Post on 03-Jun-2018
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Gerald B. SteelePrincipal Consultant, SAP America, Inc.
FinancialIntegration in PPM
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Introduction to Financial Integration
Where is the Financial Data-Overview
Project Systems ECC 6.0
cProjects 4.0
xRPM 4.0
Questions & Limitations
FinancialIntegration in PPM
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SAP AG 2006, Title of Presentation / Speaker Name / 3
Business Case #1 PS
Business case descriptionA mid-market Pharmaceutical companydecides they need a better integrated tool to manage their R&D
projects.
Their requirements included:
Resource planning along a discrete curve over a long period of time.
Detailed cost planning for external partners with procurement process.
This includes multi-country/multi-currency highly regulated procurementand invoice postings.
Use of settlement to move costs to multiple receivers based on type focosts.
G/L for R&D costs, CCtr for clinical trials costs, PCA for other costs.
Extensive use of Graphics to build and manage project structures.
Use of CATS to enter time against projects for every employee in the R&Dorganization.
In this case, PS was a better fit as it best met the demands of the
customer to integrate HR, FI/CO, MM, and PCA.
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Business Case #1 PS
Chose to use Integrated Planning on WBS elements due to requirementto discretely plan resource across extensive duration. They also chose
to use the Project Planning Board to manage ALL aspects of theirProject Structure Planning and utilize WBS Cost planning to managetheir resource planning against cost centers.
Summary:
This Pharma customer is live with PS and most of the ERP modules fortheir R&D organization.
This Pharma customer implemented PS for the purpose of integrating their
financial and procurement tools with their project management tool.
They utilize integrated planning with CO to get a better view of their requiredresource load over time across projects.
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Business Case #2 xRPM
Business case descriptionCustomer uses PS in their R&Dorganization and MS Project in their IT organization. They do not have
a solution to manage ANY portfolio data.
They have the need to view and manage their IT portfolio across theirenterprise. Because they currently use MS Project for IT projects andwill want to manage their entire project portfolio, we proposed usingxRPM.
Questions regarding this decision surrounded the long-term vision ofportfolio management. Data origin (where the data comes from:
Project structures (MS Project, Artemis, Plan View, Primavera, etc)
Resources (MS Project, PeopleSoft/Oracle, SAP, etc)
Costs (MS Project, Primavera, Oracle, SAP, etc)
The use of xRPM allows this customer to continue using their existingproject management tools while providing the capability to addadditional tools to manage the enterprise portfolio as they determine
their portfolio design.
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SAP AG 2006, Title of Presentation / Speaker Name / 6
Introduction to Project Financial Integration
A key differentiator in the SAP tools for Project & PortfolioManagement (PPM) is the integration into the back-end Financial
and Controlling systems.
This functionality eliminates the need to enter data into multiplesystems and therefore maintains the official system of record.
All of the PPM tools SAP offers have this functionality.
The SAP Portfolio tool, xRPM, also provides connectivity from otherback-end Financial Management, Human Resources, and ProjectManagement tools to provide greater flexibility across theEnterprise portfolio.
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Introduction to Financial Integration
Where is the Financial Data-Overview
Project Systems ECC 6.0
cProjects 4.0
xRPM 4.0
Questions & Limitations
FinancialIntegration in PPM
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Where is the Financial Data
In the world of PPM tools such as Project Systems (PS) in ECC,cProjects 4.0, or xRPM, neither costs nor revenues originate via
direct transactions. As such, costs are moved into the PPM toolsPS, cProjects, and xRPM from other parts of the system such asPurchasing, Goods Movements, Sales Document Billings, LaborConfirmations, etc.
The following slide demonstrates how labor costs are generatedand stored in the Organizational Breakdown Structure (OBS) andthen moved to the project (PS) via labor confirmations and later offthe project via settlement.
Direct posting to the project occurs when goods receipt from a PO
is executed, an invoice is posted, or a goods issue occurs.
Revenue is posted to a project via a customer invoice (billing)posting.
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Cost Center
OBSWork Centers
DollarsActivity Types/
Rates
$75/hr
$50/hr
$25/hr
Project
1.11.2 1.3
0010
0040
0030
0050
0020
0060
Cost CenterEngineering
CraftDesign
10 hrs100 hrs
20 hrs
5 hrs
1,250
2,500750
Engineering
1.1
1.2
0020
Design 750
Engineering 250
Craft
0040
2,500
1,000
Airplane
$4,500
Project
$4,500
Asset
Settlement
25 hrs
10 hrs
blue = actual hrs Consumed
red = planned hrs
Where is the Financial Data
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Introduction to Financial Integration
Where is the Financial Data-Overview
Project Systems ECC 6.0
cProjects 4.0
xRPM 4.0
Questions & Limitations
FinancialIntegration in PPM
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Cost Planning in Projects
Overall planning
(hierarchical planning)
Cost planning using
activities/
network costing
E 10h service 1421
E 10h service 1421
F 10h vendor 1000F 10h vendor 1000
K $5000 ce 466000K $5000 ce 466000
Cost element planning
400000 150000
415000 75000
400000 180000
415000 80000
600.000
400.000 200.000
Unit Costing
1 1
Easy Cost PlanningI/0099
Projects and Orders
PP COPM/CS
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Network Cost Planning
PPP
0010 (E), 80h, Wctr 2000, AT 1421
0020 (F), 10h, PurcInfo 5500000170020 (F), 10h, PurcInfo 550000017
0030 (K), CE 466000, $50000030 (K), CE 466000, $5000
P-1PP--11
0040 (E), 80h, Wctr 2100, AT 14200040 (E), 80h, Wctr 2100, AT 1420
0050 (K), CE 400000, $50000050 (K), CE 400000, $5000
0060 (K), CE 417000, $20000060 (K), CE 417000, $2000
P-2PP--22
Planned costs
Periods1 2 3 4 5 6 7 8 9 10 11
Shifting a work
package
Shifting cost
planning automatically
Shifting a work
package
Shifting cost
planning automatically
PPP
P-1P-100100010
00200020
00300030
P-2P-200400040
00500050
00600060
Project Cost Planning Using Activities
11
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PS Financial Planning Questions
Do you need multiple CO plans?
Do you need varying levels (detailed vs. lump-sum) of cost planning?
Do you need cash flow planning?
Do you need budgets and/or availability control?
Do you need integrated planning? (PS & CCtr planning)
Do you need more than labor cost planning?
Do you need overhead costing sheets?
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Actual Costs on Projects
Y
X
Availability
control
Costs,
RevenuesDates
Integration
AMAM
FIFICOCO
SD
PM
MM
PP
Payment
data
Resources
HR
PSPS
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PS Financial Posting Questions
Do you need Accrual (FI) postings?
Do you need Settlement?
Do you need Internal Order integration for FI/CO control?
Do you need statistical projects?
Do you need Earned Value/Progress Analysis?
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Direct Procurement Procured Material Costs on Project
MaterialsMaterialsMaterials
N
Material procured directly by means ofan activity.
Purchaserequisition
Request forquotation
Quotationentry
Vendor
selection
Purch. orderprocessing
Purchase
monitoring
Invoiceverification
Item category
"N"Goodsreceipt
Actualcosts
Purch.req.commtfor
activity
Purch.req.commtfor
activity
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PS Procurement
Do you need direct Procurement?
Purchase requisition, purchase order, PCard
Do you need material planning?
Do you need procurement commitment tracking?
Do you need Project Stock?
Do you need GR/IR tracking?
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Stock or Make-To-Order (MTO) Procurement
Procurement Steps
Goods issue
Production order
Vendor
1000 Purchase
components
Goods receipt
for purch . order
Production
T- 20620T- 20620
Production
order
T- 20600
Production
order
T- 20600
410041004100
T- 20600TT-- 2060020600
T- 100##.4TT-- 100##.4100##.4
T- 20610T- 20610 T- 20630T- 20630
Goods issue
Network activity
(consumption)
Delivery
Production order
T- 100##TT-- 100##100##
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PS Using Production
Do you need production integration?
Do you need to track production costs and WIP in your project?
Do you need ETO/MTO BOM integration with inventory and costmanagement?
Do you need Variant Configuration?
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Revenue Planning in Projects
Revenues Revenues
TimeTime
01 02 03 04 05 06
Sales order withoutbilling plan
Sales order withoutbilling plan
Billing
plan
BB
BB
Billing
plan
BBEE--13991399
EE--13991399--11
EE--13991399--11--11
EE--13991399--11--22
EE--13991399--22
..
..
P
L
N
D
T
O
T
A
L
S
D
D
O
C
M
T
D
I
S
T
R
B
T
TotalTotal
...
...
...
...
Manual revenue planningManual revenue planning
BB
Billing
plan
Sales order with
billing plan
Sales order with
billing plan
Billing plan in
WBS element
Billing plan in
WBS element
20002000
20012001
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PS Revenue Integration
Do you need revenue planning?
Manual or automated from Sales Order?
Do you need Results Analysis?
Do you need Profitability Analysis & reporting?
Do you need Billing?
Resource Related Billing (RRB), Lump Sum, Fixed Price, ProgressPayments/Down Payments, Milestone Billing, etc
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Introduction to Financial Integration
Where is the Financial Data-Overview
Project Systems ECC 6.0
cProjects 4.0
xRPM 4.0
Questions & Limitations
FinancialIntegration in PPM
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cProjects: Project Accounting
Project cost controlling usingintegration to mySAP ERP
Financials and Project System (PS)
Multilevel controlling: cProjectsstructures can be replicated intoPS structures
Costs can be settled on internalorders or WBS elements
Calculation of project costs basedon role demand (plus integration withEasy Cost Planning in mySAP ERP)
S
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Task:
Link project structure
to accountingstructure
Solution:
cProjects 4.0
Benefits:
Use SAP ProjectSystem for Plannedand Actual Costs
Set up Accounting
Project Manager
P j t 4 0 M ltil l C t lli
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cProjects 4.0: Multilevel Controlling
Set-up project plan
Execution in time, inscope (and in budget!)
Plan costs and budget
Monitor execution
Project leadProjectcontroller
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Multilevel Controlling 1/2
Functionality
You can flexibly assign WBS Elements as cost collectors to project tasks.
It is also possible to assign multiple Internal Orders.
Different controlling scenarios are available
Assignment objects
WBS Elements
Internal Orders Assignment types
Manual assignments
Automatic assignments to WBS Elements
Assignment rules
Role based
Task based
Enhancements
Customer-specific scenarios can be executed using the BAdIIAOM_DET_CO_SCENARIO
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Multilevel Controlling 2/2
Enables bottom-up planning and top-down budgeting, billing andresults analysis (RA) aggregating values and quantities in the
hierarchyCalculation services to create cost estimates based on the assignedcProjects structure while costs (actual/planned) are stored on theWBS elements.
Settlement of costs originating from various sources: Actual costs derived from recorded and confirmed time on cProjects tasks
using CATS.
Costs derived from procurement or goods movements
Costs derived from project-related travel.
cProjects 4.0: Multilevel Accounting
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cProjects 4.0: Multilevel AccountingAssignment of work breakdown structures (WBS)
cProjectsStructure
PS Structure
A i t i PS d t
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Assignment in PS data
A new tab cProjects in the WBS elements
sight is coming with ECC 6.0 (ERP 2005)The assigned cProjects item is shown here.
Time and E pense Recording on cProject elements
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Time and Expense Recording on cProject-elements
SAP ECC
ControllingObject (PS/IO)
Billing
Contract
T&EPre-Billing
cProject
SAP ECC
ControllingObject (PS/IO)
Billing
Contract
T&EPre-Billing
cProject
Current Integration New Integration Option
T&E on Controlling Object
Manual Update of confirmeddays in cProject-tasks
T&E on cProject-task / role fromworklist
Confirmed hours / daysautomatically updated incProject-task
Costs updated on CO-Object
=> Less process steps and
one world for project team
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Introduction to Financial Integration
Where is the Financial Data-Overview
Project Systems ECC 6.0
cProjects 4.0
xRPM 4.0
Questions & Limitations
FinancialIntegration in PPM
Plan Financial Data
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Task:
Plan Financial Data
Plan Capacities
Solution:
xRPM 4.0
Benefits: Compare forecasted,
planned and actualdata
Plan Financial Data
Product
Manager
xRPM FI Integration
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xRPM FI Integration
Does financial data come from various systems?
SAP and/or others
Does project data come from various systems?
SAP and/or others
Do you need to report on projects that are not yet projects?
Concepts that do not exist in the tactical project management tool
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Introduction to Financial Integration
Where is the Financial Data-Overview
Project Systems ECC 6.0
cProjects 4.0
xRPM 4.0
Questions and Limitations
FinancialIntegration in PPM
Limitations
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Limitations
Budget control data in PS
Does not get passed on to cProjects
CO Plan version data
Only plan version 0 will get passed in to cProjects or xRPM
cProjects and xRPM do not support multiple CO plan versions
Portfolio project plans You cannot push project plans from xRPM down to PS or cProjects
CATS and cProjects
While it is true that you can post time to cProjects using CATS, you canonly post time against one project per timesheet
Effort required to upload data to xRPM
This effort requires a significant amount of time to execute the extensivenumber (6-7 programs) of programs required to move data fromcProjects/PS into xRPM
Questions
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Questions