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Dates can be manually planned in WBS hierarchy which does not have

networks. This can be done in project planning board by dragging the mouse for

the respective WBS element.

Also in structure planning one can enter the dates in table.

The Basic dates flows in WBS hierarchy as top!down from higher levels tolower levels or e"trapolated from lower levels to superior WBS element.

The basic dates consistency can be checked with in the WBS structure.

While e"ecuting the project the actual dates can be set in project planning board

or information system structure by dragging the respective WBS element bar and

compare the actual dates with basic dates.

There are several planning forms to plan basic dates on WBS element like Top

down #$nherited from to top to down% Bottom up #e"trapolated from bottom to

top level% &ree planning and Strict bottom up.

&or assigning actual dates which is Assigned during e"ecution phase by dragging

mouse in project planning date and one can compare actual and plan basicdates.


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$n the case of projects with assigned networks network scheduling functionality

automatically derives the dates for activities and WBS elements.

This can be using project planning board where you can select WBS elements

and assigned network activities.

Scheduling parameters determines the scheduling of networks i.e. forward orbackward scheduling #forward scheduling determines earliest dates and backward

scheduling determines latest dates%.

The difference between two dates #earliest and latest dates% are called as &loat

which can be negative or (ero and signifies that the network path is #or activities

from start of network to the end of the end of network% is critical.

The scheduled dates of the WBS elements are the wrap!up dates of the

assigned activities which are displayed as thin time bars in project planning

board.

These scheduled dates can be copied in basic dates of the WBS elements

and e"trapolate them to the superior WBS elements in the project hierarchy.

Settings of scheduling parameters)

$ndicators *network scheduling+ and *adjust basic dates+ set.

Assignment of scheduling type in scheduling parameters.


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Scheduling can be used to derive dates for activities-WBS

elements. etworks are always scheduled forward and backwards.

The scheduling type determines the original direction in which scheduling

takes place. $t can be carried out in two ways) Top!Down and Bottom!/p

scenarios.

The dates schedule in WBS structure can be copied to the basic dates of the

WBS elements for the purpose of e"trapolating them up the project hierarchy.


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Scheduling uses the 1uantity structure of network activities to derive dates in an

automated way.

Single network schedules all activities of the network. $f it is connected to other

networks by relationships their dates are treated like constraints.

$n overall network scheduling the system schedules all networks connected byrelationships.

WBS scheduling schedules all activities which are assigned to selected

WBS elements.

etwork can be scheduled)

$ndividually #etwork Scheduling%

2verall #Scheduling of 2verall network%

WBS scheduling

The activity data activity relationships and date restrictions form the basis for

determining the dates automatically.

$n 3rojects with assigned networks the dates of WBS 4lements and Activities

can be derived by scheduling. 5ere WBS 4lement transfers the date to higher

level


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elements and 4"trapolate it.

$n WBS with assigned networks the basic dates for the WBS element can be

planned in order to determine that certain part of the project has to be

completed within a fi"ed period of time.


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Scheduling parameter) They determine scheduling. These are created for

specific plants and network types.

'. Adjust basic dates) $t determines that after the scheduling run the

scheduled dates are copied to the basic dates of the network header.

,. Scheduling Type) $t determines the type of scheduling being carried out. &or e.g.forward first and then backward scheduling.

0. Start in the past) $t determines how much time back was the start date. $f

its more than the days mentioned scheduling is done from current date.

7. Automatic Scheduling) Scheduling is carried out when saving is carried out.

8. 9og Automatic) $f log is generated it is displayed automatically.

:. Break Spec. Scheduling) The e"act time at which a break is scheduled.

;. Shift 2rder) During scheduling. $t determines how the system deals with partially

completed activities.


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allocating work in Work &orce planning#W&3%


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Scheduling Type) Determines type of scheduling being carried out.

'. Start in the past) $t determines how much time back was the start date. $f

its more than the days mentioned scheduling is done from current date.

,. Scheduling form) $t specifies as in on what basis is the scheduling being

carried out @ WBS element or etwork header.0. Adjust basic dates) $t determines that after the scheduling run the

scheduled dates are copied to the basic dates of the network header.

7. 9og Automatic) $f log is generated it is displayed automatically.

8. Shift 2rder) During scheduling it determines how the system deals with partially

completed activities.

:. Schedule when saving) Scheduling is done on saving.

;. 9atest material dates) based on latest and earliest dates the re1uirements

dates for a material is determined.


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'.

,.

0.

7.

4very time a network is scheduled forward and backward scheduling is

carried out by the system and if activated it determines float and capacity

re1uirements for activities reduction level used to schedule the network

earliest and latest dates for the relationship.

&orward scheduling determines the earliest dates.

Backward scheduling determines the latest

dates.

&loat) $f earliest dates are not same as latest

dates then float occurs.The Scheduling results are)

Scheduled start and finish for the network.

4arliest start and finish dates #earliest dates% and the latest start and finish

dates #latest dates% for activities and earliest and latest dates for relationships.

=eduction levels used to reduce the network and float times #total and free float%

for activities. And capacity re1uirements for activities.


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2ther influencing factors in scheduling)

$nternal processing) the normal Duration maintained in the activity is used by

the system for scheduling internally processed activity.

4"ternal processing) 3lanned delivery time or normal Duration #e"plicitly to

be activated in control key% will be used by system for scheduling e"ternallyprocessed activity.

eneral costs activity) Duration

=elationship) Time interval) &i"ed or as a percentage.

The work centers can be maintained in internally or e"ternally processed activity

and in relationships and work centers contains following informationCs)

'. &ormulas for calculating duration of activities

,. &actory calendar and operating time for each workday.


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A network must and always scheduled forwards and backwards and scheduling type

specifies whether forward scheduling or backward scheduling is carried out first.

&orward scheduling calculates the earliest start and finish dates for all activities and

the scheduled finish date of the network. A start activity is an activity in a network

that does not have a predecessor.

Backward scheduling calculates the latest start and finish dates for an activity #latest

dates% and the scheduled start date of the network. A target activity is an activity in

a network that does not have a successor.

When forward scheduling is performed first the date from which scheduling starts

is the basic start date in the network header. When forward scheduling is

performed after backwards scheduling the start date is calculated from backward

scheduling.

When backward scheduling is performed first the base date from which

scheduling starts is the basic start date in the network header. When backwards

scheduling is performed after forward scheduling the finish date is calculated fromforward scheduling.

Start dates are at the beginning of the day

#>>)>>%. &inish dates are at the end of the day

#,7)>>%.


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Scheduling Assembly Networks:

2verall etwork Scheduling can be performed for a sales order item.

This function schedules the network assigned to the sales order item and all

other networks with relationships to it #total network scheduling%.

The function leads to an update of all items in the sales order with assignmentsto the total network.

Overall Network Scheduling with Selection Options:

This function is used along with selection criteria to specify which network-sub!

network are to be taken into account as part of overall network scheduling.

A prere1uisite for the use of the 2verall network scheduling with selection options

function is that suitable levels are defined beforehand for the project system and

network types and number intervals are assigned to it.


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Activity Element & PR !ates

The system calculates dates for activity elements with reference to the start or

finish dates of the activity. ou maintain a time interval for the start and a time

interval for the finish.

"aterial Re#uirements !ate

The system calculates the re1uirements date for components with reference to the

start or the finish date of the activity. With the network type you can control

whether the earliest or latest start date is used as the re1uirements date in the

network.

$f the re1uirements date is before or after the start date of the activity you can enter

a corresponding lead time offset.

ou can set a manual re1uirements date for components.


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ou can maintain constraints for the start and finish of activities and - +or #offsets

for%+ activity elements.

Eonstraints can be relevant for both the earliest and the latest

dates. ou can maintain constraints for basic and forecast sets of

dates.


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9egend)

4S F earliest start

4& F earliest finish

9S F latest start

9& F latest finish

T& F total float

&& F free float

&loats supply information about time reserves available for individual activities and

one can use floats calculated in scheduling for e"ample in capacity leveling to

shift activities between their earliest and latest dates or to e"tend their duration.

Total float) The amount of time an activity can be shifted from its earliest dates into

the future without affecting the latest dates of its successor. #Total float) F 9S!4S

or 9&!4&%

&ree float) The amount of time an activity can be shifted from its earliest datesinto the future without affecting the earliest dates of its successor. #&ree float F

4S successor @ 4& activity%


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The slide describes the calculation of total floats and free floats)

The total float can be calculated as the difference between the earliest and

latest start of an activity.

$n the above e"ample)

Day : #>)>>% ! Day 8 #>)>>% F ' Day.

The free float of an activity can be calculated as the difference between the

earliest start of the successor and the earliest finish of the activity.

$n the above e"ample)

Day 6 #>)>>% ! Day ; #,7)>>% F ' Day.

,


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=eduction)

=eduction can be used when the time period within which activities are scheduled

is not enough for processing all the activities.

This reduces the scheduled duration of internally!processed activities and for

which reduction strategy has been maintained./p to si" reduction levels can be defined for each reduction strategy. The

percentage reduction re1uired can be entered for each reduction level.

,


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ou can plan project costs in two different ways)

?anual cost planning in the WBS

Eost planning using activities #network costing%

?anual planning in the WBS involves)

'. 2verall planning is a structure!oriented planning and is the most basic form. $n

this kind of cost planning you enter costs for each WBS element which will be

broken down by fiscal year if you want.

,. Eost element planning is a detailed planning of primary costs and activity inputs

which is cost element based and period based.

0. $n /nit costing you use a profile to enter 1uantities like internal activities

materials variable items and e"ternal services etc. for each WBS element.

/nit costing is cost element based.

7. &rom 7.:E release you can use 4asy Eost 3lanning which offers you an easy!

to!use tool for planning costs by cost element in a 1uantity structure. And further

one can use 4"ecution Services to enter actual data and commitment for the

related planned costs.

The plan costs can be determined manually as mentioned above and also by creating

,


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activities for WBS elements and using these activities to plan costs.

When using networks and activities planned costs are automatically

calculated based on the resource re1uirements identified for activities and

operations.

=esources provide a 1uantity structure that can be dynamically valued by the system.

This method has the following advantages)

a. resulting plan can be copied to new projects

b. cost planning is shifted automatically along with the activities if parts of the

project are shifted.

c. 3lanning using network activities is by cost element and period.


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ou can plan project costs simply by creating activities for WBS elements #for e"ample in the

project planning board or structure planning transactions%.

3lanning in this case is by period and cost element.

This process has significant advantages over manual planning of primary costs or activity

inputs)

Eost planning can be postponed easily using a work package.

ou can copy this type of cost planning to new projects.

Eost planning is integrated with time scheduling and resource

planning.

,


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When you plan dates and resources in network activities the system determines

the corresponding planned costs automatically.

3lanned costs are determined for the following

objects) Activity inputs for internally!processed

activities

3rimary costs for e"ternally!processed activities and services

3rimary costs for general costs activities

3rimary costs for material components

Activity elements are costed as if they were activities.

System automatically calculates the planned cost based on planned dates and resources in

network activities.

Eost elements should be identified by cost relevant items. $dentification in internal activities

e"ternal activities is as)

$nternal activities- services) Determination is by means of secondary cost element assigned in

the network type master data

,


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4"ternal activities-services )'% on stock!$t is identified by -l account ,% Stock! $t is

determined by automatic account determination

Eost planning is integrated with time scheduling and resource planning


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$nternally processed activities are used for the work which needs to be e"ecuted in own

company and assist in planning work.

$n the activity you need to maintain the work data and based on same system calculate costs

for these activities.

Work is an input for machine or person to e"ecute the activity. And work center is place

where the work is carried out and work output is provided.

Work centers contains data such as scheduling and capacity which assists in costing

scheduling and capacity planning of activities.

The costs can be distributed over the network duration for internally processed activities Gcost activities and controlled via distribution key.

The distribution key is determined from the activity or from work center #only in internally!

processed activities% if not maintained in activity. $f distribution key is not maintained or

determined costs are distributed evenly #over the earliest dates% in the activity.

4"ample) An activity spread across periods >6 and '> with a total work time of ,8> hours.

The dates and the distribution key used for the activity assign '>> hours to period >6 and

'8>

,


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hours to period '>. $f the rate is '>> 4uros per hour for period >6 and 4uros per

hour for period '> and valuation per period has been stipulated the costs are

'>>>> 4uros for period >6 and ',>>> 4uros for period '>.

During e"ecution phase when you confirm the activities you consume the capacity

re1uired by the activity and enter the actual date and costs.

ou can distribute work among the employees by assigning persons to the activities

from a project team which can be set up from 5= organi(ational units persons or

positions.


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When procuring services e"ternally #outsourcing% you can create services or externally-

processed activities.

4"ample) ou commission a freelance engineer to design and build a machine.

When creating a e"ternally processed activity or service activity a purchase re1uisition is

created based on the settings and further processed in purchasing and the data can be

accessed from purchasing for e"ternal processing e.g. purchasing info record which

contains data for the pricing and delivery times.

E$ternally%processed activities give rise to planned costs e#uivalent to the prices romthe purchasing ino record or the price in the activity' he valuation variant or the

network costing variant determines which price is used or the valuation' (hen the

purchase re#uisition is activated and converted to a purchase order) the activity is

also shown as a purchase re#uisition commitment or purchase order commitment'

he account assignment category in the purchase order determines whether the

goods*invoice receipt is valued % that is) whether it gives rise to actual costs' + the

goods receipt is valuated) actual costs are posted to the activity and the commitment

is reduced by the amount o the purchase order' his means that the invoice receipt

,


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may correct the actual costs'

Service activities are maintained or the purchase o services'

,reating such an activity establishes the link to "" Services -""%SR./' 0nlike

e$ternally%processed activities) service activities contain a service

speciication containing planned activities and value limits or unplanned

activities'

his service speciication is copied to the purchase order where Purchasing

can then modiy it' Service activities also give rise to planned costs or

purchase re#uisition*order commitments' +nstead o goods receipts) services

are later entered and accepted'

The service activities also initiates the purchasing process but contain the value limits

for the unplanned services and hierarchy of planned services to be procured. The

goods receipt process in Services activities involves following steps) service entry

and service acceptance.

The e"ternally processed activity and service activities are differentiated by Eontrol

keys.


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We can assign a work center and planned work to an e"ternally processed activity.

This allows to carry out capacity planning for vendors

Ehanges in network dates-1uantity will trigger workflow for a 32 change)

$f changes are made in the network to dates or 1uantities for material

components or e"ternal activities for which 32 has already been created .system

triggers a workflow automatically. The only prere1uisite is that this workflow has

been activated in the parameters for the network type table

The person responsible in purchasing will receive an information on the re1uired

changes.

$f only 3= is created changes in the network to dates-1uantities will update the

change in 3= automatically

,


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The $nternal processed activity e"ternal processed activity and service activities are

differentiated by Eontrol keys.

We can generate 3urchase re1uisition #3=% for e"ternally processed activities

from 3roject System. The 3= is converted to a 3urchase order #32% in

purchasing. A goods receipt and invoice receipt can then be posted for thepurchase order

We can assign a work center and planned work to an e"ternally processed activity.

This allows to carry out capacity planning for vendors

,


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ou can use general costs activities to plan all other costs that cannot be mapped via

internally!processed activities or e"ternally!processed-service activities.

$n the general costs activity you can enter a description the amount and currency a cost

element a duration and a distribution key for distributing costs.

The costs are distributed using the network duration for general costs activities.

Distribution is controlled by means of the distribution key for the activity. $f no distribution

key is maintained the costs are distributed evenly over the earliest dates in the activity.

ou can create a unit cost plan for the general costs activity.

This means that detailed costing is possible even at an early stage of the project

#for e"ample for sales pricing%.

The activities which cannot be tracked though internal-e"ternat activities-services can be

tracked through general cost activities to plan costs

4g travel e"pense for meeting.enral cost activity is assigned to cost object

Eosts are distributed as per scheduled duration which is controlled by distribution key

,


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.There are cases where distributionkey has not been maintainedin those cases

even distribution of cost is done based on the earliest dates in the activity

Detaled costing can be done like during sales pricing phase that is at beggining

phase of project


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ou can create invoicing plans directly for network activities #e"ternal service or general

costs% or components procured e"ternally.

This means that it is possible to plan costs and outgoing payments on the basis of dates

entered in the invoicing plan. Eosts are not simply distributed but are calculated precisely

at the times specified in the invoicing plan.

ou can create an invoicing plan by copying a reference invoicing plan.

The reference invoicing plan fi"es cost and payment times relative to a start date.

Alternatively you can copy billing milestones as dates to the invoicing plan of the activity. $f

you copy the milestones rather than creating them manually they can be postponed

along with the dates in the invoicing plan if the activities are rescheduled.

ou cannot create invoicing plans in combination with unit costings #for general costs

activities or material components%.

0


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2n the basis of days periods or fiscal years one can plan payment flows i.e. revenues

and e"penditure.

$n WBS elements manual planning of revenues and e"penditure is by period. At

commitment item level #3roject Eash ?anagement master data% planning takes place.

The 1uantity structure in the network and the billing plans in the WBS or SD document

are valuated in the automatic planning of financial data.

Automatic planning will be done by day. 3lanned line items will be written.

Based on assignment to -9 accounts commitment items will be determined. /nlike

revenue and costs calculation payment date calculation takes account of the

customer and vendor payment terms respectively.

ote) The credit side payment plan of the network is determined using theasynchronous network costing only.

The dates and the payment terms are used in the 3S billing plan for planning incoming

payments. Sales order items will also be used in assigning the billing plan data and

payment terms#of the dates or sales order item%.The delivery date including the

payment conditions is used if there is no billing plan for the sales order item.

0


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$n the case of activities processed e"ternally and e"ternally procured components

invoicing plan including payment conditions are used @ or the delivery dates including

payment conditions are used where there is no invoicing plan

$f an invoicing plan has been maintained payment data is only planned for

general costs activities


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3lanned revenues and incoming payments is relevant in billing plan.

Dates for Down payments are relevant only for payments #not revenues%.

?ilestone billing dates appear as planned incoming payments and planned revenues. Two

things are important for dates and amounts i.e. payment terms and payment target

#e"ample) payment ' week after invoice issue with ,H discount%

2nce the project is e"ecuted invoice billing will be generated and appear in the project as

actual revenues and customer payment obligations. With respect to dawn payment date

down payment re1uests will be generated by the billing program which are recorded inthe payment data for the project.

Billing plan can be created for a sales order a sales order item or for a billing element in the

WBS.

3lanned costs and planned outgoing payments are relevant during the $nvoicing plan.

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$nvoicing planes can be created for e"ternally!processed activities e"ternally!

procured material components service activities and cost activities.


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Depending on the transaction you can calculate costs for one network #e"ample) network

maintenance% or a range of networks #e"ample) all networks for selected WBS elements

in structure planning or the project planning board%.

ou can calculate network costs asynchronously. The advantage of this is that you can select

and cost broader ranges #e"ample) A to I% and carry out costing in the background.

0


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Eosting variant controls calculation of planned and actual cost. Eosting variant

is assigned to order type. etworks are of order category ,>.

The valuation procedure is defined by valuation variant which is a component of

costing variant. Based on valuation variant prices are determined by the system to

value componenets material activity type processes subcontracting and e"ternal

activities. Jaluation variant searches for prices in se1uence from the price sources.

3rice entered first is selected first

?aterials)3rice is selected either from purchasing date or material master record

Activity type G 3rocesses) 3rice is selected either from activity based costing or

cost center accounting

4"ternallly processed activity)price is selected either from the activity or from

purchasing information record

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When customi(ing the order value update you stipulate for each order category and

type whether the order or network is appended ! that is whether its planned costs are

added to the project cost plan for assigned WBS elements.

There are two tables for the order type #network type%. The first is defined per order type

the second #parameters for network% per order type and plant.

A third important table is the network profile containing default values for the network and

its activities.

The costing variants for plan and actual costs are determined at network header level.

The costing sheet and overhead key are determined at activity level. They control processcost accounting or application of overhead. Depending on the creation process these

keys are inherited from the network header or the assigned WBS element.

0


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The costing variant contains the basic control information needed to carry out

costing. The valuation variant contains all the information which controls the

valuation of)

?aterial components

$nternal activities

4"ternal activities

This information also

controls how

overheads areapplied.

Jaluation can be

determined plant by plant.

The KBy periodK indicator enables you to calculate costs for internally!processed

activities period by period.

The costing type contains further detailed information for controlling costing.

0


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ou can classify the resources in broadly , categories from the networks point of

view) $nternal and e"ternal activities.

$nternally processed activities) These activities - work are carried out by

machines and - or persons of own company. ou can schedule the activities as

per re1uirement distribute the work among persons.

4"ternally processed activities) these activities are e"ecuted - processed by other

companies. These are carried out by purchasing department. The service

activities are also procured e"ternally however different from e"ternally

processed activity that you need to define service specification and the limit for

the unplanned activities which is provided by the service provider.

0


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1usiness scenario

To e"ecute a project materials are re1uired

which can be procured e"ternally #purchasing% or

manufactured in own company #3roduction%. These

materials are managed in project!specific stock.

As the project controller you are interested in)

The values in the project at the different stages of purchasing or production

#project controlling%

Stocks of raw materials semi!finished and finished products used for your project

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#stock controlling%

?aterials provide linkage between many other SA3 functional modules like

?aterials ?anagement #3urchasing and $nventory ?anagement% Sales and

Distribution plant maintenance and 3roduction 3lanning and Eontrol.

The materials are assigned to activities which helps in material re1uirement and

planning in a project.

The product which is manufactured in your project is in turn made up ofa variety of material components.

The first step is to plan the procurement and consumption of the requiredcomponents in your project.

Projects are linked to Materials management, Sales and istri!ution and

Production Planning via materials.


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$n order to plan the material re1uirements of a project materials can be assigned to

activities. 2n the basis of stock the materials are classified as stock or non!stock items.

The item category stock items #9% are for such materials which are stored in stock e.g. project

stock sales order stock or warehouse stock and reservations can be created for such

materials. Based on the 1uantity re1uired in the project the re1uirement planning can be

initiated. The procurement element for e"ternal procurement is a purchase re1uisition and for

re1uirement planning is planned order.

&or productions of assembled material material B2? is e"ploded and the

re1uirement planning is e"ecuted for all the materials mentioned in B2?.

on!stock items #% are for materials which are to be procured directly for the network which

is not using ?=3 #i.e. not procured via project stock sales order stock or warehouse stock%.

&or non!stock items 3urchase re1uisitions are created which are passed on directly to

3urchasing.

0


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The item category Kstock itemK #9% is used for materials kept in stock. When you save

your data the system creates a reservation for the re1uired material. A purchase

re1uisition ! which is passed on to 3urchasing ! can also be created for components

procured e"ternally.

The main function of material re1uirements planning is to ensure material availability

#in other words to procure the re1uired 1uantities in time ! both in!house and for sales

and distribution%. This includes monitoring stocks and above all creating procurement

proposals for purchasing and production.

$ndependent re1uirements ! that is re1uirements for finished products assemblies or raw

materials ! trigger re1uirements planning. $n order to cover the re1uirements order1uantities and dates have to be determined and the corresponding procurement elements

scheduled. The procurement element for re1uirements planning is a planned order and

for e"ternal procurement a purchase re1uisition. &urthermore the dependent

re1uirements for materials produced in!house #in other words the 1uantity of components

re1uired to manufacture a finished product or assembly% are determined by e"ploding the

bill of material. 3lanned orders are created at each B2? level to cover re1uirements

when a material shortage occurs.

7


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2nce 1uantities and dates have been planned in re1uirements planning these

planned procurement elements are converted to Ke"actK procurement elements) for

production this is the production order and for e"ternal procurement the purchase

order. When the order or purchase order is being processed the production order

is delivered or a goods receipt is posted to stock #plant stock or project-sales order

stock%.

The goods issue that takes place as a result of this activity reduces the stock

and posts actual costs to the KconsumingK network activity.

$tem Eategory 9 #stock item% is used for components kept in stock .

4nsuring material availability is the main function of ?=3 which includes monitoring

stocks and creating procurement proposals for purchasing and production .

=e1uirement for finished products saleable assemblies and spare parts

trigger re1uirement planning.

2rder 1uantities and dates have to be determined in order to cover the

re1uirements .

&or re1uirement planning the procurement element is the planned order and

for e"ternal procurement it is purchase re1uisition .

3lanned procurement elements are converted into e"act procurement elements

once the 1uantities and dates are planned.

$t is 3roduction order for production and purchase order for e"ternal procurement.


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The item category Knon!stock itemK #% is used for components that are not procured

by way of warehouse stock or project-sales order stock but are procured directly by a

network activity instead.

3urchase re1uisitions are created for these components. These re1uisitions are passed

on directly to 3urchasing. When the goods are received they are not placed into stock

but posted to the activity.

on!stock items cannot be managed as project stock or sales order stock.

on Stock $tem #% )These are the items which are procured directly by network activity and not through

warehouse stock project stock or sale order stock .

3urchase re1uisitions are created first and then passed directly to purchasing.

When the goods are received they are directly posted to activity .

on stock items cannot be managed as project stock or sale order stock .

There are two procurement types for direct procurement with item category )

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3urchase =e1uisition for the network

Third party re1uisition for the

network


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Ehanges in network dates-1uantity will trigger workflow for a 32 change)

$f changes are made in the network to dates or 1uantities for material

components or e"ternal activities for which 32 has already been created .system

triggers a workflow automatically. The only prere1uisite is that this workflow has

been activated in the parameters for the network type table

The person responsible in purchasing will receive an information on the re1uired

changes.

$f only 3= is created changes in the network to dates-1uantities will update the

change in 3= automatically

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"or instance # $n this case the way in which the material can !e procureddepends on !oth item category and material attri!utes.

The material master stores the information of

the material attri!utes.-$t contains information like %

-&hether the material is purchased orinternally manufactured.

-&hether the requirements are individualor collective or !oth

-

&hether the material can !e procured inadvance.

The control data of the project definitiondetermines whether stocks can !e !uilt or not

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The account assignment category of the salesorder determines whether sales order can !e!uilt up

' setting within the ()M can !e specified todetermine whether the components can !eprocured independently of the material mastersettings.


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The components can !e assigned to theactivity with the help of the procurementindicator.

The Procurement indicator contains thedefault values for determining the stock andthe procurement type.

' procurement indicator can !e specified inthe network profile. This gets defaulted in thecomponent assignment.

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The B2? transfer functionality in SA3 3S helps you to assign the material from B2? to

the network activities based on the reference point field which is assigned to the material

and network activities.

WBS B2?s can be assigned to 3roject B2?s using the B2? Transfer transaction .

The corresponding selection parameters must be chosen to perform the same.

Advantage of B2? transfer functionality is that the changes in the B2? during the course

of the project will change in the activities #you need to run B2?!transfer again every time

you make changes in B2?%.

ou can also manually assign materials to network activities without reference point fields.

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*eference point % This is the logical link !etween a ()M component and anetwork activity. $t ensures that the automatic assignment of the materialcomponent happens correctly.

&hile the assignments !y themselves are project specific, they can !e madesimultaneously for a large num!er of networks in the project.

$ndividual components, individual ()M assem!lies or a multi level ()M can!e assigned.

These assignments can happen manually without reference points as well.

3rocedure &or B2? Transfer)

"ield in the ()M and the network activity which needs to !e used asthe reference point needs to !e specified.

These fields must have the same structure in !oth the o!jects. "orinstance % +'*, eight digits .

Possi!le entries for the reference point can !e defined incustomi-ing.

*eference points in the ()M +omponents and the network activitiesmust !e defined.

The ()M PS $nterface must !e started after changing the ()M/

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()M +omponents are assigned to activities in this process.

Purchase requisitions and reservations are created for the assignedcomponents if *eservation0Purchase *eq. indicator is activated.


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A material that you allocate to activities in a network can be kept in various stocks.Depending on your project you can access different types of stock for materials

planning)

Sales order stock and project stock are important for controlling purposes #for monitoring

the stock value in a sales order or project% and from an ?=3 point of view #the stocks

are reserved for the sales order item or WBS element other stock elements cannot

access them%.

The various stock types are managed for each material component using the account

assignment category. ou define the account assignment category when you assign the

material to the network activity #popup in manual assignment strategies in B2?!3S

interface and standard network%.

The possible account assignment categories depend on the assignment of the network

activity to a stock object #WBS element or sales order item% on the item category for

the assignment #direct procurement for non!stock items% on the material master which

can e"clude collective or specialist stock management.

As of =elease 7.8A you can use ?=3 elements #grouping% to manage a joint project

stock for an entire project or for several projects #this is a rougher method than managing

stock per individual WBS element%.

ou maintain the account assignment categories possible for network purchase

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re1uisitions in customi(ing.


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$nstead of managing the material either in a plant stock or for each individual WBS

element and having no control at all over procurement or being fully responsible we

can go for re1uirement grouping. Through re1uirement grouping we can determine

the degree of control ourselves.

3rere1uisites for using re1uirement grouping )

Jaluated group stock

rouping WBS elements

?=3 roups that allow re1uirement grouping

Assigned components should have periodic lot si(es.

The most basic scenario involves grouping the re1uirement of all the WBS

elements in the project into one WBS element.

2r we can create projects which are only meant for grouping re1uirement of otherprojects.

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Jaluated project stock must be allowed in the project definition control data.

With the e"ception of automatic re1uirement grouping ?=3 element indicator

must be set for WBS elements.

?=3 groups involved in re1uirement grouping must be determined in customi(ing

for the WBS.

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$t is common in engineering projects for critical components with long and unreliable

delivery times to be purchased at an early stage in the project much before the

project activities in which the components will be used are specified. Advance

procurement process is used in such situations.

Advance procurement can only be used when you are using sales order or project

stock .

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Order ,ategories and order types

Documents are used to enter business transactions in the =-0 System. 2rders are

one type of business transaction. 2rders are determined by their order category.

The network is an order category. 2rder types are prescribed by the system for the

relevant applications.

ou can define your own order types within an order category. The order type

describes how the order is controlled.

Eustomi(ing includes two tables one for the order type and another for the

order type-plant combination.

The order category is used to control)

'. umber assignment

,. Default value settings

0. /ser!specific status management

7. /ser!specific field control$n the case of networks order types-plants can be header!assigned or activity!

assigned. ormally activity!assigned networks are used where costs are gathered

in each activity. 5eader!assigned networks are only significant for the assignment of

networks to sales orders #without WBS%.

Pro2ect 3 Assignment o orders

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ou can assign various SA3 orders to a project e"amples include internal orders

production orders and plant maintenance orders. ou can then use the project

hierarchy reports to evaluate these assigned orders with the WBS element.

4ach order is a cost object with its own costing parameters such as planned costingvariant actual costing variant and overhead sheet. The planned costs of assigned

orders are used to determine the planned costs of the project.

ou assign orders to the project either by assigning a WBS element to the order

header or by assigning the order to a network and activity as a subnetwork. $f the

assignment is re1uired only for cost control and analysis you need to assign order to

the relevant WBS element. $f the assignment is re1uired both for scheduling and

cost control you need to assign the order as a subnetwork. The WBS element is

derived from the network activity. ote that production orders cannot be assigned as

subnetworks.

Documents are used to enter business transactions in the =-0

System. 2rders are one type of business transaction.

2rders are determined by their order category.

The network is an order category. 2rder types are prescribed by the system for the

relevant applications.

ou can define your own order types within an order category. The order type

describes how the order is controlled.

Eustomi(ing includes two tables one for the order type and another for the

order type-plant combination.

The order type is used to control)

umber assignment

Default value settings

/ser!specific status management /ser!

specific field control

3lant and order type parameters are used to control)

$f the network is activity! or header!assigned

3lanned and actual costing variants

The settlement rule strategy


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ou can use the KappendedK indicator to specify per order category whether an

order is appended ! that is whether the planned values for the order are included

in the planned value of the corresponding WBS element)

'. $f the KappendedK indicator is set the order planned value increases the

WBS element planned value. The information system shows the total

as the project plan. When cost planning is taken over as the budget

the values from appended orders also contribute to the budget.

,. $f the KappendedK indicator is not set the order planned value is not

added to the WBS planned value. $n budgeting the plan total for such

orders must be added manually so that these orders can use funds

later.

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ou can use the KappendedK indicator to specify per order category whether an

order is appended ! that is whether the planned values for the order are included

in the planned value of the corresponding WBS element)

2nce released all orders are apportioned ! this means that their plan commitment

and actual values are funds assignments against the funds in the project. The

order value table contains an indicator which you can use to make orders

KapportionedK earlier at the KcreatedK stage.

ou can set appended and apportioned indicator based on the order categoryorder

type and controlling area

An e"ception to apportionment at release is in the case of networks for preliminary

planning.$n 3roject System customi(ingyou can specify network types to be used

for preliminary planning.3reliminary planning networks are never apportioned.Their

related plan values do no increase the assigned value for the relevant WBSelement

$n the case of networks #order category ,>% you can use the network type

parameters to determine whether the network is)

5eader!assigned or activity!assigned ! that is whether costs are managed in

the network activities or collected in the header

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A preliminary planning network whose plan commitment and actual values

are not apportioned ! meaning that they do not appear as assigned values

in the project.


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4eader%Assigned Networks

$n a 5eader!assigned networks all the costs #activity and material% are assigned at

network header level

After assignment of network header to a WBS element All costs are transferred to

WBS element. Assignment of activities to WBS elements is only to summari(e thedates

We you have to use header!assigned networks to assign networks to sales order in

case sales order are not assigned to projects as no assignments can be made to a

sales order item in the network activity.

Activity%Assigned Networks

Eosts are collected on activities in case activites are used as account assigned

objects.3lant-network type parameters deines the condition if the network header

or network activities are to be used as cost objects.

Activity! assigned networks are usually used when activities are assigned to various

WBS elements.5ere every activity in the network is an account assignment object.

Which implies we can analy(e planned costs commitments and actual costs

for each activity.

The costs are aggregated and displayed for the WBS elements to which

the activities are assigned.

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Activity account assignment is a special feature of networks. All other order types are

header!assigned. Activity account assignment is controlled via the appropriate

indicator in the table K3arameters for network typeK.

5eader assigned networks should be used when networks are assigned to salesorders without WBS.5eader assigned networks can also be used when the

enitre network is assigned to a single WBS element


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SD document item assignment is controlled via the account assignment category.

The account assignment category is controlled via SD re1uirements type

determination.

$mportant factors that affect account assignment are the strategy group the ?=3

type and item category group from the material master of the product as well as

the document type of the SD document.

The system defaults the item category when you create an order. ou can accept

the default or overwrite it. 3ermitted item categories are defined in Eustomi(ing.

The permitted planning strategies are assigned to the material using the planning

strategy group. This is necessary so that you can find the correct re1uirements type

in independent re1uirements management and sales order management.

The default re1uirements type is the main strategy in the planning strategy group.

$f no planning strategy group is defined in the material master the system uses the

item category group #sales and distribution screen in the material master% and if

necessary the ?=3 characteristic to search for the re1uirements type for the salesorder.

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The account assignment category determines the E2 object to which document

1uantities and values are assigned. ou use it to determine the following)

/sing the special stock indicator #SS$ above% that goods movements in 9ogistics use

plant stock sales order stock or project stock.

/sing the consumption posting indicator #Eons. above% the E2 object to which the

values of a material document are assigned.

Settings)

& F Eollective stock consumption posting to the consumer #order activity%

The account assignment category is important for procuring components directly.

4 F Luantities and values managed in the sales order item

This account assignment category is important for make!to!order production without

WBS.

D F Luantities managed using sales order item values managed in projects

This account assignment category is important for non!valuated project

stock with WBS and sales order item

L F Luantities and values managed in projects

This account assignment category is important for project stock

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F 3lant stock values managed using project

This account assignment category is important for sales order items sold

from plant stock with

value posting to the project. $t differs from account assignment category K&K in

the field control

of the account assignment block.


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Activity!Based Eosting offers a facility for allocating and distributing the overhead to its cause.

Activity!Based Eosting provides useful information on)

2verheads reduction by process improvement

3rofitability increase by highlighting unprofitable products or customers

Activity!Based Eosting is advantageous for having)

M Transparent overheadsM 3arallel 1uantity and value flows

M 3recise assignment of internal activities to consumer

*3eanut butter effectK can be avoided through even distribution of overheads among all

the cost drivers.

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$n Activity!Based Eosting processes are the controlling objects. 3rices can be either

maintained manually or using activity and cost input planning in the case of cost

centers and activity types. Through activity based costing processes are debited to

cost objects or profitability segments.


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Templates are created in NEustomi(ingO and determined by controlling area costing sheetoverhead key and template environment #for networks @ >>7 for WBS @ >>8% for the

function. $n the 3roject System templates can be assigned to WBS elements networks

#header assigned% or network activities. 3rocess costs are allocated to cost objects or

profitability segments by assigning a process template. 3rocess costs are calculated based

on the templates selected for the project.

After template selection the calculation program

determines the following

3rocesses in the template relevant for the

project

M Luantity of each process consumed by

the:


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project

Ealculated value to be added to the

project at the start end or continuously

The price for the process and the allocation cost element are determined by

entering one process per line in the process template. ?ulti!level processes can be

mapped by referencing another process template in the working template.

The 1uantity used by the cost object is determined using the cost driver. This enables

the allocation of the relevant values to all the levels in the process hierarchy as far

as cost objects or profitability segments.

Eost drivers can originate from many different sources in the =-0 System or e"ternal

systems. 4"amples ) weight #material master% number of components activities of a

particular category work center #network% number of sales orders for market

segment #9$S% etc. The 1uantities determined by the cost driver are multiplied by the

price of the process. The resulting value is charged to the cost object #in the

e"ample the WBS or network-activity% and the process is credited.


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Actual prices for activity types and business processes are calculated in 2verhead

cost controlling at the end of the period.

Actual prices F Actual costs - Luantities consumed

The possibility of revaluation at actual prices and its specification for each

activity type are controlled in Eustomi(ing in the parameters for the actual

version depending on the fiscal year.

The difference between the actual price and the originally allocated price is

charged to the cost objects.

=evaluation at actual prices for activities and business processes can be done

in the 3roject System and in the Eost 2bject Eontrolling.

=evaluation at actual prices using an activity type is illustrated in the e"ample given

in the slide

:


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2verheads calculation is used to allocate overhead costs to cost objects such as activities

and WBS elements. Ealculations are done based on the Eosting sheet entered in

the cost object and the overhead key entered on the WBS elementnetwork header or network activity. 2verheads can be calculated for

planned commitment and actual values. 2verhead calculations are

done using the 1uantity based or percentage allocation rates.

The following postings get generated through overheads allocation)

Debits to cost object #WBS element etwork header oretwork activity %

Eredits to cost center # overhead order or process %

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2verhead costs are updated using the secondary cost elements

in the costing sheet credit rows and these can be simulated also.


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Eosting sheet is derived by means of the costing variant from the K3arameters for

etwork TypeK table in the case of networks. The costing sheet and the overhead key

can be changed in the network header.

The costing sheets to be used in the activities are made a default through this.

&or WBS elements the costing sheet is derived directly from the project profile. $n

the case of 4asy Eost 3lanning and the unit costing for WBS elements the cost

planning draws on a costing sheet for a costing variant which is assigned to the

project profile through the planning profile.

2verhead keys for activities are inherited from their respective WBS elements.

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2verheads are calculated using a costing sheet.

The overhead surcharge can either be a percentage if it is value driven or an absolute value

of measure if it is 1uantity driven. The overhead is calculated against a base which is defined

by the cost elements. Eost elements or cost element areas are collected in base lines.

&actors such as Eontrolling area company code plant overhead group network type time

period and plan versus actual determine the overhead rate applied. 2verhead key assigned

to the cost object decides the determination of overhead group in customi(ing. Thus a single

costing sheet with fle"ible rates can be made use of different organi(ational units or

individual activities.

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As of =elease 7.:E the SA3 System offers an easy!to!use tool for planning costs in

WBS elements. The tool is called K4asy Eost 3lanningK.

4asy Eost 3lanning for projects can be accessed from the 3roject Builder. ou can choose

a WBS element from the structure tree and then you create costing items for the selected

WBS element.

$n 4asy Eost 3lanning cost planning is cost element based.

ou can use planning templates to enter costing items in which characteristics are valued.

The e"ample above shows work in hours being valued at '>>.

The characteristic values which are linked from the planning template are 1uantities

values or actions from the costing items. $n the e"ample above the link is to the1uantity for an internal activity.

When you accept them the costing items appear in the structure tree beneath the

relevant WBS element.

As an easy way to create a project preliminary costing 4asy Eost 3lanning can be very

useful.

The costs so planned are then broken down ! for e"ample using a 1uantity structure of

:


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networks-activities.

4asy Eost 3lanning can also be used to enter plan data for later project e"ecution.

5aving done this you can later use 4"ecution Services to enter commitment and

actual data relating to the planned costs. /se customi(ing to stipulate in which

plan version values planned in 4asy Eost 3lanning are stored.

As part of the network costing the system automatically determines planned

costs when you plan dates and resources for the following objects)

a. &or internally processed activities) activity inputs

b. &or e"ternally processed activities G service activities) 3rimary costs

c. &or genreal costs activities) primary costs

d. ?aterial componenets) primeary costs.

ou can use planning templates to create 1uantity structures for 4asy Eost

3lanning.ou can enter 1uantities and prices in the template or regulate activation using

formulas or conditions.

ou can use characteristics assigned to the planning template as variables for the

formulas-conditions. The characteristics are valued by the user when the

planning templates are copied into 4asy Eost 3lanning.


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/nit costing is done to calculate cost plan per WBS element. 5ere we use

planned 1uantities instead of cost.

$t is not period dependent

At cost element level plan values are displayed

$nput information related to sources of supply 1uantities and prices mark the useof unit costing to generate cost plan per WBS element

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Structure Oriented Planning:

Simplest type of planning is structure based planning. 3lan values are displayed

in hierarchy

The total cost planned is aggregate

$t is neither by cost element nor is period specific

Jarious views are used to display the different values in structure!oriented

planning

3lanned total Jiew!this shows total aggregate at superior WBS element #9evel

' WBS element%

The distributable or distributed view!This view is used to check distribution of

budget among child WBS element

Eumulative or remainder view!This view is used to check distribution of budget

across years

2rder-network view!This displays the planned cost od appended orders-networksassigned to WBS element

Cost Element Planning/Activity Input Planning:

When more detailed information is re1uired cost element planning is done. $t

is independent of project scheduling

?anual reschedule of cost planning becomes mandatory if a project or

individual

:


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package schedule is changed

This planning is adopted if precise information is available as it becomes sure not

to reschedule-postpone the project


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The plan profile is used to control overall cost-revenue planning. $t contains costing variants

for the unit costing or 4asy Eost 3lanning.

$t also contains indicators for updating revenue plan values via customer 1uotations or sales

orders.

ou assign the plan profile to the project by way of the project profile. ou can change it in the

project definition.

Eosts and revenues can be planned in different E2 plan versions.

ou either specify the plan version during planning or if you are using 4asy Eost 3lanning

you assign it to the controlling area.

3lanning layouts are used to plan costs revenues payments and statistical key figures.

ou can use the =eport 3ainter to create the layouts and can assign them to planner profiles.

/sers can choose planner profiles and assign them to the user master record.

3lanning profile) /se transaction 23SB

The 3lanning profile contains the settings related to planning. $t control overall

cost-revenue planning. 3lanning profile is assigned to project using project profile. Eosting

variant are

:


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relevant if we are using unit costing and easy cost planning

E2 plan version is re1uired to be specified if we are using easy cost planning.

3lanner profile and planning layouts are specific to use of detailing planning

using *cost element-activity input+


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3lanning profile is contains the settings for overall planning detailed planning

and unit costing

Details for each field can be checked using

&' $mportant field details are as)

Total Jalue) Defines overall planning without any reference to fiscal year

Annual 3lanning) Defines overall planning with reference to fiscal year

Bottom up 3lanning) 2verall planning values are e"trapolated after saving

4"change rate type) Determines which e"change rate is to be used for currency

conversion of overall values

;


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Transaction 2PPT to edit costing and valuation variant

Eosting variant is mostly used for unit costing easy cost planning and also used for

costing networks. The field costing type determines for which WBS element

#costing object% costing is done

Jaluation variant determines the prices and rates. $n the above mentioned slidesystem will first check for *3lanned price '+ if it fails system will check for *standard

price+ and again if it fails it will check for *moving average price+ from material

master. $f system now fails it will trigger an error message during cost determination

;


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+nternally%processed activities:

$f no distribution key or work center is maintained in the activity the costs are distributed

evenly over the earliest dates in the activity. Jaluation is at the rate in the valuation variant.

Depending on the strategy being used the system can determine the most current date.

valuation is determined by the rate maintained in the valuation variant. Based on the

strategy adopted system determines the latest date. $f no work center-distribution key is

maintained the system distributes the cost evenly over the earliest dates.

,osts activity:

Ease ')$nvoice plan maintained)the values in periods are as per the values mentioned

in invoicing plan

Ease ,)$nvoicing plan not maintained and distribution key maintained)The activity value

is

;


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distributed to the periods based on the distribution key maintained in the activity

Ease 0)$nvoicing plan not maintained and distribution key not maintained)The

costs are distributed evenly over the earliest dates in the activity

$f an invoicing plan has been maintained the values in the periods are set

as specified in the invoicing plan.

2therwise the activity value is distributed to the periods using the distribution key in

the activity. $f no distribution key is maintained in the activity the costs are distributed

evenly over the earliest dates in the activity.

Service activities or e$ternally%processed activities:

Ease ')$nvoice plan maintained)the values in periods are as per the

values mentioned in invoicing plan

Ease ,)$nvoicing plan not maintained)The activity value is set in the period of the

latest activity start date.Also the system determines the price from the purchasing info

record or the activity value.

$nvoicing plan has priority for the values

$f an invoicing plan has been maintained the values in the periods are set

as specified in the invoicing plan.

2therwise the activity value is set in the period of the latest activity start

date.

The invoicing plan has priority for the values. $f no invoicing plan has been

maintained the system determines the price from the purchasing info record or

the activity value.

"aterial components:

Ease ')$nvoice plan maintained)the periods and in some casesvalues are

taken from invoicing plan

Ease ,)$nvoicing plan not maintained)The system determines the price from the

purchasing info record or the price is taken from material master as per

valuation variant.5ere material re1uirement date determines the period

$f an invoicing plan has been maintained the periods and in some cases the

values are taken from the invoicing plan. $f no invoicing plan has been maintained

the values are taken from the purchasing info record or the price is taken from the


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material master per the valuation variant. $n this case the period is that from

the material re1uirements date.


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The customer accepts the 1uotation. A sales order is created in the system where

appropriate using the 1uotation as a template. The activities listed in the 1uotation

are entered in the sales order as sales order items.

The items are assigned to the project. They are used for revenue planning and for

posting revenues to the project by means of milestone billing.

Two companies are responsible for e"ecuting the project ! $D4S A and $D4S /P.

$D4S /P creates a sales order for $D4S A and assigns the document item to the

billing element T!'>>QQ.'.,.

9ater on $D4S /P bills its services to $D4S A on a resource!related basis.

A billing re1uest is created in the system via resource!related billing. This is billed and

results in revenues for $D4S /P.

;


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$n SA3 where project is a controlling object)

Sales order created and after structuring of project sales order will account assigned toWBS. Then revenue planned in sales order.

2nce Work completed in project actual cost captured in WBS and &inal product will

be delivered to Elient.

Billing will be completed and actual revenue generated. Actual =evenue will

be transferred to WBS.

While =esult analysis performed for project the Actual =evenue and Eost will settled

to the profitability segment.

Sale document structureM Sales Document type represents the type of business transaction and functions and

the flow of document with in sale order. 3rocessing.

M $tem Eategories are assigned to sales document category. While creation of Sales order

it will default the item category but user can change it as per re1uirement.

M Schedule line category is assigned to $tem Eategory. While creation of document

system will default the scheduled line category but it can changed according to

re1uirement.

;


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+tem ,ategory

M Item Category is determine by Sales Document type and thematerials Items category group in a sales order.

M Item Category controls function for Sales Order like Item Type,Pricing, illing Plan, resource related or deli!ery related.

M It controls if pricing is rele!ance for billing, rele!ance for Deli!erySchedule "ine Item, and contains Incompletion "og and Partner te#t.


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#'%=epresents a process of make!to!order production without a work breakdown structure.

$n this case the sales order item is the contolling instrument. Account assignment category

4 specifies that the sales order item forms a separate E2 object.

Eosts and revenues of the sales order item are usually settled to the profitability segment.

#,%/sing assembly processing you can generate a network when you create the sales order.

When you save your data the system creates a WBS and assigns the sales order item to a

WBS element in this WBS. $n this case the sales order depicts the sales view the project is

the controlling instrument and logistical processing is represented by the network.

Account assignment categories D or L #Eons. F 3 in each case% specify that revenues

are assigned to the billing WBS element of the project.#0%As an alternative to assembly processing you can assign a sales order item to a WBS

element in a project. Eontrolling takes place in the project. ou can assign orders or

documents to the project. Jalue assignment to the project is controlled via account

assignment categories D and L. These differ from each other in the way that they

manage 1uantities.

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?ethods for plan revenue in a project are)

a. ?anual revenue planning) this can be based on structure or revenue element

where the later is a cost element and period based.

b. 3S billing plan) this is cost element and period based planning.

c. SD document) this is part of integration with SD module where sales order itemor 1uotation items are used as revenue planning. This kind of planning is cost

element and period based.

;


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=evenues can be planned in projects using the following methods)

?anual planning in billing elements in the project structure.

This type of planning can follow the same procedure as cost planning or can be by

revenue element.

Sales orders #all SD documents assigned%.

Sales order items are assigned to WBS elements. $n Eustomi(ing you can stipulate for a

combination of sales document category #1uotation order and so on% sales

document type controlling area and system status whether the billing data #for

e"ample in a billing plan% from a sales order should update the revenue plan for an

assigned WBS element. The dates and planned revenues concerned originate eitherfrom the billing plan for the sales order items or #if there is no billing plan% from the

net value and apportionment data for the item. The revenue element originates from

-9 account determination in SD.

Billing plan in project billing elements.

The revenue element is defined in Eustomi(ing.

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There are different ways of creating billing plans)

?anually

By copying a reference billing plan

$n SD and 3S reference billing plans can be

called upon automatically

By copying billing milestones from work

breakdown structures or networks

By copying billing milestones automatically from

the network in assembly processing

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$n the SD document you can define a detailed billing plan with a number of billing dates

instead of just a single billing date. A billing plan is a schedule containing individual billing

data for a particular sales document.

?ilestone billing is widely used in projects #for e"ample construction projects%.

$f you use milestone billing the total value to be billed is apportioned to the individual dates

in the billing plan per defined rules.

Billing plan dates can be blocked for billing

ou can set billing blocks manually or remove them by activating billing milestones.

As of =elease 7.> billing plans can also be entered for billing elements in projects. Such

billing plans can if re1uired be copied to the sales order later #make sure you delete

any e"isting billing plan in the billing element if you do not the planned revenues will be

determined via the 3S billing plan and not the SD billing plan%.

A billing plan can contain down payment dates. These dates affect payment but not

revenue.

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The term KVersion" is used in the project system in different conte"ts. Different

types of versions include simulation versions project versions and E2 planning

versions are available in SA3 3roject System which are discussed below.

3roject versions are snapshots of a project at a specific point in time and are

used for documenting the progress of a project over time. Both 1uantities and

values are stored in versions and it can be created either manually or

automatically when a status changes. $n the case of status change the project

profile contains a reference to a version profile which specifies the name of

the project version to be created when a particular user or system status is

set.

Simulation versions) $n the 3roject System these are versions that you can

change. ou might for e"ample create simulation versions in the following

situations)

$n the 1uotation phase) generally speaking at this stage there is not yet

an operative project.

To draw up alternative planning scenarios for e"isting operative projects

or parts of these.

E2 plan versions are used to plan revenues and costs. ou can copy values

from one version to another. ou can change planned values manually in every

version and cost values are retained.


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Simulation versions are used to draw up alternative Kwhat ifRK planning

scenarios. They are created manually can be changed and if necessary

deleted again which is unlike released operative WBSs with activities.

Simulation versions are useful during the 1uotation phase of a project

and possible to plan several simulation versions.

ou can create simulation versions even at the time of e"ecution of project

where you can copy from operative to simulation versions compare analy(e

and work with other versions and transfer them back to the operative

project.

When an operative project is copied to a simulation version or vice versa a

log file is created which contains the objects that were transferred and any

error messages that were issued in the process.

Simulation versions can be created either for an entire WBS or for

sub! hierarchies of a WBS.

Simulation versions are edited in the project planning board or in projectplanning board from SA3 =-0 7.:E release.

The system performs the test run while transfer to check if the operative

or simulation version can be transferred.

?ultiple Simulation version can be created compared and evaluated.


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Simulation customi(ation consists of two steps)

'. Jersion keys) one should work with permissible version keys since these cannot

be deleted once simulations has been created.

,. Simulation profile) This determines which all objects will be copied while creating

simulations #in addition to the structure information% from simulation tooperative #and vice versa%. $f there are no simulation profile all the te"ts will be

copied. The simulation profile will be defaulted in the project due to assignment

in project profile.

ust like project version simulation versions can be compared with each other in

information system whereas the cost element report does not support the

simulation versions. /nlike operative projects simulation versions cannot be

changed in structure info system.


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When you transfer data from operative projects to simulation versions #or

vice versa% the following objects are copied)

Work breakdown structure

etwork with activities activity elements relationships and

subnetworks ?ilestones

?aterials for the activity

Documents 3S te"ts and long te"ts #depending on the simulation profile

used%

Eapacity re1uirements

$nvoicing plan for the network and billing plan for the WBS element

#as of =elease 7.8A%

The following objects are not copied)

2ther orders #e.g. no production orders%

3roduction resources-tools


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3roject versions enable you to record a snapshot of a project at a specific

moment in time ! this can be used for future comparison with the

operative project.

ou can create a project version automatically #i.e. triggered by a system or user

status%.

ou can also create a project version manually)

While changing the WBS

While changing the network

$n the Structure-Dates information system for one or more projects

Data transfer when Jersion profile settings are used while using these transactions)

'. Status dependent project versions.

,. TE network maintenance E,, or WBS element maintenance E>,

Data transfer which is $ndependent of version profile and dependent on

database profile)

0. TE E;' and E;,

7. Structure information system


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