R2R KT SESSION – PROJECT SYSTEM

SETTLEMENT PROCESS

1 25th Nov 16 (Thursday)

Presenter :
Praveen Francis
 Introduction : Project System

Project System is part of SAP‘s solution for Project and

Portfolio Management. Project System helps you
manage the project through its entire life cycle, from
setting up a structure, to drawing up detailed plans, to
execute and completing the project.

2 Because of its tight integration into financial and

logistic core enterprise processes Project System can
especially be used for large and complex projects such
as construction, production, maintenance, investment,
or costs projects in all industries.
 Work Breakdown Structure (WBS)

The work breakdown structure (WBS) is a model of the project

that organizes project tasks into a hierarchy.

It is the functional basis for further planning steps in a

project, for example, for process planning, cost planning,
scheduling, capacity planning or costing, as well as
project control.
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It gives you a clear picture of the project and facilitates
the coordination and implementation of the project from a
management standpoint.

It shows the work involved in a project.

What is a Work Breakdown Structure?

A work breakdown structure (WBS) is a model of the work to be performed in a project organized
in a hierarchical structure. The WBS is an important tool which helps you keep an overview of
the project:

 It forms the basis for organization and coordination in the project.

 It shows the amount of work, the time required, and the costs involved in the project..
 It is the functional basis for further planning steps in a project, such as process planning,
cost planning, scheduling, date and capacity planning, or costing, as well as project
control.

The project structure can be represented according to different criteria:

 By phase (logic-oriented)
 By function (function-oriented)
 By object (object-oriented)

 In a work breakdown structure (WBS), you describe the individual tasks and activities in the
project as individual elements in a hierarchy.
 Depending on the phase of your project, you continue to break down the tasks and activities in
your project, step-by-step, until you reach the level of detail necessary to carry it out. 4

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 TO EXPLAIN IN DETAIL JUST
CONSIDER ONE EXAMPLE
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EXAMPLE:

 Consider Govt of India wants to have Roads to be build

through out the India. So project can be defined in sap as
"Connectivity".
 WBS can be roads within different states like Roads for
Gujarat, Karnataka etc.. i.e. WBS -Gujarat, WBS -
Karnataka etc.
 We can define different networks for these WBS like Road
Between Ahmadabad to Surat OR between Bangalore
to Mysore.
 For this network we can have many activities like Land
selection, Land Preparation, Road Building, Final finishing
etc .
 For each WBS we have specified budget allocated which
is the approved cost structure for a project.

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BUDGET MANAGEMENT

Budget is the approved cost structure for a project. You can

allocate budget to projects in Investment Management or
directly in Project System.

Budgets can be distributed hierarchically within the project

structure. If required you can successively release budgets
and post updates, such as budget supplements or
returns.

Budget availability control enables you to control costs

actively by issuing warnings and error messages when
Tolerance limits of the budget are exceeded because of
assigned values.

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ORIGINAL BUDGET – SCREEN FOR PROJECT

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CREATE PROJECT – CJ20N

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We will see now how to create new project for Capital & Revenue
project expenditure.
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PROJECT PROFILE
 The project profile contains default values and other control
parameters such as the planning method for dates and costs.
 The data that you enter in the project profile will be copied into a
project in its project definition or in the elements which can later be
overwritten.

Notes:
The values in the project profile determine the functionality of
certain areas of the Project System and cannot be changed without
careful thought. Do not change profiles and key from related functions
which are defined in the project profile, such as the costing sheet or the
results analysis key. These changes could effect existing objects.

You must maintain the following sections for the project profile:

 Basic data
 Time scheduling
 Costs/revenues/finances
 Organizational data 10

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WBS ELEMENTS :

The individual elements represent activities within the work breakdown

structure. The elements are called work breakdown structure elements (WBS
elements) in the Project System. WBS elements can be:

 Tasks
 Partial tasks which are subdivided further
 Work packages

For any project defined we must have at least one WBS. Within this WBS we
can have networks. Networks are nothing but the series of activities.
Material are used to perform the activities.

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CREATE WBS ELEMENT UNDER PROJECT

We will see now how to create new WBS element related to project 12
type – Assets Under Construction.
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DEFINITION: PROJECT TYPE & OBJECT CLASS

Project Type: Definition as per Project System (PS)

An object that groups projects according to certain criteria is defined as

project type, for example:
 Capital-investment projects
 Customer projects
 Development projects

Object Class : Definition as per Controlling (CO)

The object class categorizes Controlling objects according to their

business function and enables you to analyze cost flows within
Controlling from different business perspectives.

The following object classes are available as:

 Overhead
 Production
 Investment 13
 Profitability analysis and sales

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 SETTLEMENT PROCESS

Settlement of Actual cost from WBS to AUC

Settlement of Actual Cost from AUC to Assets

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Settlement of Actual cost from WBS to Cost Centre.
SETTLEMENT OF ACTUAL COST FROM WBS TO AUC
CJ88 – SETTLEMENT OF AUC

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CJ88 – SETTLEMENT OF AUC – TEST MODE

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CJ88 – SETTLEMENT OF AUC – TEST MODE

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CJ88 – SETTLEMENT OF AUC – REAL MODE

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CJ88 – SETTLEMENT OF AUC – REAL MODE

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CJ88 – SETTLEMENT OF AUC – REAL MODE

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CJ88 – SETTLEMENT OF AUC – REAL MODE

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 SETTLEMENT OF ACTUAL COST
FROM WBS TO AUC
FULL SETTLEMENT
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SETTLEMENT OF AUC – FULL SETTLEMENT

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SETTLEMENT OF AUC – FULL SETTLEMENT

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SETTLEMENT OF AUC – FULL SETTLEMENT

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SETTLEMENT OF AUC – FULL SETTLEMENT

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FULL SETTLEMENT – ACCOUNTING DOCUMENTS

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 SETTLEMENT OF AUC TO FIXED
ASSET & COST CENTRE

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SETTLEMENT RULE – PATH TO CHECK AUC LINK TO WBS

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WBS SETTLEMENT RULE – PATH

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WBS SETTLEMENT RULE

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SETTLEMENT OF AUC TO FXA & CTR – TEST MODE

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SETTLEMENT OF AUC TO FXA & CTR - TEST MODE

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SETTLEMENT OF AUC TO FXA & CTR – TEST MODE

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SETTLEMENT OF AUC TO FXA & CTR – REAL MODE

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SETTLEMENT OF AUC TO FXA & CTR – REAL MODE

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SETTLEMENT OF AUC TO FXA & CTR – REAL MODE

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SETTLEMENT OF AUC TO FXA & CTR – REAL MODE

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SETTLEMENT OF AUC TO FXA & CTR – ACCOUNTING DOC

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ASSET EXPLORER – AW01N

You can see that assets acquisition done successfully

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QUESTIONS

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