fi integration

8/13/2019 FI Integration

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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



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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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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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cProjects 4.0

xRPM 4.0




8/36 SAP AG 2006, Title of Presentation / Speaker Name / 8

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.



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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cProjects 4.0

xRPM 4.0





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



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



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?



Actual Costs on Projects

Y

X

Availability

control

Costs,

RevenuesDates

Integration

AMAM

FIFICOCO

SD

PM

MM

PP

Payment

data

Resources

HR

PSPS



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?



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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cProjects 4.0

xRPM 4.0




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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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cProjects 4.0

xRPM 4.0



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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cProjects 4.0

xRPM 4.0

Questions and Limitations


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

fi integration

Documents