SAP PS-HR Casestudy

SAP UCC May 2009 Page 1/32

Integration Case Study Project Management and

Human Resources (PS-HR)

SAP ERP 6.0


Table of Contents SCENARIO AND PROBLEM DESCRIPTION .................................................................................................. 3

PREPARING THE MASTER DATA.................................................................................................................. 4

Creating SD Master Records........................................................................................................................ 4Creating Customer Master Record......................................................................................................................... 4Creating Dummy Material Master Record for Project Management...................................................................... 4

Creating CO Master Data ............................................................................................................................. 4Creating Activity Type for Senior Consultant Hours ............................................................................................ 4Creating Activity Type for Junior Consultant Hours ............................................................................................ 4Planning Hourly Rates for Activity Types on IT Cost Center ............................................................................... 4Assigning Activity Types to Activity Type Groups ................................................................................................. 4

Creating PS Master Data.............................................................................................................................. 4Creating Project Structure ..................................................................................................................................... 4

Creating Project Definition ............................................................................................................................... 4Creating WBS Element for Milestone Billing .................................................................................................... 4Creating WBS Element for Business Blueprint Project Phase........................................................................... 4Creating WBS Element for Realization Project Phase ...................................................................................... 4Creating Milestone for Business Blueprint Phase ............................................................................................. 4Creating Milestone for Realization Phase ......................................................................................................... 4Creating WBS Element for Special Expenditures .............................................................................................. 4

Creating HR Master Data ............................................................................................................................. 4Creating Personnel Master Record for a New Consultant.................................................................................... 4

TESTING THE BUSINESS PROCESS............................................................................................................. 4

Releasing Project.......................................................................................................................................... 4Entering Sales Orders with Reference to Project......................................................................................... 4

Creating Order for Milestone Billing..................................................................................................................... 4Creating Order for Resource-Related Billing ........................................................................................................ 4

Entering Project Hours and Vacation Days .................................................................................................. 4Checking the Effects of Time Data in Target Applications ........................................................................... 4

Further Processing of Time Data in HR ............................................................................................................... 4Further Processing of Time Data in PS/CO .......................................................................................................... 4

Entering Costs for an External Service for the Project ................................................................................. 4Entering Vendor Invoice ........................................................................................................................................ 4Analyzing Actual Costs in Project Information System ........................................................................................... 4

Conclusion of First Project Phase ................................................................................................................ 4Project Billing ................................................................................................................................................ 4

Creating Billing Document for Completed Blueprint Phase................................................................................. 4Creating Resource-Related Billing Document for Special Expenditures ............................................................. 4

Determining Activities for Billing ..................................................................................................................... 4Creating Debit Memo Request........................................................................................................................... 4Creating Billing Document for Customer .......................................................................................................... 4

Period-End Closing in Project Controlling .................................................................................................... 4Analyzing Project Values......................................................................................................................................... 4Entering Settlement Rules for WBS Elements ...................................................................................................... 4

Settlement Rule for First Account Assignment Element ..................................................................................... 4Modify the Settlement Rules of WBS Elements................................................................................................... 4Performing Calculation of Profits for Fixed-Price Part of the Project ............................................................. 4


Scenario and Problem Description This case study illustrates a typical service business process. The specific example used is an SAP implementation project. One part of the services is delivered for a fixed price for each project phase (milestone billing), while certain additional expenditures are billed by effort (expenditure-based invoicing). The case study focuses on the modules PS (Project System), HR (Human Resources), SD (Sales and Distribution), and CO (Controlling), as well as some FI (Financial Accounting). Before you start the case study, you can display the transaction codes in the SAP Easy Access menu: Select menu item Extras Settings,

and press ENTER or click to confirm. Change your SAP GUI settings as follows: Choose and then Options. Go to the Expert tab. Select the Show Keys in All Dropdown Lists indicator and choose ENTER to confirm.


Preparing The Master Data

Creating SD Master Records

Creating Customer Master Record From the SAP menu, choose Logistics Sales and Distribution Master Data Business Partner Customer Create Complete (transaction code XD01). Number the new customer account "CUST2-##", where ## stands for your computer/group number. The new customer belongs to account group [KUNA] General customers. Assign it to company code [1000], sales organization [1000], distribution channel [10], and division [00]. The reference is customer [1000] from company code [1000], sales organization [1000], distribution channel [10], and division [00]. Press ENTER to confirm. A message is displayed indicating that the account group of the reference is Sold-to party. Press ENTER to skip this warning. In the next screen, Create Customer: General Data, enter a name, a search term, a city, and a postal code of your choice. Note that the postal code must be 5 places, numeric, because the country [DE] was copied from the reference. In Communication Area, select [EN English] as the Language. Click display next tab page or press F8 to go to the Control Data tab. Enter the value DE123123123 in field VAT reg. no. Then click . Now go to the Billing documents tab and enter Liable for Tax [1] as the tax classification. Click to save. If any warning messages appear, click ENTER to skip them. Click to exit the transaction.

Creating Dummy Material Master Record for Project Management You have to create a material master record that will be used as a dummy in the subsequent sales document, for the project that is sold to the customer. To do so, choose menu path Logistics Materials Management Material Master Material Create (General) Immediately (transaction code MM01).


Enter the following data: Material: PROJECT-## (## = your computer/group number) Industry sector: [3] Service Provider Material type: [DIEN] Service Press ENTER. The system displays the view selection screen. Select the following views (left-click each one until they are all highlighted): Basic Data 1, 2 Sales views 1, 2, 3 MRP views 1, 2, 3, 4 Select the Create Views Selected indicator. Press ENTER. The system prompts you to enter the organizational units for which you want to create the material. Enter the following: Plant: [1000] Hamburg Storage Location: (None) Sales Organization: [1000] Germany Frankfurt Distribution Channel: [10] Final customer sales Leave the remaining fields blank and press ENTER. In the Basic Data 1 view, enter the long text for the material as "IT project ##" (again, ## is your computer/group number). The base unit of measure is Pieces [PC] and the material will be used Cross-Division [00]. Change the General Item Category Group to Milestone Billing [0005]. In the Sales SalesOrg1 view, enter plant [1000] as the Delivering Plant and Full Taxes [1] as the tax classification. In the Sales: SalesOrg2 view, flag the material as Relevant for Statistics [1] and change the Item Category Group to [0005] in this view as well. Please note! The General Item Category Group field on the left is already set to [0005]. You have to change the right field, Item category group. In the Sales: general/plant view, define that No Check [KP] of availability will be performed for this material. In the MRP1 view, enter No planing [ND] as the MRP type. The purchasing group is Dietl, B. [001].


In the MRP2 view, set the planned delivery time to [1] day. In the MRP3 view, set the strategy group to [21] Make-to-Order/Project Settlement. This will enable you to link this material in the sales document with a work breakdown structure element from the PS module later during the case study. Select to display additional data. In the second row of the Descriptions view, enter the country key DE and as material description IT Projekt ## as your project shall later be sold to a German customer. Go back by selecting and click to save the new material.

Creating CO Master Data The actual working hours of the IT consultants are to be recorded using two different activity types: senior consultant hours and junior consultant hours.

Creating Activity Type for Senior Consultant Hours Choose menu path Accounting Controlling Cost Center Accounting Master Data Activity Type Individual Processing Create (transaction code KL01). If the system prompts you to enter a controlling area, enter [1000]. Number the activity type "SC-##" and define the validity from January 1 of the current year. Press ENTER. Enter "Senior Hours ##" as a name. The activity unit is measured in Hours [HR] and is valid for All Cost Center Cate [*]. Set the activity type category to Manual entry, manual allocation [1]. Assign cost element [626200] DAA Senior Consultant as the allocation cost element. Click to save.

Creating Activity Type for Junior Consultant Hours Now create another activity type for junior consultant hours. Number it "JC-##". Use the activity type you created previously, "SC-##", as a reference. After you press ENTER, change the name to "Junior Hours-## and select allocation cost element [626100] DAA Junior Consultant. Click to save.


Planning Hourly Rates for Activity Types on IT Cost Center Choose menu path Accounting Controlling Cost Center Accounting Planning Activity Output/Prices Change (transaction code KP26). Choose version [0], periods 1-12 of the current fiscal year, cost center [4120] IT Department, and activity type SC-##. Choose Form-Based (below) and choose the overview screen . Define an hourly rate of 100 EUR for the senior consultant in the Fixed Price column. Then save with . Repeat this planning step for activity type JC-##, but enter a lower hourly rate of 50 EUR. Click to save this price as well.

Assigning Activity Types to Activity Type Groups In this activity, you take the activity types you defined previously and group them together in activity type groups, because the customer is to be billed for expenses that are differentiated by senior and junior consultant. This assignment is used for expenditure-based invoicing later in the business process. Note: Because all participants in the case study assign their activity types to the same activity type groups, temporary lock problems may occur at this point, because only one user can access the same data at one time. In this case, wait a moment and try to change the activity type groups again (as described below). Choose menu path Accounting Controlling Cost Center Accounting Master Data Activity Type Group Change (transaction code KLH2). Enter activity type group "SENIOR" and press ENTER. (Note: Your instructor has already created this activity type group). Assign activity type SC-## to the group by selecting the top node, SENIOR, and then clicking . Now enter activity type SC-## in the first column and press ENTER. Click to save and then go back . Stay in the Change Activity Type Group: Initial Screen and enter activity type group "JUNIOR". Press ENTER.


Save only activity type JC-## in this group (using the procedure described above).

Creating PS Master Data

Creating Project Structure

Creating Project Definition Now define the project structure. To do so, choose menu path Logistics Project System Project Project Builder (transaction code CJ20N). The first time you start this transaction you see the message, "Welcome to the Project Builder". Choose "Skip this in future" and then press ENTER. Press ENTER again to skip the next window. You are now in the main screen of the Project Builder. To create a new project, click the paper symbol and choose Project (or alternatively, choose menu path Project New Project). Enter "W.##" as the project definition (= project number). In the next field (to the right), enter "SAP Implementation ##" as the long text. Select project profile ISP: Service Projects [ISP1000] and choose the entry Non-Valuated Stock in field group Project Stock. Then press ENTER. You now see the project header element you just created in the upper left part of the screen. The Basic Data tab appears in the right window. Change the assigned organizational units in this page as follows: Controlling area: [1000] Company code: [1000] Business area: [9900] Plant: [1000] Project currency: [EUR] In the Dates area, change the factory calendar to Factory Calendar - Germany Standard [01]. Enter the first working day of the current month as the start date and the last working day of the current month as the end date.


Creating WBS Element for Milestone Billing The window in the lower left (Templates: Name) contains several template structures for creating project structures under Individual Objects.

Click a WBS element with the mouse and drag it to the upper-left area of the window, to the project definition you created previously. The system creates key W.##1 for the new WBS element in the right screen area. In the next field to the right, enter "SAP Implementation Fixed Price" as the long text. Press ENTER. The system now displays the updated project structure in the upper-left window, enhanced with the new WBS element. Set the Billing Element flag in the Basic Data tab (on the right) for the WBS element you just added to make this WBS element an account assignment element and a billing document.

Creating WBS Element for Business Blueprint Project Phase Drag another WBS element from the template window, but move this one to the first WBS element you created, "W.##1". The system assigns the key "W.##1.1" in the right screen area. In the field to the right, enter "Business Blueprint Phase" as the long text and press ENTER to confirm. You can see the project structure expand again on the left. This element will only be used as an account assignment element.

Creating WBS Element for Realization Project Phase Drag another WBS element from the template window, and again move this one to the first WBS element you created, "W.##1". The system assigns the key "W.##1.2" in the right screen area. In the field to the right, enter "Realization Phase" as the long text and press ENTER to confirm. You can see the project structure expand again on the left. This element will only be used as an account assignment element.

Creating Milestone for Business Blueprint Phase Click a milestone in the template window and drag it to the WBS element for the Blueprint phase (W.##1.1). The milestone number is assigned automatically by the system, so you only have to enter a long text: "Blueprint Milestone". In the Usage area, set the Sales doc. date flag on the right side of the screen. Enter an Invoice Percentage of 40%.


Enter the 15th of the current month as the basic fixed date for the milestone. If a system message appears stating that "The 15th is not a working day", press ENTER to skip it.

Creating Milestone for Realization Phase Click another milestone in the template window and drag it to the WBS element for the Realization phase (W.##1.2). The milestone number is assigned automatically by the system, so you only have to enter a long text: "Realization Milestone". Press ENTER and it appears on the left in the project structure. In the Usage area, set the Sales doc date flag on the right side of the screen. Enter an Invoice Percentage of 60%. Enter the last working day of the current month as the basic fixed date for the milestone.

Creating WBS Element for Special Expenditures Drag another WBS element from the template window to the top window. Drop this element directly onto the project definition (W.##). The system assigns the number automatically on the right (W.##2). In the field to the right, enter "Special Expenditures" in the Long Text field. Press ENTER to see the extended structure on the left. Flag WBS element W.##2 as an Account Assignment Element as well, making this WBS element an account assignment element and a billing element. Your project structure should now look like this:

Click to save the project.


Creating HR Master Data

Creating Personnel Master Record for a New Consultant Choose menu path Human Resources Personnel Management Administration HR Master Data Personnel Actions (transaction code PA40). Enter "110000##" (## = your computer number) as the personnel number for the new employee and January 1 of the current year as the start date. In the lower window, choose action Time Recording (Mini Master) by clicking the line (make sure it is completely highlighted):

Press Execute. The Time recording (Mini Master) screen appears. Assign the new employee to personnel area Hamburg [1000], employee group Active [1], and employee subgroup Salaried staff [DU]. Click to save. The Personal Data screen appears (Infotype 0002). Complete all the required entry fields (last name, first name, and so on) with data of your choice. Click

to save. In the Create Organizational Assignment screen (Infotype 0001), enter business area [9900] and then click to save. In the screen that appears next, press "Continue" without making any changes. If a warning message appears ("You are entering for payroll past"), press ENTER to skip it. In the next screen, Create Planned Working Time (Infotype 0007), click to save without making any changes. (Again, press ENTER to skip any warning message that might appear.)


Extending the Personnel Master Record to Use CATS Choose menu path Human Resources Personnel Management Administration HR Master Data Maintain (transaction code PA30). Enter your personnel number (110000##) in the Personnel Number field and [2006] in the InfoType field (below). Press enter to display the text for infotype 2006 (it should say "Absence Quotas"). Choose "Current Year" in the Period area. Then click the paper symbol to create an entry. The system proposes the leave entitlement for the employee. Make sure that the employee's leave (type 09) for employee 110000#" is 30 days. Leave the remaining values as they are. Click to save. Enter [0315] in the InfoType field. Press ENTER. You should now see "Time Sheet Defaults". Then click the paper symbol to create an entry. Enter sender cost center [4120], activity type SC-##, and plant [1000]. Click

to save. In the Create Time Recording Information screen (Infotype 0050), enter your personnel number (110000##) as the time recording ID card number. Enter the following values in the required entry fields: Time event type grp: [01] Subsystem Grouping: [001] Grpg. Att./absence: [001] Employee Expenses grpng: [001] Click to save.


Testing the Business Process

Releasing Project To release the project, choose menu path Logistics Project System Project Project Builder (transaction code CJ20N). Your project "W.##" should now appear in your worklist, on the lower left, under "Last Projects Processed". Double-click the project in the worklist to display it.

The project structure now appears in the upper left window. The main window contains the detailed data for the selected top element (W.##). The Status area in the Basic Data tab should show system status [CRTD] (=Created). This is the default status for projects in the PS module after they are created. To actually use a project (enter times and post costs, for example), you have to release it first. To do so, choose Edit Status Release. The system status field should now read [REL]. To display additional status information, click the info symbol to the right of the "Status" field: . The long text appears. When you click the Business processes tab, you see which transactions are allowed in the current status and which are not. To see all the possible transactions, click and scroll down. Click Back to return to the project overview. Click to save the released project. Then click Exit.

Entering Sales Orders with Reference to Project You now have to enter sales orders for the project. You have to create two sales documents:

The first project part, for fixed prices by milestone The second project part for resource-related activities


Creating Order for Milestone Billing Choose menu path Logistics Sales and Distribution Sales Order Create (transaction code VA01). In the next screen, choose sales document type [OR] Standard Order and the following organizational units: Sales organization: [1000] Distribution channel: [10] Division: [00] Press ENTER . The cursor should now be in the active Sold-To Party field. Enter the number of the customer you created previously (CUST2-##) and your computer/group number (##) as the PO number. Select ENTER to confirm your entries. In the Material field, enter the number of the material you created previously (PROJECT-##) and order quantity [1]. Press ENTER to confirm your entries. In contrast to the other case studies which use fixed prices and conditions for each material, the price for this project depends on negotiations for specific project objectives. Therefore, you set the price in the order manually. To do this, select the item with material PROJECT-## (make sure the entire line is highlighted).

Then choose Goto Item Conditions or click the coin symbol below . The Conditions tab opens for item 10. Enter [PR00] in the first white field (the blinking cursor should appear there) in column CnTy (Condition Type) and enter [100,000.00] in the Amount column. Select ENTER to confirm the price. The system recalculates the values based on this entry and should now move the line you just entered with condition type PR00 to the top. You can also see the Output Tax, which was calculated automatically, and the total amount. Note the valid VAT rate in the system: ___________%


Then click on the Account Assignment tab. In field WBS Element, enter the billing element of the fixed-price part of the project that you created previously in the project structure (W.##1). Select ENTER to confirm your entries. This links the order (more precisely, order item 10) with the previously created project structure. You will see the effects of this later in the case study. Now choose the Billing Plan tab: The system shows several billing dates but they originate from an IDES template and are not needed for this case study. In this case study, the billing dates are supposed to correspond to the project milestones, so the invoice can be sent to the customer when a project phase is complete. Therefore, first delete all the displayed billing dates. To do so, click to select all the entries. Then click to delete all the selected dates. The table of the billing plan should now be empty. To generate the dates in accordance with the project milestones, click

. The system proposes the WBS element W.##1 which you linked with the order previously in the Account Assignment view. Click ENTER to confirm. In the next window, the system displays the two milestones for your project. Select both milestones (make sure the lines are completely highlighted) and click . The system adopts both milestones including the planned dates for billing and the billing percentages from the project structure. The Block column should contain the value [02] Confirmation Missing for both items. This ensures that the invoices are not generated until the milestones have actually been reached. When you set the actual date in the corresponding project milestone, these blocks are then removed automatically. Click Back to return to the project overview screen. Press ENTER to skip any message indicating unbilled dates in the past. Click Save and write down the order number assigned by the system (bottom left, in the status bar): Order 1 (milestone billing): __________________


Creating Order for Resource-Related Billing Again, choose menu path Logistics Sales and Distribution Sales Order Create (transaction code VA01). In the next screen, choose sales document type [OR] Standard Order and the following organizational units: Sales organization: [1000] Distribution channel: [10] Division: [00] Press ENTER. Enter the number of the customer you created previously (CUST2-##) in the Sold-To Party field and your computer/group number (##) as the PO number. Select ENTER to confirm your entries. Enter [CONSULT] in the Material field and an order quantity of [1]. Press ENTER. (Note: Your instructor has already created this material master record). The system should determine Hours [HR] as the unit of measure and a price of EUR 200. The consulting hour you entered here is just a "dummy" value at first, because later invoicing will not use this order quantity (here: 1), but instead refer to the actually rendered hours. To link this order with the corresponding project structure, select item 10 again (make sure that the entire line is highlighted). Then choose Goto Item Account Assignment. In the Account Assignment tab, enter the WBS Element that you created for special expenditures (W.##2). Press ENTER to skip any messages indicating that the profitability segment will be re-derived. You now have to make an entry in the Sales B tab, so the system knows that resource-related billing will apply: Click this tab and enter [UCC] in the DIP Profile field in the Control of Resource-Related Billing area. (Note: Your instructor has already created this profile before). Click ENTER to confirm and then click to save your order. Write down this order number as well: Order number 2 (resource-related billing): _______________ Then click Exit.


Entering Project Hours and Vacation Days We will now skip several days and assume that the consultant has worked several days on the project and has also taken a few vacation days. We use the SAP CATS component (short for Cross Application Time Sheet) for time entry. This cross-application component lets you record all types of time data and makes it available to the individual target applications for subsequent processing. Choose the following menu path to enter the time data for your employee: Human Resources Time Management Time Sheet CATS Classic Record Working Times (transaction code CAT2). Enter [1303] as the data entry profile and press ENTER. Enter the number of the employee you created (110000##) as the personnel number and the 1st of the current month as the starting date. Choose Enter Times (or press F5). You now see the recording view of the cross-application time sheet for the current month. Enter the number of the WBS element for the Business Blueprint phase (W.##1.1) in the first white line in the Receiver WBS Element column. Enter 5 hours each on the first two working days of the month in this column and press ENTER to confirm. If an information message appears stating that you should generate a monthly flextime plan, press ENTER to confirm. The system now fills the first two fields (Sender Cost Center and Activity Type) with the default values that you defined previously in the personnel master record for your employee. Now enter the WBS element for special expenditures (W.##2) in the next line in field Receiver WBS Element. Enter 7 hours for the third working day of the month and press ENTER. This assumes that your consultant spent 7 hours on special activities for the customer that are not covered by the fixed-price offer. Now enter the WBS element for special expenditures (W.##2) again in the next line in field Receiver WBS Element. Enter 4 hours for the fourth working day of the month and press ENTER. Because your consultant spent this time working on a module that he was not really familiar with, it would be inappropriate to specify the full senior consultant rate here. Therefore, overwrite the default value in the ActType column, "SC-##", with the activity type for junior consultant hours, "JC-##". Press ENTER to confirm your entries. In the next blank line, enter absence type [0100] Leave in field A/AType.; leave the WBS element field blank. Enter 8 hours each for the 5th and 6th working days of the month and press ENTER to confirm.


The times you enter here are not available to the target applications (HR/PS/CO) until the employee releases them for further processing. To do this, click (below). The release view now appears. To release the recorded times, select the times you previously entered (make sure the entire lines are highlighted). Then click (Release) in the toolbar to release the times. A system message should appear indicating that 6 times were released.

Click to save and to exit the transaction.

Checking the Effects of Time Data in Target Applications

Further Processing of Time Data in HR Choose menu path Human Resources Time Management Administration Information System Report Selection Time Accounts Display Absence Quota Information (transaction code PT_QTA10). Select the Current Year as period and enter your personnel number (110000##) in the corresponding field. Press Execute. The system notifies you of your employee's leave entitlement. If you want to check the progress of the other participants' case studies, go back ( ) to the selection screen and enter personnel number 11000000 to 11000099. Start the report again ( ). You see all the data entered so far regarding leave entitlement and used leave days for the other participants' employees. Note: This absence quota report is an ALV (ABAP List Viewer) report. Reports that utilize this technology allow flexible analysis operations by the user. The ALV function is a powerful, easy-to-use instrument for list formatting. You can change the current display variant (click ) to display and hide fields at runtime, calculate totals and subtotals, create personal display variants, and much more. Then click Exit.


Further Processing of Time Data in PS/CO In contrast to the HR module, the recorded project hours are not forwarded automatically to the CO or PS modules. You have to trigger the transfer and update first. Normally, a controller does so in periodic intervals (in preparation for the month-end closing, for example). During this case study, you will do this for your employee's times yourself. To do so, choose menu path Human Resources Time Management Time Sheet Transfer Accounting (transaction code CAT7). In the next screen, enter your personnel number (110000##) as the selection parameters. Make sure you select your own personnel number [110000##] as you will otherwise transfer the other participants' time data to the CO module as well.

Press Execute.

If you recorded the times as described above, 4 documents should be posted, and the system will report "All data successfully transferred to CO".

Choose Exit. To see the effects of this data transfer, switch to the Project Information System. To do so, choose menu path Logistics Project System Information System Financials. As you will use the Costs/ Revenues/Expenditures/Receipts report frequently, drag it to your list of favorites. Then double-click to start the report. If the system prompts you to enter a Database profile, specify profile [000000000001] Standard Selection (Structure). In the next selection screen, enter the name of your project definition (W.##) in the Project field. Leave all other fields blank (and delete any other field values that were already there), and enter the value [0] in the Plan Version field. Choose Classic Drill-Down Report as the output type and click Execute. The report should display planned revenues in the amount of 100,200.00 EUR and actual costs in the amount of 1,900.00 EUR for the current fiscal year. The planned revenues are based on the (preliminary) value of the two entered sales orders for the project, while the actual costs represent the result of the transfer of the recorded consultant hours. These hours were valuated with the prices of the activity types (17 senior consultant hours at an internal hourly rate of 100 EUR and 4 junior consultant hours at an internal hourly rate of 50 EUR, for a total of 1,900.00 EUR). Click Back to return to the selection screen for the report. Click YES to confirm that you want to exit the report and then double-click the report again in the Easy Access Menu. This time, choose Graphical Report Output as the


report type and start the report again ( ). You can now analyze individual subobjects in the project in more detail by clicking on the hierarchy symbol to expand the project structure:

You see that 1,000.00 EUR was incurred as expenses for the fixed-price part of the project, while 900.00 EUR was incurred under the "Special Expenditures" category. If you want more detailed information about the origin of the costs, start a detailed report. Return to the menu tree and choose path Logistics Project System Information System Financials Costs Plan-Based By Cost Element Actual/Plan/Variance Absolute/Variance %. Drag this report to your favorites list as well. Press to run the report for your project (W.##), controlling area [1000], plan version [0] and the full fiscal year from period 1-12. You now see the origin of the cost elements in more detail. If the left window Variation: Object is displayed, you can double-click parts of the project structure to display the data that belongs to the selected part exclusively. If you double-click on the bottom WBS element for the special expenditures, for example, you only see the costs (and revenues) for this project part. Return to the Easy Access Menu.


Entering Costs for an External Service for the Project

Entering Vendor Invoice You use a subcontractor for the Business Blueprint phase which renders services for the project. You will now assume the function of an accounts payable clerk who records the subcontractor's invoice and assigns it to the project account. To do so, choose menu path Accounting Financial Accounting Accounts payable Document Entry Invoice (transaction code FB60). If you are prompted to enter a company code, choose 1000. If not, you will directly be taken to the Enter Vendor Invoice screen. Enter vendor [1000] in the Vendor field, today's date as the Invoice Date, and 10,000.00 EUR plus Output Tax as the Amount. Set the Calculate Tax flag and press ENTER to confirm. Click in the toolbar. The Templates area opens on the left side. Click and choose Screen Variants for Items. Double-click the Mit Project variant. This changes the line structure of the items in the lower screen area: the WBS Element column now appears as the first account assignment field (second field to the right of the VN control indicator). In the first line, enter G/L acct [417000] Activities Purchased, enter [*] in the Amount in Document Currency field, and "W.##1.1" in the WBS Element field (for the Blueprint phase; the offsetting posting will be in debit, as preconfigured). Press ENTER to confirm, and press ENTER again to skip any system messages that appear. Then click again to hide the templates. A balance of "0.00" should appear in the upper right, which only means that the sum of the credit amounts equals the sum of debit amounts. Accordingly, the document is formally correct and can be posted, as the green traffic light indicates:

Simulate the document before you post it: choose Document Simulate. You now see the postings planned by the system (including the automatically generated input tax posting). Choose Post.


The system displays the number of the document you just posted. Write it down: Document number of vendor invoice: _______________________

Analyzing Actual Costs in Project Information System To view the effects of this vendor invoice in the Project Information System, start the Costs/Revenues/Expenditures/Receipts report (which you saved in your favorites) for your project ( ). The second report in your favorites folder (Actual/Plan/Variance Absolute/Variance %) gives you more detailed information. Start this report for your project again as well.

Conclusion of First Project Phase Your consultants were incredibly fast and effective: the first project phase was completed successfully. Therefore, go to the Project Builder and set the actual date for the milestone for project phase 1: Logistics Project System Project Project Builder (transaction code CJ20N). Open your project W.## in the Project Builder by double-clicking it in the worklist of the last edited projects. Your project appears in the upper left window. Click the structure to expand it until you see the "Blueprint Milestone". Select it (it should be highlighted):

You now see detailed data for the milestone in the right window. Enter the 15th of the current month as the actual date and then click Save. Press ENTER to skip any warning messages that appear. When you save the actual date, this stage is considered complete, and the billing block (02 Confirmation Missing) that was set for the first sales order in the billing plan is removed automatically. As a result, an invoice can be sent for the first project phase. Then click Exit.


Project Billing

Creating Billing Document for Completed Blueprint Phase According to the billing plan for the first sales order, 40% of the order value is due upon completion of phase 1. To create the invoice, choose menu path Logistics Sales and Distribution Billing Billing Document Process Billing Due List (transaction code VF04) Set the Billing Date to field to the 15th of the current month and enter your customer number (CUST2-##) in the Sold-To Party field. In addition, be sure to set the Order-related field below in the Documents to Select area. Note: The billing due list normally contains all the billable transactions at your company as of the selected key date. To keep from billing the other case study participants' orders, you have to restrict selection to your customer. Moreover, because a project is a service (which, in contrast to goods, is not shipped), billing is order-based in this case and not delivery-based (as it is in the logistics integration case study, for example). Choose Display Billing Due List to display the billing due list. The system now displays all the billable documents that meet your selection criteria. Only one line should appear, containing the number of your first sales order in the SalesDoc column. Select this line on the far left, so it is completely highlighted. Click in the toolbar. The system generates the appropriate billing document. If everything worked correctly, the billing document should have a net value of 40,000.00 EUR. Click Save. The system reports that the document was saved. Write down the number of the billing document. Billing document 1 (for milestone 1): ______________________ Click Back repeatedly until you are back in the Easy Access Menu. Now choose Billing Document Display (transaction code: VF03). The number of the billing document you just created should appear automatically in the Billing Document field (if it does not, enter it). Click to display the accounting documents that were generated for the billing document. Double-click Accounting Document in the window that appears. You now see the accounting document that was posted in accounts receivable for customer CUST2-##. Now double-click on the posting item with revenue account 800000, where the net sales were posted. You can see the details for the posting item here. The WBS Element field in the Additional Account


Assignments area should contain the number of the first account assignment element from your project structure (W.##1). This ensures that the realized receipts were actually allocated to your project in Controlling. To verify this, call the two project controlling reports again from your favorites menu. Actual revenues in the amount of 40,000.00 EUR should be allocated to the project. (The minus sign indicates that the revenue posting was made correctly on the credit side, and did not involve costs.)

Creating Resource-Related Billing Document for Special Expenditures

Determining Activities for Billing To bill the consultants' special expenditures on a resource-related basis, choose menu path Logistics Sales and Distribution Sales Order Subsequent functions Resource-Related Billing Document (transaction code: DP91). Now enter the number of your second(!) sales order (see page 4) in the Sales Document field in the selection screen. In the Source area, enter the last day of the current month as the Posting Date to and the current posting period in field Period from. Then click . You now see the expenditure view which contains the expenditures for billing valuated at the internal(!) hourly rate. Click (Expand All Nodes) to see all items for your order. Now double-click on item number /10 in your order (in the upper left). You should see senior hours and junior hours with valuated costs of EUR 700 and EUR 200, respectively. Note that this is merely the internal value base for the hours, and NOT the amount that the customer is billed. Click the Quantity tab [Qty]. You now see the quantity of hours rendered, differentiated by quantity billed, open quantity, and quantity for billing. You could now defer several hours for billing, for example. But we will not do that now. Instead, click to switch to the sales price view. The upper part of the screen now shows a comparison of expenditures and the net value of the activities for billing. In our example, consulting works with a generously calculated profit margin of 100%, which means costs in the amount of 900.00 EUR are offset by net revenues in the amount of 1,800.00 EUR. Expand the debit memo request line several times and examine the individual items.


Double-click the Senior Consultant Hours line. The system displays the detailed determination of the sales price for each consultant hour in the lower part of the screen. The upper part of the screen (condition type PR00) shows that senior consultant hours are billed externally at a rate of EUR 200 per hour.

Creating Debit Memo Request

To start the invoice creation process, click . When the system asks whether you really want to create the request, answer YES. A debit memo request is created. This debit memo request is merely an internal document at first which serves as a template for creating the actual customer billing document in the next step. Under the default settings, new debit memo requests are initially blocked for billing, to enable them to be checked again. To delete the block immediately, change the entry in the Billing Block field to blank instead of the default value, Check Debit Memo:

Now try to save the debit memo request with . The system may report that the document is incomplete, because configuration settings may require an order reason for debit memo requests. In this case, click Edit:


The incompleteness log appears.

Double-click the Order Reason line to display the screen for completing the order reason. Select an order reason of your choice and click Back. The system reports that your document is now complete. Save the debit memo request with and write down the number assigned by the system: Debit memo request: _________________________

Creating Billing Document for Customer Choose menu path Logistics Sales and Distribution Billing Billing Document Process Billing Due List (transaction code: VF04) Enter the last day of the current month in the Billing Date to field and the number of the debit memo request you just created in the Sales Document field. Also set the Order-related field below in the Documents to be selected area. Then choose . Once again, the next screen should only contain one line: your debit memo request. Click again. The system generates a debit memo with the corresponding items for the consultant hours. Click to save it. Write down the number of the debit memo: Debit memo document number: __________________________ To display the debit memo you just created, click Back repeatedly to go back to the Easy Access Menu. Now choose Billing Document Display (transaction code VF03). The number of your debit memo should already appear in the Billing Document field (if it does not, enter it). Now choose menu path Billing Document Issue Output To.


The system proposes output type [RD00] Invoice. In the Output Message screen, click the button (or Ctrl+Shift+F1).

The print preview for your debit memo is displayed. You can scroll down to see the individual activities in detail. Choose Exit.


Period-End Closing in Project Controlling Some projects require a few closing activities in project controlling for profitability reporting, particularly in long-term projects. This is demonstrated for revenue-based profitability determination in this case study.

Analyzing Project Values Call the second project controlling report (Actual/Plan/Variance Absolute/Variance %) again in your list of favorites. Enter the following data in the selection screen: Project: (None) WBS Element: W.##2 (billing element for special expenditures) Network: (None) Activity: (None) Material: (None) Enter controlling area [1000], planning version [0], the current fiscal year (from and to) and the current period (from and to). Press Execute. You now see the controlling values for the Special Expenditures part of the project. You should see the costs for the consultants, as well as the receipts in the amount of 1,800.00 EUR for their activities, which you just posted. Then click Back. When asked whether you want to exit the report, press ENTER. Now change the value for the WBS element in the selection screen. Enter the billing element for the fixed-price part of the project (W.##1). Press Execute again. Write down the values posted so far (actual): Costs: Purchased services: ______________________ Senior Consultant: ______________________ Receipts: Domestic Sales Revenues: ______________________


You should see total revenues in the amount of 40,000.00 EUR and costs in the amount of 11,000.00 EUR. The planned revenues should appear as 100,000.00 EUR (this is the total value of your first sales order, of which the remaining 60,000.00 EUR has not been billed yet).

Entering Settlement Rules for WBS Elements To periodic settlement of the costs and receipts collected in the project, each cost-bearing WBS element requires a settlement rule in which the receiving CO objects are defined.

Settlement Rule for First Account Assignment Element You will first enter the settlement rule for the account assignment element for the fixed-price part (W.##1). Because you linked this WBS element with a sales order, the SAP system can generate the settlement rule nearly automatically, since the default account assignments can be taken from the order in this case. Choose Accounting Project System Financials Period-End Closing Single Functions Settlement Rule Individual Processing (transaction code CJB2). Enter the following values: Sales Document: (None) Project: (None) WBS Element: W.##1 Also select the current period in the current fiscal year. Uncheck the Test Run indicator and select Detail Lists. Press Execute. The system should report that one object was processed. Click in the toolbar to display the next list level. The system should have selected Profitability Segment as the account assignment category.


Modify the Settlement Rules of WBS Elements Call the Project Builder again. Double-click your project W.## under Last Projects Processed in the Worklist area. Select WBS element W.##1 in the upper left window and then choose Edit Costs Settlement Rule. The next screen should only contain one line with a 100% settlement receiver, "Profitability Segment". Double-click this line. In the next screen, Maintain Settlement Rule: Distribution Rules, click to display the account assignment of the profitability segment. As you can see, the system copied the customer, the sales order number, and other data from your sales order to the settlement rule automatically in the previous step. Click and then Back twice to return to the Project Builder overview. In the right screen area, choose the Control Data tab for your account assignment element W.##1. The Accounting area should display results analysis key [SERV]. Overwrite this value with [130000] PS: Revenue-Based (Accr. Top Element). Press ENTER to confirm your entries. Now expand your project in the upper left screen area so the WBS element for the Business Blueprint phase (W.##1.1) is visible. Select this element and choose Edit Costs Settlement Rule. Enter profile [10] All Receivers in the Settlement Profile field and press ENTER. Now click to specify the receiver objects. The Maintain Settlement Rule: Overview screen appears. In the first line, enter WBS Element [WBS] as category and your account assignment element W.##1 as the settlement receiver. Then press ENTER. This entry ensures that the costs of the subordinate project phases can be allocated to the account assignment element. Choose Back to return to the Project Builder. As you can see, the WBS element now has status Settlement Rule Entered as well (Basic Data tab). Save your project structure with .

Performing Calculation of Profits for Fixed-Price Part of the Project In this example, you want to valuate the project with revenue-based calculation of profits. According to this method, receipts are considered to be realized once they've actually been billed to the customer. In contrast, the


corresponding costs are not identified from the point when they are incurred, but instead proportionally with realization of the receipts. In our example, only 40% of the planned revenues (40,000.00 EUR out of 100,000.00 EUR) have been billed so far. Accordingly, only 40% of the corresponding costs should be identified as well (thus the term "revenue-based"). The SAP System can perform this valuation step automatically. To do so, choose menu path Accounting Project System Financials Period-End Closing Single Functions Results Analysis Proceed Individual Processing (transaction code KKA2). In the selection screen, choose: WBS Element: W.##1 Period: Current period Fiscal year: Current fiscal year Results analysis key: 0 In addition, select the Full Log indicator at the bottom and press Execute. The calculated project result now appears, and should look like this:

Explanation of the values: Actual data: The data posted so far is listed for information purposes. Planning data: The planning data is listed again for information purposes. Note: Because we did not plan any costs in this case study, the system uses the actual costs here.


Cost accounting result: This area shows the actual valuation part, which the system calculated. Because only 40% of the planned revenues of 100,000.00 EUR have been billed so far, only revenue affecting net income in the amount of 40,000.00 EUR is reported. It is offset by 4,400.00 EUR in costs affecting net income. This corresponds to exactly 40% of the actual costs incurred so far, in the amount of 11,000.00 EUR. Accordingly, the system shows a cost accounting result of 35,400.00 EUR at this point. Because the other costs have already been posted in Financial Accounting, but should not affect net income yet, you have to make an accrual posting to correct them. You make this accrual posting to the "Capitalized Costs" account. The value of this posting corresponds to the "Work in Process" line, with 6,600.00 EUR, as the difference between the actual costs (11,000.00 EUR) and the costs affecting net income (4,400.00 EUR). The values calculated here can now be posted automatically to FI (Financial Accounting) and CO-PA (Profitability Analysis) modules for settlement correction in the SAP system. Unfortunately, company code 1000 of our IDES sample company is not configured to do this, so we will limit ourselves to merely displaying the calculated data. For more information about the individual value categories, choose Logs Explanation. Note: The revenue-based calculation of profits demonstrated here is only one of 16 possible valuation methods in SAP ERP. Other possible methods include "Percentage of Completion" (allowed under US GAAP accounting rules), completed contract, project progress, resource-related billing, and many more. Moreover, SAP ERP even supports the parallel valuation of the same project according to different valuation methods, for example, valuation of a German closing compliant with the German commercial code (HGB) and a simultaneous value approach for an additional closing in accordance with US-GAAP. But since you've probably just finished the longest SAP ERP case study you've ever performed, we'll leave it at that. Congratulations, you have now successfully completed the PS integration case study! Several of the ideas in this case study are based on materials developed by Mr Martin Vo (University of Passau) and Mr Heino Schrader (SAP AG), whose work is acknowledged here. This publication or parts thereof may only be disclosed to or reproduced by faculty members of institutions connected to SAP University Competence Centers, for use in teaching. Material may not be disclosed in digital form. Any changes to the content of the case study, or any changes made to the case study texts minor or otherwise must not distort the origin of the intellectual property, as input in person by SAP UCC and Stefan Weidner (SAP UCC Magdeburg). Should you have any questions, please contact the author. SAP, the SAP logo, the R/3 System, and any other SAP products and services mentioned in this text, including the relevant logos, are trademarks or registered trademarks of SAP AG in Germany and internationally. All other names of products and services are trademarks of the companies in question.

SAP PS-HR Casestudy

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