Hi,

To begin with:
We need atleast 4 Value categories:
1. Tcode: OPI1
Maintain 4 value categories e.g. 1300,1301,1302,400 and 410
For 1300, 1301, 1302 Select statistical key figure with total values.

For 400 select Costs.
For 410 Select Revenues.

2. Tcode KAH2: Create Cost element Groups.
e.g PSCost: assigne all the cost relvent cost elements to this group
PSREV: Assign all the revenue relevent cost elements to this group (Cost element
category:11)

Step:3 Tcode:OPI2.
Assign PScost to 400
Assigne PSRev to 410

3. Tcode CJVC, Check consistency for the value categoy assignments

4.Tcode KK01: Create statistical Key figure. e.g 10, 20,30 for the Controlling area.

5. Tcode OPI5:
Assign these 10,20,30 to 1300,1301,1302 respectively.
For detailed discussion on this topic please refer:
http://help.sap.com/saphelp_46c/helpdata/en/3d/72369adc56d11195100060b03c6b76/frames
et.htm






Progress Calculation
Use
You use the function to:
Determine the POC as of a particular point in time
Calculate the value of the work performed up to a particular point in time
Progress determination provides you with the key figures you need for this:
Percentage of completion (POC)
The POC describes the ratio of the services rendered up to a particular date to the total work
to be done in an activity or project.
The system distinguishes between three different uses:
o Non-aggregated values
The values are displayed per object.
o Aggregated values
The system shows the values aggregated according to the project hierarchy.
o For results analysis
The system determines the aggregated POC for the billing element. In carrying out
the aggregation, it takes account of the project elements subordinate to the billing
element in the billing structure.
The POCs are recorded under statistical key figures. You assign the statistical key figures to
value categories so that the system can display them.
You create the value categories for the POCs by choosing Project System Costs Value
Categories Maintain Value Categories.
To assign them to value categories, choose Project System Progress Assign Statistical
Key Figures to Value Categories.
Choose Project System Information System Cost/Revenues Information System
Project Info Database Check Consistency of Value Category Assignment.
Earned value
The earned value consists of the costs corresponding to the POC for an activity or project.
The earned value is calculated by multiplying the POC by the overall planned costs. "Overall
planned costs" is a synonym here for accumulated planned costs and the budget.
You can use the POC as the basis for results analysis.

You can use the POC as the basis for results analysis. The basis for results analysis
is the percentage of completion from the progress determination. According to
German law, this method can be used for internal purposes only.
See Results Analysis Methods and POC Method Using Progress Version (07) .
Prerequisites
A progress version must be defined in the Project System IMG. This is the means of stipulating the
most important control factors for the progress calculation, such as:
The base for determining the earned value
Planning type or set of dates
The POC calculation requires a measurement method : You can:
Use one of the measurement methods prescribed by SAP
Define default measurement methods per object in customizing
Define a measurement method directly in an object
If you work with statistical key figures, you must also make the following settings the Project System
IMG:
The statistical key figures where you want the POCs to be recorded

You assign the statistical key figures to value categories so that the system can
display them.
For more information on the assignment, see Values in Progress Analysis.
Default cost element for recording values by cost element
You define cost elements for cost elements groups and stipulate the default cost element.
For more information, go to the Implementation Guide of the Project System and choose
Progress Progress Analysis Maintain Assignment of Cost Element Group.
Features
Calculating the POC
The system uses measurement methods to determine planned and actual POCs for the following
project components:
WBS element
Activities
Activity elements
Orders for projects
How the Calculation is Carried Out
The system uses a base, such as overall costs, and the POC to calculate actual and planned figures
for the earned value (EV).
BCWS = Planned POC * overall costs
BCWP = Actual POC * overall costs
The following uses "POC" and "actual POC" synonymously.
You define the base in the progress version in the Project System IMG. Possible bases include:
Cost planned by cost element (current or CO version)
Annual budget
Overall budget

If you use planned costs as the base and determine the POC at activity level, the
networks in question must be activity-assigned.
In the case of the planned costs, the planned costs accumulated by period are taken
into account. However, the costs planned in hierarchy planning for the WBS element
are not.
If you use the budget as the base, you can only evaluate the earned value in WBS
elements.

You have agreed a budget with an ordering party. The earned value is to be
determined with reference to this budget. Choose the agreed budget as the base.
You want to analyze the earned value with reference to your best and worst-case
scenario planning. Choose the respective CO plan versions as the earned value
reference factor.
You want to analyze the expected earned value taking account of the change in the
cost situation caused by changes to planning. Choose the planned costs from the
forecast version as the earned value base. The earned value thus determined reflects
the forecast value for services to be rendered up to completion of the project.
See Project Cost Forecast .
The earned value is rolled up in the project hierarchy. The earned value is NOT recalculated in a
higher hierarchy level.
Taking Account of the Planning Type or Set of Dates
Delays usually result in cost variances. You can use different sets of dates or planning types when
determining the planned earned value. In progress version customizing, you stipulate which planning
type or set of dates the system should use for the calculation:
Planning type or set of dates: Basic or forecast dates
Key: Earliest or latest dates
Weighting
The POC of a project is arrived at by summarizing the POCs of the individual objects in line with the
project hierarchy. You weight the POCs of the individual objects in order to represent the proportion of
work package to the overall activity. You define the basis for the weighting in progress version
customizing: example - Work. Inaccuracies at individual object level are ironed out in the aggregated
display.

You want to analyze the progress of the internal activities only in your project. You
stipulate the Manual weighting basis when you configure the progress version. In
addition, you stipulate weighting factor 1 for internal activities and 0 for external
activities.
Only the progress for internal activities is included in the POC aggregation. The effect
of this is that external activity progress is not included in the calculation of project
progress.
The system records the aggregated and non-aggregated values separately in the statistical key
figures provided.
For more information, see the Implementation Guide of the Project System under Progress
Progress Analysis Define Statistical Key Figure for Percentage of Completion.
In the information system you can analyze the aggregate and non-aggregated POCs per object
together.

The system shows the values aggregated according to the project hierarchy.
Changes to the hierarchy or a different view lead to the aggregated values being
displayed incorrectly in the evaluation. If your project hierarchy changes, run progress
analysis again.
The earned value in the aggregated display is totaled up using the project hierarchy,
independently of the POC aggregation.
Recording the POC for Results Analysis
Only the POC from the billing element is relevant to results analysis. The system records the
aggregate POC for the billing element under the statistical key figure with the usage POC for results
analysis. The aggregation takes account of the objects from the billing structure only.

Correction Due to Changes in Plan
The POC and earned value are determined on the basis of information currently available in the
system. If the plan is changed while the project is in progress, this affects the values in the progress
calculation.

Changes in the plan lead to higher overall plan costs. If the POC does not change,
the earned value increases.
You determine the POC in proportion to the quantity of finished documents. If the
number of planned documents increases because of additional requirements being
made of your project, the POC falls accordingly.
The person responsible for the project needs to analyze the effects of these changes on earlier
periods. At the same time, there must not be any resulting inconsistencies with reports already made
to the ordering party.
In the Project System you can arrive at a consistent assessment of the project by analyzing both the
original values and the adjusted values. Correction postings arise only for the actual POC or earned
value relating to past periods.
See Example: Correction Postings.
Evaluation at Cost Element Level
In some cases, you will find it useful to analyze cost and schedule variances at cost element level.
This means that you can, for example, analyze the earned value in an activity separately according to
work and material.
The system first determines the POC under the original cost element. The system then updates the
determined values in summary under the cost element stipulated in customizing.
For more information, go to the Implementation Guide of the Project System and choose Progress
Progress Analysis Maintain Assignment of Cost Element Group.
Activities
See Calculating Your Projects Progress.
All the current values, values from past periods, and the plan values from future periods can be
analyzed at any time, either in graphics or flexible lists. In the same way, you can evaluate the earned
values corrected to reflect changes in the plan together with the original values.
A number of standard reports are available. However, you can define reports of your own.
See Evaluating Project Progress .
Q- I am currently working on a Chemical industry Re-implementation. My client
wants to implement Progress Analysis to measure EVA. They current use WBS
elements (No Networks). I have been trying to find an instance where progress analysis
(EVA) has been implemented for WBS so I can decide what needs to be in place.
Anyone who has some imformation on these should please give me an insight or
documentation. This would be greatly appreciated.
Tony
A-Unfortunately, from my experience, I can say that Progress analysis/ EVA Earned Value
Analysis in PS cannot be done without the activities and of course withouth the networks. We
had the same problem, as in our company as we had before only WBS and we needed EVA.
For EVA PS has the Transaction CNE5 and in this kind of reports (see also CN41) values of
rhe the field "actual work" will be "built up" on basis of activities confirmations. As I can
suggest you, if the company does not want to change the current structure of the projects, a
soulution would be to i! ntegrate PS with BW, if they have BW there, and to generate the
needed reports for analysing the EVA in BW.
Otherwise I have not heard to be possible to have Progress Analisys without activities in SAP
Standard.
Elena Manole
Thanks for the reply. It is very helpful. It confirms what I thought.
Tony
Progress analysis at WBS level is also possible., Use estimation method and put the
ACTUAL WORK DONE.
Mukesh
I agree with Mr Mukesh. We are using the EVA method estimation and actual work done for
WBS.
Please create a new "Z" method of EVA which will allow confirmation of WBS in a similar
way as being allowed for activities. You can then confirm the WBS for actual progress of
work and enter the % completion of actual work to get schedule vs actual curve.
Salim Mohsin Shakir
Using the Estimation method with WBS means you are not really doing EVM in SAP. You
would need to calculate the percentage using another tool. Also, since your WBS schedule
dates are not dynamic, the forecasts would be very difficult to create. If the company is re-
imiplementing, have them implement Networks Activities, at a minimum of one Activity per
WBS.

Sequence Of Operations To Get EVA
In my project system I want project progress analysis on the basis of only time
proportionality. Cost will not be consider for progress andtheir are different units used
like m, m3, km & hr for work in internal & external activities, so is it possible to do
such setting on the basis of confirmation in customisation?
Yes it is possible do through activity confirmation. It all depends on EV basis, their you need
to set time proportionality.
You need to perform sequence of operations to get EVA. for time prop. you need to maintain
scheduling, activity confirmation etc.

Define default meas method as Time prop for objects in customising.

You need to do customization settings for EVA for progress version, statistical key figures,
value catagories, progress cost element etc.

You can go the following customizing steps... this will help you to configure as per your
needs. This is not as per your need, as only you can understand what all the customizations
you need to do........

1. Create Progress Version 101 with exclusive use 'Progress Analysis'. I have selected Plan &
Actual check boxes.
2. Settings for Progress Version-
a) Plan version - '0'
b) EV basis - Cost plan (active project, annual values)
c) POC weighting - Cost plan (active project, annual values)
d) Planning type - Basic dates
e) Early / Late - earliest possible
f) Both reference boxes selected
3. SKFs- I created three SKFs 10 (Non-Aggregated POC), 20 (Aggregated POC) and 30
(POC for RA) with unit of measure '%' and selected the Key value category 'Total values'.
4. I need to assign these SKFs to different value categories. I created three value category 10,
20 & 30 with selection 'SKF with total values' and unit of measure '%'. Then I assigned SKF
10 to VC 10, SKF 20 to VC 20, SKF 30 to VC 30
5. I assigned measurement method as default value:
a) WBS (Plan) - Cost Proportional
b) WBS (Actual) - Cost Proportional
c) Internal Activity (Plan) - Cost Proportional
d) Internal Activity (Actual) - Degree of Processing
c) Exernal activity(Plan) - Cost Proportional
d) Exernal Activity (Actual) - Degree of Processing
6. I made progress cost element '6511100' (Secondary cost element) with Cost element
category as 61.
7. I maintain a value catagory 6511100 with Cost radio button selected.
And assigned the progress cost element to the value catagory. i.e Cost element 6511100 to
value catagory 6511100.
8. I maintain the assignment of cost element group. ie. I assigned progress cost elemnt to cost
element group with default radio button selected. In the cost element group, I have selected
certain cost elements which we regularly used (cost elements for project materials, project
manhours, project contracts, spares etc)

Run CJEN first then CNE1 and CNE5

Aggregate POC Calculation
When we confirm activities and see it in cns41 report we can see that the POC is
aggregated at the Network,WBS and porject level. How does the system calculate this..
i.e on what factors and criteria?
Result analysis determines the costs & revenues belong to the period, along with the Work in
progress (WIP) or Reserves.
Result analysis calculation is based on the planned / actual Cost & Revenue.
POC (Percentage of Completion) determines by the valuation method you opt
The formula for POC :
POC = R (a) / R (P) Revenue Proportionate
POC = C (a) / C (p) Cost Proportionate
Result Analysis Determines:
- Calculated Costs C(c) = POC X C (p) Same for Revenue
- WIP (If C(a) >C (c) ) WIP = C(z)= C(a) - C(p)
- Reserves for unrealized costs (if C(a) < C(c) )
C( r ) = C (c ) C(a)
- Revenue Surplus (if R (a) > R(c) )
R (r) = R(a) R(c)
E.g.
Revenue Proportionate RA:
In some project you have R(p) =3000$
C (p) = 2000$
R (a) = 1200$
C (a) = 1000$
Then POC = 1200 /3000 = 40 %
C(c) = POC X C(p) = 40 % X 2000 = 800$
WIP = C(z) = C(a) C(c) = 1000-800 =200$
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