Integrating WBS Elements From SAP Project Systems to Customer Individual Requirements

I n t e g r a t i n g WB WB S El e m e n t s f r o m SA P Pr o j e c t S y s t e m s t o C u s t o m e r I n d i v i d u a l R e q u i r e m e n t s ( Sa Sa l e s Order)

Applies to: SAP Project Systems irrespective of version

Summary This Document guides through the basic integration scenario of the Project Systems with Sales & Distribution Module. Integration of Project Systems to Sales Scenario is generally followed business practice in any industry which involves customized delivery of final product to the customer

Author:

Amarendra M

Company: Intelligroup Inc., Created on: 29 December 2008

Author Bio M Amarendra has a Bachelors degree in Engineering and has been working in the different modules of SAP from last 7 years. He is working as a Senior Business Consultant with Intelligroup Inc. He has expertise in SAP PS, SAP SD, SAP CO, Variant configuration.

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Integrating WBS Elements from SAP Project Systems to Customer Individual Requirements (Sales Order)

Table of Contents Project Systems – Customer Oriented Project Implementation Situation ..........................................................3 Integration of Projects Systems (PS) and Sales and Distribution (SD) ..........................................................3 While Creating Project Structure.....................................................................................................................3 Project Customization Prerequisites – OPSB, OPSA .....................................................................................4 Customization Settings from Sales and Distribution (SD) Perspective (OVZG):............................................6 Requirement Type Determination: ...............................................................................................................................6

SD Order Creation ..........................................................................................................................................8 PS Transactions (CJ43) ................................................................................................................................10 Costs Structure Creation in Projects (CJ20N) ..................................................................................................11 CN41 – PS Information Report.........................................................................................................................13 Disclaimer and Liability Notice..........................................................................................................................14




Project Systems – Customer Oriented Project Implementation Situation Integration of Projects Systems (PS) and Sales and Distribution (SD) This article focuses on an aspect of integration of Projects systems (PS) and Sales and Distribution (SD) Mostly such integration scenarios are in High- tech Capital industries where each Sales document runs most of the time into millions of dollars revenues and such revenue is billed based on delivery of certain assemblies, or phase wise completion of the Contract terms. To keep track of such revenues, Project System module is very helpful. The Project structure can be modified as per the revenue streams of a Sales contract, different WBS elements can be to each item in a single Sales Order or to multiple sales orders as per the scenario requirement. And then, if using networks for the cost planning which in turn are assigned to WBS element and with totaling up functionality available for the WBS structure, WBS elements usage helps to analyze costs incurred and revenues received for the Project. Since project customers have generally customized customer requirements, tracking of such customized solutions on their costs & revenues from a logistical & financial point of view can be difficult to keep track of and hence this kind of integration help to keep better overview on works & revenues. The below scenario explains in simple terms how the Project Structure can be linked to the Sales Order Item. In PS, the planning of expected revenues can be done at either WBS element structure level or revenue element level. We are looking at planning of revenues at WBS element level If business requires that planned revenues need to come a Sales Document, that scenario follows. For revenues to come from SD, the sales document has to have account assignment to WBS element with a billing plan in it.

While Creating Project Structure First important check to keep in mind is maintenance of the Billing Indicator in the Project Structure for planned revenue values to be visible in PS. This setting allows for planned revenue on WBS element.




Project Customization Prerequisites – OPSB, OPSA If these planned revenues are to flow from the Sales Order , it is important that the planning profile associated with the project contains certain customization settings as shown below. This Planning profile is assigned to the project profile which is used to create the project as the below screen shows.




The planning profile should have the tick maintained in the check box “ from the sales order” if the values need to come from sales order as shown by below screen shot.




Customization Settings from Sales and Distribution (SD) Perspective (OVZG): Requirement Type Determination: How does Sales order transfer its net price/ agreed invoice value as planned revenue to the project. It depends on how is the account assignment of the Sales Order item is handled and the maintaining of the billing plan foe the item. The account assignment depends on the determination of the requirement type of the material. Added to this, material master data should be maintained appropriately to successfully have the WBS element as the account assignment. The System uses the MRP group in the material master records and the sales document type, along with the item category group to determine the requirement type. The determination also happens based on the strategy group maintained in “MRP 3” view of the material master. There is a sequence to this determination. If no strategy group is maintained in “Material master”, the system will determine it using the “MRP group” maintained in “MRP 1” view of material master. If no MRP group is maintained in “Material master”, the system will determine it using the “Material Type ” of the material master. If still system is unable to determine the “ Requirement type”, the system attempts to find with the help of the “ item category “ in SD item and the “MRP type” maintained in “ MRP 1” view of the material master. At customising level,the requirement type, in turn , is uniquely assigned to a requirement class.




The requirement class has the following configuration :The important configurations to be maintained are

The above configuration step of requirement class is the most important in terms of integrating Project system with SD and MM modules. In this, Account assignment category setting - Q or D decides if the Sales Order can be linked to Project System. Q is for Value & Stock management at Project level while D does the same at Sales order level




SD Order Creation When an item is added in the Sales Order is being created, System automatically checks for the requirement type in the background and issues the message as the below screen shows :-

The ‘requirement type” can be checked in the columns you get when “Procurement “ tab is selected at the sales order header.

The column in the procurement tab to be checked :-




Such Sales order only gets saved when “WBS element” value is inputted in the Account Assignment tab. Then the billing plan should be maintained for each billable item in the sales order.

When the billing plan is maintained in the sales order item, then only values flow from SD to PS.




PS Transactions (CJ43) Transactions CJ42/CJ43 (revenue planning) or CN41 (PS Financial reports) can be used to check if the revenues had transferred to the WBS element from the sales order. In this scenario, as only 30% is to be billed at “contract sign” this year and the remaining in next year as shown by the dates in the billing plan, the “sales order value” column in CJ43 shows the distribution of the revenues across the periods in 2008 and in next year 2009 .

The rest is in year 2009.

Cumulative column shows entire values for both years ( = Sales order Value + Prev year) The “Sales order Value” shows the amount to be billed in 2009. When the actual billing is done as per the dates in the billing plan, the actual revenue too gets posted to the WBS elements.




Costs Structure Creation in Projects (CJ20N) Network creation and then creating the activities in it through any structure maintenance transaction (CJ20N/CJ2D) and with proper assignments of these activities to the required WBS elements can be used to track the project costs.




The below structure shows the layering of the network & assignment of activities and components to all the procurement & production items

These activities and the components assigned to them are used to collect costs which are totaled up to each WBS element and to finally the top most WBS element.




CN41 – PS Information Report The below screen shot of CN41 report shows the planned revenues on the WBS elements ,value flow being from the sales order to the WBS elements

Thus, the superior WBS elements/project definition can act as the pivotal point on which costs and revenues can be compared and thus a superlative analysis can be done to monitor the profitability of the project.

In a project scenario where the costs and revenues can get easily out of track , such mapping in the system helps for project managers to better monitor their cash ,cost & revenue flows. The real scenario in an industry can have multiple instances of above described scenario, with WBS elements being billing relevant and the Project sales order having 500-5000 items with assignments to WBS elements.




Disclaimer and Liability Notice This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade. SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document, and anyone using these methods does so at his/her own risk. SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or code sample, including any liability resulting from incompatibility between the content within this document and the m aterials and services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this document.



Integrating WBS Elements From SAP Project Systems to Customer Individual Requirements

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