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SAP Project System

Create Project Copy from

Standard WBS with Standard Milestone

Process External Cost, Sales Order with

Milestone Billing, Execute Billing,

Settlement

(also refer to previous Blog Post)

WBS0103 Standard Milestones

WBS0104 Create Standard WBS with Standard Milestones

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IDES Project Profile “0002 Cost Project” will be used for this demonstration.

The Principles behind Project System with WBS w/o Network is not covered entirely especially for Settlement Scenarios to Profitability COPA. Here, the main purpose is to show Milestone and its Billing Plan Execution methods as well as Cost collection and Settlement to Responsible Cost Center in a single Project Structure.

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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New Operative Project E-1199

12.05.2018

15.07.2018

Use Project Profile

0002 Cost Projects

Copy from Std proj definition

E-0099

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Save

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Double-click to Open Project E-1199

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Goto

WBS element overview

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Enter Cost Center 4290 as Responsibility Cost Center (as Settlement Receiver)

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Enter date for Milestone #1

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Enter date for

15, Month+1 Milestone #2

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Enter date for

15, Month+2 Milestone #3

SAVE

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Status

CRTD (Created)

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Status

REL (Released)

SAVE

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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User standard SD IDES order type

PS1

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Sold-to-Part use

1600

Material T-20000

1

Press ENTER

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Set $10,000 Sales Price in

Item - Condition

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In the Item Detail

Account Assignment TAB

Enter WBS Element

E-1199

Click BACK

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Select ALL

click COPY

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Billing Plan dates, Values from Project Milestone

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SAVE

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Sales Order

15331

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Use GR55

to view

Plan Review via the Sales Order

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Total Sales Review $10,000

(note Negative)

Cost Element

800000

Revenue GL

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Use IDES Cost Center & Activity Type

Version 0

Period 5 Year 2018 (depending)

Cost Center 4290

Activity Type 1421

Rate $100/Hour

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Use Easy Cost Planning to Plan and Confirm Internal Works

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Use IDES Costing Variant

PS06

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For E-1100-2

Switch on

Costing Sheet Item VIew

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Activity Type “E”

Cost Center 4290

Activity Type 1421

Quantity 20

Press ENTER

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Back, SAVE

Note

Cost Element

619000

Read from KP26

$100/hour

Total $100 x 20 h

= $2000

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Use GR55

to view

Plan Cost of Internal Works Planned via Easy Cost Planning

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Total Internal Labor Cost

Total $100 x 20 h

= $2000

Cost Element

619000

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Perform Internal Labor Confirmation via Easy Cost Planning tools

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Select Execution Services

“Internal actiivty allocation”

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Document Posted

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Use GR55

to view

Plan Cost of Internal Works Planned via Easy Cost Planning

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Actual Confirmation of Internal Activities Cost posted via ECP

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Prepare Material Group Purchasing Info Record

for MatGroup 00710

Vendor 1000

Pur.Org 1000

Plant 1000

Initial screen ME11

do not enter Material Group,

Press ENTER, then Enter Material Group Here

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Material Group Info Record

5500000287

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Plan External IT Services for E-1199-3

in

Easy Cost Planning

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F4

Item Category “F”

Quantity 1

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Double-click to select into ECP

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Back, SAVE

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Use GR55

to view

Plan Cost for External Activity

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Plan Cost for External Activity

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To generate PR for External Work Planned Earlier

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Enter a valid Purchasing Group and POST

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Note Purchase Requisition

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Use GR55

to view

Commitment Cost (Internal) created due to the PR creation

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At PR status, $3000 is Internal Commitment, click “Call up report”

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Account Assignment “P”

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Note PO

4500017263

created

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Use GR55

to view

Commitment Cost (EXternal) created due to the PO creation

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PO now as External Commitment Cost

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GR to PO

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Note Material Document

5000000001

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Use GR55

to view

Actual Cost posted due to the GR of External Activities

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Actual Cost due to GR of External Activities,

click “Call up report”

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Milestones Billing Dates are BLOCKED as Actual WBS dates are yet to be reported

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As an example, we will report Actual dates for all Milestones

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Milestone#1

Report

Actual date

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Milestone#2

Report

Actual date

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Milestone#3

Report

Actual date

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SAVE

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Once Actual Dates posted in WBS, Billing Plan dates are

Un-Blocked

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Sales Order Doc,

Pree ENTER

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SAVE

As All WBS with Milestones were reported with Actual Dates, All relevant Milestone Billing dates are now Un-Blocked for Billing

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Note Billing Document created

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Review Document Flow

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Billing Document

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Check FI

postings

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Debit Customer

Credit Revenue

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Use GR55

to view

Revenue Posting against Cost Postings

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-$10,000

shows Revenue Postings

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Set TECO

Current status

REL (Release)

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SAVE

Current status

TECO (Technical Completion)

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Check Settlement Rules for

E-1199-1

E-1199-2

E-1199-3

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Settlement Rule not yet created

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Strategy 11 (see slide 103)

(see slide 104)

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“3” is looking for Responsibility Cost Center

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Account Assignment Based WBS will be Settled to Responsibility Cost Center

Billing based WBS will be settled to Profitability Segment

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SETC = Settlement Rule Created

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Responsibility Cost Center becomes the Settlement Receiver

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Use GR55

to view

the current Actual Overhead (not yet Calculated)

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Next step is to calculate the Overheads

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Overhead Calculations are done via a COSTING SHEET which will be dealt with at other Blog Posts.

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Overheads calculated

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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In our example, we shall be settling WBS E-1100-2

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and also settling WBS E-1100-3

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Settlement for E-1199-2 & E-1199-3 only

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A Variant “Z” that includes only E-1199-2 & E-1199-3 to be Settled

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  • Create Operative Project copy from Standard WBS
  • Set Responsibility Cost Center (for Settlement)
  • Set Milestone Dates in the Operative Project
  • Release Project
  • Create Sales Order with Milestone Billing Plan
  • Check Revenue Report Planned via Sales Order
  • Debit Cost to Project Internal Work confirmation via ECP
  • Plan for External Work via ECP until PR and check Cost posted
  • PR to PO and GR to PO then check Cost for External work
  • Set Actual Dates for Milestones to Release Billing Plan dates
  • Execute Billing
  • Check Cost for Revenue generated via Billing
  • TECO Project
  • Generate Settlement Rule
  • Calculate Overhead and check cost reporting of overheads posted
  • Settlement
  • Check Cost Report after Settlement

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Use GR55

to view

Cost after Settlement

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All costs in E-1199-2 Settled

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All costs in E-1199-3 Settled