Professional Documents
Culture Documents
Gerald B. Steele
Principal Consultant, SAP America, Inc.
Business Case #1 PS Business case description A mid-market Pharmaceutical company decides they need a better integrated tool to manage their R&D projects. Their requirements included:
Resource planning along a discrete curve over a long period of time. Detailed cost planning for external partners with procurement process. This includes multi-country/multi-currency highly regulated procurement and invoice postings. Use of settlement to move costs to multiple receivers based on type fo costs.
G/L for R&D costs, CCtr for clinical trials costs, PCA for other costs.
Use of CATS to enter time against projects for every employee in the R&D organization.
In this case, PS was a better fit as it best met the demands of the customer to integrate HR, FI/CO, MM, and PCA.
SAP AG 2006, Title of Presentation / Speaker Name / 3
Business Case #1 PS Chose to use Integrated Planning on WBS elements due to requirement to discretely plan resource across extensive duration. They also chose to use the Project Planning Board to manage ALL aspects of their Project Structure Planning and utilize WBS Cost planning to manage their resource planning against cost centers.
Summary:
This Pharma customer is live with PS and most of the ERP modules for their R&D organization.
This Pharma customer implemented PS for the purpose of integrating their financial and procurement tools with their project management tool.
They utilize integrated planning with CO to get a better view of their required resource load over time across projects.
Business Case #2 xRPM Business case description Customer uses PS in their R&D organization and MS Project in their IT organization. They do not have a solution to manage ANY portfolio data. They have the need to view and manage their IT portfolio across their enterprise. Because they currently use MS Project for IT projects and will want to manage their entire project portfolio, we proposed using xRPM. Questions regarding this decision surrounded the long-term vision of portfolio management. Data origin (where the data comes from:
Project structures (MS Project, Artemis, Plan View, Primavera, etc)
Resources (MS Project, PeopleSoft/Oracle, SAP, etc) Costs (MS Project, Primavera, Oracle, SAP, etc)
The use of xRPM allows this customer to continue using their existing project management tools while providing the capability to add additional tools to manage the enterprise portfolio as they determine their portfolio design.
SAP AG 2006, Title of Presentation / Speaker Name / 5
Introduction to Project Financial Integration A key differentiator in the SAP tools for Project & Portfolio Management (PPM) is the integration into the back-end Financial and Controlling systems. This functionality eliminates the need to enter data into multiple systems and therefore maintains the official system of record. All of the PPM tools SAP offers have this functionality. The SAP Portfolio tool, xRPM, also provides connectivity from other back-end Financial Management, Human Resources, and Project Management tools to provide greater flexibility across the Enterprise portfolio.
Where is the Financial Data In the world of PPM tools such as Project Systems (PS) in ECC, cProjects 4.0, or xRPM, neither costs nor revenues originate via direct transactions. As such, costs are moved into the PPM tools PS, cProjects, and xRPM from other parts of the system such as Purchasing, Goods Movements, Sales Document Billings, Labor Confirmations, etc. The following slide demonstrates how labor costs are generated and stored in the Organizational Breakdown Structure (OBS) and then moved to the project (PS) via labor confirmations and later off the project via settlement. Direct posting to the project occurs when goods receipt from a PO is executed, an invoice is posted, or a goods issue occurs.
Work Centers
Activity Types/ Rates $50/hr
Cost Center
1,250 2,500 750
1.1
$25/hr
Design 750
Project
$75/hr
5 hrs 10 hrs 100 hrs 10 hrs
1.2
Engineering 250
0020
Craft 2,500 20 hrs 25 hrs
1.1
1.2
1.3
0040
Engineering 1,000
0020
0030 0060
Asset Settlement
Airplane $4,500
Project $4,500
Overall planning (hierarchical planning) Cost planning using activities/ network costing
600.000 400.000 200.000
E E F F
10h 10h service service 1421 1421 10h 10h vendor vendor 1000 1000 ce ce 466000 466000
Unit Costing
1
K K $5000 $5000
S
Projects and Orders Easy Cost Planning
I/0099
PP
PM/CS
CO
P
1
P-1
0010 (E), 80h, 0020 0020 (F), (F), 10h, 10h, Wctr 2000, AT 1421 550000017 PurcInfo PurcInfo
P-2
0040 0040 (E), (E), 80h, 80h, Wctr 2100, AT 1420 $5000 $5000 0050 0050 (K), (K), CE CE 400000, 400000,
$5000 $5000
$2000
P P-1
0010 0020 0030
P P- 2
0040 0040 0050 0050 0060 0060
Planned costs
1 2 3 4 5 6 7 8 9 10 11
Periods
Do you need multiple CO plans? Do you need varying levels (detailed vs. lump-sum) of cost planning? Do you need cash flow planning?
Dates
Costs, Revenues
Payment data
X
Resources
PS
PM AM
CO HR
PS Financial Posting Questions Do you need Accrual (FI) postings? Do you need Settlement? Do you need Internal Order integration for FI/CO control? Do you need statistical projects? Do you need Earned Value/Progress Analysis?
Invoice verification
Materials
Goods receipt
"N"
entry
Actual costs
Purchase monitoring
Vendor selection
PS Procurement
Do you need material planning? Do you need procurement commitment tracking? Do you need Project Stock?
T T -- 20620 20620
Vendor 1000
Purchase components
PS Using Production Do you need production integration? Do you need to track production costs and WIP in your project? Do you need ETO/MTO BOM integration with inventory and cost management? Do you need Variant Configuration?
2000
Total
P S D D O C M T D I S T R B T
L N D T O T A L
Revenues Sales order with billing plan Billing plan in WBS element
Time
Billing plan
01 02 03 04 05 06
B B
Billing plan
Billing plan
Do you need Results Analysis? Do you need Profitability Analysis & reporting? Do you need Billing?
Resource Related Billing (RRB), Lump Sum, Fixed Price, Progress Payments/Down Payments, Milestone Billing, etc
cProjects: Project Accounting Project cost controlling using integration to mySAP ERP Financials and Project System (PS) Multilevel controlling: cProjects structures can be replicated into PS structures Costs can be settled on internal orders or WBS elements Calculation of project costs based on role demand (plus integration with Easy Cost Planning in mySAP ERP)
Set up Accounting
Project Manager
Task:
Link project structure to accounting structure
Solution:
cProjects 4.0
Benefits:
Use SAP Project System for Planned and Actual Costs
Assignment types
Manual assignments
Automatic assignments to WBS Elements
Assignment rules
Role based Task based
Enhancements
Customer-specific scenarios can be executed using the BAdI IAOM_DET_CO_SCENARIO
SAP AG 2006, Title of Presentation / Speaker Name / 26
Multilevel Controlling 2/2 Enables bottom-up planning and top-down budgeting, billing and results analysis (RA) aggregating values and quantities in the hierarchy Calculation services to create cost estimates based on the assigned cProjects structure while costs (actual/planned) are stored on the WBS elements. Settlement of costs originating from various sources:
Actual costs derived from recorded and confirmed time on cProjects tasks using CATS. Costs derived from procurement or goods movements Costs derived from project-related travel.
cProjects Structure
PS Structure
Assignment in PS data
A new tab cProjects in the WBS elements sight is coming with ECC 6.0 (ERP 2005) The assigned cProjects item is shown here.
SAP ECC
cProject Controlling Object (PS/IO) Contract cProject
SAP ECC
Controlling Object (PS/IO) Contract
Pre-Billing
Billing
T&E on cProject-task / role from worklist Confirmed hours / days automatically updated in cProject-task Costs updated on CO-Object => Less process steps and one world for project team
Product Manager
Task:
Solution:
xRPM 4.0
Benefits:
Compare forecasted, planned and actual data
Questions