in sucha way that variances are displayed automatically. By defining user-specific layouts,you can adapt the interface in accordance with your requirements.


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Appendix 15: Progress Tracking PLM200

Figure 88: Progress Tracking: Analysis


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Appendix 16Delivery from Projects

You can select material components that are to be delivered to the customer andautomatically create a delivery note that can then be processed by the shippingdepartment. You can select the components by specifying the project definition, theWBS element, a sales order, or a network. You can refine your selection by specifyingfurther criteria (delivery date, ship-to party, requirements date, activity number,purchase requisition number, and so on). When you deliver from the project, detailscreens for each component display the various quantities related to a component(requirement quantities, item quantities, quantity in delivery, open quantities, availableopen quantities, for example). Once you have selected the material, the delivery noteis created with a reference to the network components.


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Appendix 16: Delivery from Projects PLM200

Figure 89: Delivery from Projects


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Appendix 17Workflows and Mails in Project System

The SAP Business Workflow comprises various tools and functions for the controland processing cross-application processes automatically and for modelling generalbusiness processes. You can also use workflows in Project System to access automatedand integrated processes in cross-area and cross-departmental processes so that youcan optimize the information flow. SAP Office in Project System is generally used forthe following functions:

� Sending PS texts (no workflow)� Taking measures if the budget is exceeded (no workflow)� Making subsequent changes to purchase order-relevant data in the network

(standard task)� Handling variances in confirmations (standard task)� Sending pools of confirmations (standard task)� Executing the milestone function Start Workflow Tasks (user-defined task)


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Appendix 17: Workflows and Mails in Project System PLM200

Figure 90: Workflows and Mails in Project System

You can also use workflows in Project System for configuration change managementduring variant configuration and predefined workflows for claim management.


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Appendix 18Assembly Processing

Assembly processing in Project System is used to execute customer projects that havea similar structure. To trigger assembly processing, create a sales document (customerinquiry or sales order, for example) for a material. Depending on the sales documenttype and the material, the system automatically creates an operative network for thesales document item. When you save the sales document, the system may createa new work breakdown structure that can be identified using the sales documentnumber. In this case, standard structures are used as templates. Due to the directlink between the sales document and the project, data relating to quantities, dates,costs, and revenues, for example is exchanged between the documents. In this way,assembly processing enables you to exchange data between your sales departmentand the project team more effectively.

To cover different product options, you can also carry out variant configurationalongside assembly processing.


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Appendix 18: Assembly Processing PLM200

Figure 91: Assembly Processing in Project System


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Appendix 19Archiving

You can archive your projects and delete operative data from the database. You can usethe structure information system to evaluate your archive versions at a later point intime. Hierarchy reports, cost element reports, and line item reports are also availablefor this. Using the Project System menu, you can archive the following objects:

� Operative project structures and project versions (archiving objectPS_PROJECT)

� Standard networks (archiving object PS_PLAN)� Settlement documents, documents on funds reservations, fixed price agreements,

and fixed price allocation (archiving objects CO_KABR, FM_FUNRES andCO_FIXEDPR)

Objects are often archived and deleted in General Archiving. You can use archivingobject CM_QMEL to archive claims.

Before deleting operative project structures, you should normally carry out the stepsshown in the �Archiving Steps� diagram. The following prerequisites must befulfilled for the various steps:

� Deletion indicator: the balance in the object must be zero. There must not be anyopen purchase requisitions or purchase orders. Assigned orders must also beflagged for deletion.

� Deletion indicator: the object must already be flagged for deletion. The deletionindicator must also be set in assigned orders.

� Delete: the deletion indicator must be set in the objects you want to delete.


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Appendix 19: Archiving PLM200

Figure 92: Archiving Steps


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GlossaryActivity

Task in a network that has a defined start and finish. The Project System has thefollowing activity types: Internal processing, external processing, costs, service

Billing PlanA list of dates from which down payment requests and sales-relevant invoicesare sent to customers. The planned revenues and planned incoming paymentsare automatically derived from the billing plan and recorded in the relevantWBS element.

BOMA complete, structured list of the components that comprise an object. The listcontains a description, the quantity, and unit of measure. The components areknown as BOM items.

BudgetPredefined cost framework for a task or project within a specific period.Budgeting differs from cost planning in that it is binding. Whereas you mustestimate your project costs as accurately as possible during project cost planning,it is in the approval phase that funds are actually allocated in the form of a budget.

ClaimProject-specific notification category A claim is used to document variancesfrom the project plan. You can use claims to plan costs incurred by variances,as well as initiate and monitor follow-up activities.

Company CodeThe smallest organizational unit of Financial Accounting for which a completeself-contained set of accounts can be drawn up for purposes of external reporting.

Controlling AreaAn organizational unit within a company, used to represent a closed system forcost accounting purposes. A controlling area may include single or multiplecompany codes that may use different currencies.

Cost CenterAn organizational unit within a controlling area that represents a defined locationof cost incurrence. The definition can be based on functional requirements,allocation criteria, physical locations, or responsibility for costs.


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Glossary PLM200

Customer InquiryA customer request to a company for a quotation or sales information that isnot binding. The request is received by a sales area that is then responsible forprocessing it further.

Goods IssueA term from Inventory Management denoting a reduction in warehouse stockdue to a withdrawal of stock or the delivery of goods to a customer.

Goods ReceiptA term from Inventory Management denoting a physical inward movement ofgoods or materials from a company, usually with reference to a purchase order orproduction order.

Internal Activity AllocationInternal cost allocation procedure whereby the valuated activities (allocationbases) carried out by cost centers are reallocated to the cost receiver according tothe cause. In internal activity allocation, the service carried out by the cost centeris multiplied by the planned price for the activity type. This results in the coststhat have to be cleared. The sender cost center is credited by this amount andthe receiver object debited.

Internal OrderOrder category in Management Accounting. Internal orders are normally usedfor planning, collecting, monitoring, and settling costs incurred by internalmeasures and tasks.

Investment ProgramHierarchical structuring of a company�s undertaking to create tangible assets orrender services for an approval year.

Maintenance OrderOrder for detailed planning and associated documentation of measures duringmaintenance.

MilestonesObjects representing events that are particularly important for the progress ofthe project or are of special interest. You can assign milestones to individualactivities or WBS elements.

NetworkDescribes the chronological sequence of and dependencies between events andactivities in a project, and maps the actual flow of the project.

Production OrderA production order used in discrete manufacturing.


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PLM200 Glossary

Profit CenterAn organizational unit in Managerial Accounting that reflects amanagement-oriented structure of the organization for the purpose of internalcontrol.

Project DefinitionA binding framework for all the organizational elements created in a project. Theproject definition contains default and control values. When you create a workbreakdown structure, you automatically create a project definition.

Purchase OrderA request or instruction from a purchasing organization to a vendor (externalsupplier) or a plant to deliver a quantity of material or render a service at acertain point in time.

Purchase RequisitionA request or instruction to Purchasing to procure a quantity of a material orservice so that it is available at a certain point in time.

PurchasingA component of Materials Management with the following tasks: procuringmaterials and services externally, determining possible sources of supply for arequirement, monitoring goods deliveries and payment.

RelationshipA way of describing the link between the start and finish points of two activitiesin a network. Relationships determine the sequence of activities.

ReservationA request to material requirements planning to keep a material ready for issue ata future date for a certain purpose. The purpose of a reservation is to ensure thata material is available when required.

Sales OrderA customer request to a company for the delivery of goods or services at acertain time. The request is received by a sales area that is then responsible forfulfilling the contract.

Standard NetworkThe network structures that are not directly associated with a project and can beused as templates for creating other standard networks or operative networks.

Standard Work Breakdown StructureA neutral work breakdown structure that can be used several times over and onlyserves as a template for creating operative work breakdown structures.

WBS ElementA structure element of the work breakdown structure. It describes a concrete taskor a partial task that can be further subdivided. Planned and actual values for aproject are defined and aggregated in WBS elements.


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Glossary PLM200

Work Breakdown Structure (WBS)A model of the project that shows the project activities to be fulfilled inhierarchical form. It divides the project into clearly-structured sections. Theindividual elements of the work breakdown structure are called WBS elements.

Work CenterAn organizational unit that defines where and by whom an activity is to becarried out. The data in the work center can be used for scheduling, costing,and capacity planning.


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IndexAActivity, 5, 36, 51, 92, 117�118,127, 129, 174, 189, 229

Availability Control, 159BBasic Date, 92�93, 128, 173Billing Plan, 131, 212Budget, 156�160, 287CCapacity Requirements, 104CATS, 175�176Claim, 193�194, 291Confirmation, 104, 132, 174,212, 287

Cost Activity, 129, 189Customer Inquiry, 7, 130, 289DDocument Management, 50,258

EEasy Cost Planning, 127�128,190

Execution Services, 127�128,190

Externally-Processed Activity,103, 106, 129, 189, 191

GGoods Issue, 189�190, 192, 283Goods Receipt, 189, 191, 283HHierarchy Graphic, 25, 69, 91

IInternal Activity Allocation,190

Internal Order, 127, 194Internally-Processed Activities,103�104, 189

Internally-Processed Activity,129

Investment Program, 160Item Category, 117MMaintenance Order, 91, 127,175, 251

Mass Change, 51Material, 116, 118, 129,189�192, 279, 281, 283, 285

Milestone, 37, 51, 132, 212,255, 287

mySAP PLM, 4, 247, 259NNetwork, 4, 36, 51, 92, 189, 229Network Costing, 104, 126, 129Network Header, 37Network Structure Graphic, 40,69, 91

OOpen PS, 52, 175Operative Indicators, 23PProduction Order, 117, 176,192, 282

Project Builder, 22, 36, 128Project Definition, 20, 51


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Index PLM200

Project Planning Board, 22, 36,89, 93, 104, 173

PS Cash Management, 214PS Text, 50, 287Purchase Order, 117, 189�192,283, 287

Purchase Requisition, 106, 117,189�192

QQuotation, 130�131RReference Point, 118Relationship, 5, 36, 40, 51, 89SSales Order, 7, 131�132, 212,289

Sales Pricing, 130Scheduling, 92, 104, 275Service, 103, 106, 129, 189,191, 277

TTransferring BOMs, 118WWBS Element, 5, 20, 23, 36,51, 92, 127�128, 157, 173,189, 194, 213, 228

Work Breakdown Structure, 4,20, 92, 127, 157

Work Center, 104�105Workforce Planning, 105, 175


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FeedbackSAP AG has made every effort in the preparation of this course to ensure the accuracyand completeness of the materials. If you have any corrections or suggestions forimprovement, please record them in the appropriate place in the course evaluation.


PLM200 Project Managment

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