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    Easy Cost Planning in SAP

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    venkat
    Easy cost planning in SAP PS allows for planning project costs in two ways: manually in the WBS or by creating activities for WBS elements. Easy Cost Planning provides an easy-to-use tool for cost planning in the WBS by cost element. Costing items are created for each WBS element where quantities can be entered using planning templates. Once adopted, the costing items appear under the WBS elements. Easy Cost Planning also allows directly creating purchase requisitions against WBS elements for execution.

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    Easy Cost Planning in SAP

    Uploaded by

    venkat
    3K views17 pages
    Easy cost planning in SAP PS allows for planning project costs in two ways: manually in the WBS or by creating activities for WBS elements. Easy Cost Planning provides an easy-to-use tool for cost planning in the WBS by cost element. Costing items are created for each WBS element where quantities can be entered using planning templates. Once adopted, the costing items appear under the WBS elements. Easy Cost Planning also allows directly creating purchase requisitions against WBS elements for execution.

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    SAP ECP

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    Easy cost planning in SAP PS allows for planning project costs in two ways: manually in the WBS or by creating activities for WBS elements. Easy Cost Planning provides an easy-to-use tool for cost planning in the WBS by cost element. Costing items are created for each WBS element where quantities can be entered using planning templates. Once adopted, the costing items appear under the WBS elements. Easy Cost Planning also allows directly creating purchase requisitions against WBS elements for execution.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    3K views17 pages

    Easy Cost Planning in SAP

    Uploaded by

    venkat
    Easy cost planning in SAP PS allows for planning project costs in two ways: manually in the WBS or by creating activities for WBS elements. Easy Cost Planning provides an easy-to-use tool for cost planning in the WBS by cost element. Costing items are created for each WBS element where quantities can be entered using planning templates. Once adopted, the costing items appear under the WBS elements. Easy Cost Planning also allows directly creating purchase requisitions against WBS elements for execution.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    of 17
    At a glance
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    The key takeaways are that project costs can be planned manually in the WBS or using activities, and Easy Cost Planning provides an easy way to plan costs by cost element using a quantity structure.

    The two ways to plan project costs are 1) manual planning in the WBS and 2) creating activities for WBS elements to plan costs.

    Planning costs using activities has the advantages that the resulting plan can be copied to new projects, cost planning is shifted automatically if parts of the project are shifted, and planning is by cost element and period.

    EASY COST PLANNING IN SAP PS

    You can plan project costs in two different ways:


    1) Manual planning in the WBS involves:
    Overall planning the most basic form, where you enter costs for each WBS
    element. You can break down your figures by fiscal year if you want
    Detailed planning of primary costs and activity inputs. This type of planning is
    cost-element-based and period-based
    Unit costing, where you use a profile to enter quantities (materials, internal
    activities, external services, variable items, and so on) for each WBS element.
    This type of planning is cost-element-based
    Easy Cost Planning from Release 4.6C. As the name suggests, Easy Cost
    Planning is an easy-to-use option for planning costs by cost element, using a
    quantity structure. You can then use Execution Services to enter commitments
    and actual data relating to the planned costs.
    2) In addition to manual planning in the WBS, you also have the option of
    creating activities for WBS elements, and using these activities to plan costs.
    This method has the following advantages:
    The resulting plan can be copied to new projects
    If parts of the project are shifted, cost planning is shifted automatically along
    with the activities
    Planning using network activities is by cost element and period.

    Easy cost planning


    Cost Planning, an easy-to-use tool for planning costs in WBS elements.
    Access from the Project Builder. Choose a WBS element from the structure
    tree. Costing items are created for this WBS element.
    Cost planning using Easy Cost Planning is by cost element.
    You can use planning templates to enter costing items. In the process,
    characteristics (such as work in hours) are valued.
    The characteristic values from the planning template are linked with
    quantities, values, or actions in
    the costing items .Once you have
    adopted the values, the costing items appear under the relevant WBS elements
    in the structure tree.
    With the implementation of Easy Cost Planning, this is no longer required to
    enter Cost Planning through CJR2
    In easy cost planning we need not to assign materials/services to WBS during
    project creation. You can enter a Planning for WBS when you need purchase
    of the Material/Services against that WBS element.
    With help of Easy cost planning functionality you can create purchase
    requisition directly in CJ20N

    Step by Step in Project System with New Project Profile and Easy
    Cost Planning
    01. Create Project
    Transaction: CJ20N
    You can use one project profile for all company codes instead of defining different
    project profiles for each company code. Its depending on client to client.
    I take Z000099 project profile as an example you can create your own profile.

    We will get the message that asking to enter Organizational Data.

    Here you have to enter the organizational data manually if you have common profile
    for all company code. Or you can create different profiles for each company code to
    default this organization data
    The factory calendar will be copied according to the Plant that has been entered.

    Enter the responsibilities and dates information.

    Click on the WBS Element Overview button.

    Enter the WBS Element and the requested information.

    Indicator for Integrated Planning


    Planning element check box must be ticked to use the easy cost planning functionality
    This indicator specifies whether an order/project participates in integrated planning or
    not. You define this per project profile for projects in Customizing:
    For orders, you can store a default value in the order type, which you can change in
    the order master data when required.
    Activity inputs planned in a plan-integrated order/project are updated directly on the
    sending cost center if 'Integrated planning with Cost Center Accounting' is activated
    in the version. You can then also settle plan-integrated orders/projects to cost centers.
    Plan data is passed on to the profit center and the extended general ledger if both
    'Integrated planning with Cost Center Accounting' and the "Integrated planning"
    indicator are activated in the version.
    Changing the "Integrated Planning" indicator
    you can change the "Integrated planning" indicator at a later date under the following
    conditions:
    Unit costing was never performed on the job affected. That is, no unit
    costing was carried out, even if it was later undone.
    Planning data was never entered on the job.
    OR
    If planning data was entered, then
    All plan values and -quantities from internal allocations must be
    zero. Data from primary cost planning is possible.
    The "Integrated planning" indicator may not be set in the fiscal
    year- dependent data from the plan version.

    No plan line items may exist.

    Responsible cost center and Required cost center must be maintained against WBS
    elements for those you want to do settlement against AUC

    02. Create AUC for Y2 type WBS elements


    Transaction: CJ20N
    An object that groups projects according to criteria, for example:
    Capital-investment projects
    Customer projects
    Development projects
    You can have sub projects below one project.
    One project has number of WBS levels. Its depends on complexity of the project.
    In current project i have taken only three WBS levels
    Project type Y1 for WBS level 1 & 2 and project type Y2 - capital WBS for level 3.
    You can define your own project types for WBS levels

    Click on the WBS element overview button.

    Highlight all Y2 type WBS elements

    From the menu: Edit-WBS element-Investment Program-Asset Under Construction

    Press Enter and go to Allocations tab and maintain the evaluation group.
    This should be tally with the future asset class where this AUC will be settled.
    Evaluation groups serve to classify fixed assets in any way you need.
    Current project is related to machinery and equipment small purchase.
    Click on go back button
    elements.

    and continue with the AUC creation for the next WBS

    After all AUC were created for each WBS element, then click

    button.

    03. Assign Budget


    Transaction:CJ30
    Note:
    With the implementation of Easy Cost Planning, this is no longer required to enter
    Cost Planning through CJR2

    Enter all budget value in each WBS elements.

    Click on check button

    Then click save button

    04. Release Project


    Transaction:CJ20N

    till get no error message

    and the document change will be posted.

    Click on open button

    and enter the Project Definition.

    Click on the WBS element overview button.

    Highlight the Project Definition (make sure it is the correct line).This should not be
    on the WBS element level.

    From the menu : Edit-Status-Release

    We will get message showing that status was set.

    Click on save button

    and will get message below.

    05. Easy Cost Planning


    Transaction: CJ20N

    Click on open button

    and enter the Project Definition.

    Click on the Easy Cost Planning button

    And click on

    then enter Costing variant PS06.

    To display the Cost Planning Item overview, click

    The Planning Items are displayed with all zero value at first.

    To enter a Planning, select the WBS element and enter the Material/Services we are
    going to purchase against that WBS element.

    If all information has been entered, Click

    Do the similar for all other Materials/Services required for the project.
    After finishing the Plan, click on back button

    to go back to Project Builder view.

    We will receive a message

    and then SAVE.

    06. Execution Service


    Transaction: CJ20N

    Click on open button

    and enter the Project Definition.

    Click on the Easy Cost Planning button

    Highlight the WBS element and click on the Show Execution Services button.

    With help of Easy cost planning functionality you can create purchase requisition
    directly in CJ20N
    Change the Execution Service field to Purchase Requisition.

    Enter the delivery date, select the item and then Post.

    Click the Log button to see the message.

    We should get the message that a PR has been created.

    Click the list on/off button to display the list of PR.

    Click on the PR number to display the PR details.

    The next processes are exactly the same as per the existing current processes, i.e.
    proceed to PO, GR, IR, settlement, etc.

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