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Sales Pricing

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Unit 4: Planning PLM200

Lesson:

130

Cost and Revenue Planning

Lesson Duration: 120 Minutes

Lesson Overview

This lesson gives you an overview of the different ways for planning costs andrevenues for projects. In particular, you will learn how to use the Easy CostPlanning tool to plan costs for WBS elements and network costing. This lessonalso looks at the Sales Pricing tool, which you can use to determine sales pricesfrom the planned costs for your project, plan revenues, or create customerquotations. You will also be shown how to plan revenues for projects usingbilling plans in sales orders.

Lesson Objectives

After completing this lesson, you will be able to:

� Name different methods for planning project costs and revenues

� Plan costs using Easy Cost Planning for a work breakdown structure

� Explain the concept behind network costing

� Name the sales pricing functions

� Carry out project revenue planning using sales orders

For an explanation of the content of this lesson, see �Lesson Objectives� and�Business Example�.

Business Example

You want to manually plan the material costs, activity allocations, and so on,for your elevator construction project (investment project E-99##).

The costs for project T-200## are determined automatically by means ofnetwork costing. Use a general costs activity to plan further project costs.Use sales pricing to plan the revenues for the project on the basis of theseplanned costs and create a customer quotation. The sold-to party acceptsyour quotation for constructing the turbine system. Sales and Distributionwill create a sales order that will be used to plan revenues and then carryout billing.

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PLM200 Lesson: Cost and Revenue Planning

Cost Planning

You can plan costs for a project in SAP Project System (SAP PS) using twodifferent methods:

� Manual cost planning in the work breakdown structure

� Cost planning using activities (network costing)

Manual planning in the WBS involves:

� Overall planning: The most basic form of cost planning whereby thecosts for each WBS element are entered. You can break down yourfigures by fiscal year if you wish.

� Detailed planning of primary costs and activity inputs: This type ofplanning is based on cost elements and periods.

� Unit costing: For each WBS element, you use a scheme for enteringquantities (materials, internal activities, external activities, variable items,and so on). This type of planning is based on cost elements.

� Easy Cost Planning: Easy Cost Planning is a user-friendly method forcarrying out cost element-based cost planning by means of a quantitystructure. You can then use Execution Services to enter commitment andactual data relating to the planned costs.

In addition to manual planning in the WBS, you can assign different types oforder (internal orders or maintenance orders, for example) to WBS elementsthat are flagged as account assignment elements. This assignment can then beused to display the planned costs of the orders for the project. You can alsoassign activities to WBS elements and plan costs using these activities. Thebenefit of this planning method is that it can be copied to a new project and, ifparts of the project are moved, cost planning is moved automatically alongwith the activities. In addition, planning by means of network activities is costelement and period based.

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Unit 4: Planning PLM200

Figure 42: Cost Planning in Projects

Demonstration: Optional: Overall and Detailed Planningof Costs for WBS Elements

Purpose

Give a short demonstration of how overall and detailed cost planning iscarried out for WBS elements in project E-9920. Actual cost planning by meansof Easy Cost Planning, however, is carried out in the next demonstration.

System Data

System:Client:User ID:Password:Set up instructions:

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PLM200 Lesson: Cost and Revenue Planning

1. Optional: Give the participants a short demonstration of how costplanning is carried out using the overall and detailed planning functions.Use project E-9920. Exit cost planning without saving your data.

Easy Cost Planning is a user-friendly tool that enables you to plan costs forWBS elements. You can access Easy Cost Planning for projects from theProject Builder. You choose a WBS element from the structure and then createcosting items for this WBS element. Cost planning by means of Easy CostPlanning is cost element based. The cost planning periods are determinedfrom the basic start date of the WBS element. To enter costing items, youcan also use planning forms (see Fig. �Easy Cost Planning�). When you dothis, characteristics (work in hours, for example) are valuated (with 100,for example). The characteristic values from the planning form are linkedto quantities, values, or actions in the costing items (in Fig. �Easy CostPlanning�, for example, to the quantity of an internal activity). Once youhave transferred the values, the costing items appear under the relevant WBSelements in the structure.

Easy Cost Planning can be used as a simple preliminary costing for projects.The pre-planned costs are then replaced, for example, by a quantity structureof networks/activities. You can also use Easy Cost Planning to create plandata for the project execution phase. In this case, you can then use ExecutionServices to enter commitment and actual costs for the planned costs. InCustomizing, you define the plan version in which values planned by EasyCost Planning are stored.

From SAP R/3 Enterprise PLM Extension 2.00, you can create severalalternative plans in Easy Cost Planning. To do this, you must define andactivate alternative CO versions in Customizing.

On the initial screen for Easy Cost Planning, the user can then selectappropriate CO versions, or also copy versions.

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Unit 4: Planning PLM200

Figure 43: Easy Cost Planning

Demonstration: Easy Cost Planning

Purpose

Plan costs for project E-9920 using Easy Cost Planning. Use the appropriateplanning forms. Analyze the cost planning periods using a hierarchy report.

System Data

System:Client:User ID:Password:Set up instructions:

1. Open project E-9920 in the Project Builder and call up Easy CostPlanning. Confirm the proposed costing variant (PS06) by choosingCreate Cost Estimate.

2. For WBS element E-9920-1 (Engineering), choose planning form ZPS101

and valuate the characteristics Internal Labor Hours and AdditionalCosts, for example, with 100 hours and EUR 6,500.

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PLM200 Lesson: Cost and Revenue Planning

3. Call up the item view so that you can enter an additional item (itemcategory E, resource 4295, plant/activity type 1463, and quantity 10hours) manually. Copy the item to your costing data.

4. Use planning forms ZPS102 and ZPS103 to plan costs for WBS elementsE-9920-2 (Procurement) and E-9920-3 (Assembly).

5. In the item view, plan costs for WBS element E-9920-4 (Acceptance)manually. Use the following data: Item Category M, Resource B-1000(Office Materials - Folders), Plant/Activity Type 1000, Quantity 5; ItemCategory E, Resource 4295, Plant/Activity Type 1426, Quantity 4 hours.

6. Exit Easy Cost Planning and save the changes you have made to projectE-9920.

7. Use the hierarchy report Plan/Actual/Commitment/Rem.Plan/Assigned inthe information system of Project System to analyze the planned costs forproject E-9920. Discuss how the planned costs have been assigned tothe different periods.

The participants should now carry out the first task (�Easy Cost Planning �Project E-99##�) of the �Cost and Revenue Planning� exercise. Carrying outthe analysis by means of a hierarchy report is optional. The task should takeno longer than 20 minutes.

When you plan dates and resources in network activities, the systemautomatically determines the corresponding planned costs as part of networkcosting. Planned costs are determined for the following objects:

� Activity inputs for internally-processed activities (internal activity)

� Primary costs for externally-processed activities and service activities(external service)

� Primary costs for general costs activities

� Primary costs for material components

Activity elements are costed as if they were activities.

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Unit 4: Planning PLM200

Figure 44: Network Costing

Demonstration: Network Costing

Purpose

Explain how costs are planned by means of activities using project T-20020in the project planning board as an example. Create an additional generalcosts activity. Optional: Analyze the planned costs using a cost element orhierarchy report.

System Data

System:Client:User ID:Password:Set up instructions:

1. Open project T-20020 in the project planning board. Call up theCosts Planned/Actual report from the detailed data for activities 1400(Engineering of Rotating Blades) and 3000 (Preliminary Orders) and discussthe planned costs.

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PLM200 Lesson: Cost and Revenue Planning

2. Create general costs activity 1050 with the description AdditionalCosts for WBS element T-20020.1 (Engineering). Plan costs for theactivity, either manually or by means of unit costing (costing variantPS05).

3. Determine the costs for the entire project and demonstrate the costoverview for WBS element T-20020. Save the changes you have madeto your project.

4. Optional: Use hierarchy report Plan/Actual/Commitment/Rem.Plan/As-signed or cost element report Z6P1 (transaction GR55) to explain theplanned costs for project T-20020.

Sales Pricing

You can use the sales pricing function to determine sales prices for a customerinquiry on the basis of the project cost plan. When doing so, you can alsosave different cost estimates and process them later. You can also save salespricing data as customer quotations and create more than one quotation. Inthe standard system, document type AP is used for project quotations. As analternative or in addition to the above, you can transfer the sales pricing datato a billing plan in the project so that it can be used for revenue planning.

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Unit 4: Planning PLM200

Figure 45: Sales Pricing

Demonstration: Sales Pricing

Purpose

Demonstrate the sales pricing functions using sales project T-20020. Use thestructure information system to keep track of changes.

System Data

System:Client:User ID:Password:Set up instructions:

1. Change the customer inquiry you created when demonstrating how tocreate a customer inquiry and project T-20020. Assign the inquiry item toWBS element T-20020. On the Sales B tab page in the detail data for theitem, define DIP profile 13000001. Save the altered inquiry.

2. In a second session, use the structure information system to demonstratehow customer inquiries are linked to project T-20020.

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PLM200 Lesson: Cost and Revenue Planning

3. Start sales pricing for project T-20020 from the Project System menu.Expand the overview tree in the Sales Price Basis screen and discussthe data.

Optional: Change the hierarchy by swapping the sequence of thecharacteristics Cost Element and Object Number.

4. In the lower part of the table (double-click an object description in theoverview tree), change the transfer quantity or transfer amount for anitem and block the entry.

5. Call up the sales price view. Expand all the nodes and call up theconditions for the top node (Project Quotation). Add a new condition(HA00) with the amount 10 % as a header surcharge.

6. From the sales pricing data, enter a billing plan for WBS element T-20020with an item for the final invoice for 100 % on the billing date: today +

6 months. Save your sales pricing data along with the following shorttext, for example: Turbine Gr20.

7. Call up your sales pricing data again to create a quotation. The quotationis to be valid until today + 1 week.

8. In the second session, use the structure information system todemonstrate the changes. Optional: From the report, call up thequotation and demonstrate the conditions for the quotation item.

The participants should now carry out the second task (�Cost Planning viaActivities � Project T-200##�) of the �Cost and Revenue Planning� exercise.Carrying out the analysis by means of a hierarchy report is optional. Theexercise should take approximately 10 minutes.

Optional: If required and if enough time is available, the participants can nowcarry out task 3 (�Customer Inquiry and Sales Pricing � Project T-200##�). Thetask should take approximately 15 minutes.

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Unit 4: Planning PLM200

Revenue Planning

The following methods can be used to plan revenues in your project:

� Manual revenue planning (structure-oriented, or on the basis of revenueelements). The latter of the two is revenue element and period based.

� Revenue planning using PS billing plans. This type of planning isrevenue element and period based.

� Revenue planning using SD documents (sales order items or evenquotation items). This type of planning is revenue element and periodbased.

Figure 46: Revenue Planning

The �Sales Order and Billing Plan� diagram illustrates how revenues areplanned with SD documents.

The customer has placed an order for project T-200##. You have agreed asales price of EUR 880,000 with the customer. Partial payments are due onceproduction (activity 4000) and assembly (activity 5000) are complete. Youenter this information in the system by defining billing milestones for theactivities.

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PLM200 Lesson: Cost and Revenue Planning

You then create a sales order in the system and a billing plan for the item. Youcopy the billing milestones for activities 4000 and 5000 to the billing plan. Youassign the sales order item to the project billing element. This assignmentforms the basis for planning revenues in your project.

In the project execution phase, the locks for the individual items in the billingplan are lifted automatically when activities 4000 and 5000 are confirmed.After a billing run, actual project revenues can also be updated in this wayautomatically (see lesson �Milestone Billing and PS Cash Management�).

Figure 47: Sales Order and Billing Plan

Demonstration: Revenue Planning via Sales Order Items

Purpose

Demonstrate how revenues can be planned for project T-20020 using a salesorder. Before proceeding, delete the billing plan that has already been created.Use the structure information system to keep track of changes.

System Data

System:

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Client:User ID:Password:Set up instructions:

1. In the Project Builder, for example, delete the billing plan you created forWBS element T-20020 in the previous demonstration. Demonstrate thechange in the second session (structure information system).

2. In the SD menu, create a sales order for order type PS1 (salesorganization: 1000, distribution channel: 10, and division: 00) forsold-to party 1600 for material T-20000.

3. Assign the item to WBS element T-20020 and define the value EUR880,00 as condition PR00. Copy the project milestone data to the billingplan for the item.

4. Save the sales order and refresh the structure information system in thesecond session to discuss the changes you have made.

5. Use the hierarchy report Plan/Actual/Variance to analyze the plannedrevenues for project T-20020 and expand the report according toPeriod/Year.

The participants should now carry out the fourth task (�Sales Order andRevenue Planning � Project T-200##�) of the �Cost and Revenue Planning�exercise. Carrying out the analysis by means of a hierarchy report is optional.The exercise should take approximately 15 minutes.

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PLM200 Lesson: Cost and Revenue Planning

139 Exercise 9: Cost and Revenue Planning

Exercise Duration: 60 Minutes

Exercise Objectives

After completing this exercise, you will be able to:

� Plan costs using Easy Cost Planning for WBS elements

� Plan costs using network activities and analyze them in the projectplanning board.

� Optional: Carry out sales pricing.

� Plan revenues for projects using sales documents.

� Optional: Analyze costs and revenues with hierarchy reports.

Business Example

You will plan costs manually for investment project E-99## using Easy CostPlanning. To facilitate the planning process, planning forms are used thathave already been maintained in the system.

For customer project T-200##, the costs are planned using the quantitystructure for the activities. The quotation is created on the basis of the projectcost planning data. This involves rearranging the planned costs according tocost elements/activity types and copying them as items in the quotation.

The customer accepts your quotation. In SD, a sales order is then created andassigned to project T-200##. In a billing plan for the order item, you storethe dates on which payment is due from the customer. You can evaluate thevalues in the order as planned project revenue.

Hint: In the following tasks, ## indicates your group number (## =01, 02, and so on).

Caution: The exercises for the PLM200 course are progress based.Errors in one exercise may result in errors and problems in subsequentexercises. For this reason, only participants with a good knowledge ofSAP R/3 should carry out the exercises without the aid of the solutions.All other participants should refer directly to the solutions whencarrying out the individual exercise steps.

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Unit 4: Planning PLM200

Task 1: Easy Cost Planning � Project E-99##

Plan costs for WBS elements at level 2 of investment project E-99##. To doso, use Easy Cost Planning and, if necessary, planning forms maintained inthe system.

Optional: Analyze the costs using a hierarchy report.

1. Open project E-99## in the Project Builder. Call up Easy Cost Planning andcreate a cost estimate using the proposed costing variant.

Display the item view. Plan costs for WBS elements E-99##-1 Engineering,E-99##-2 Procurement, and E-99##-3 Assembly. To do so, select the relevantWBS element in the costing structure and choose a suitable planningform (for example, display the list of all the planning forms and choosethe appropriate planning form for elevators, ZPS101, ZPS102, or ZPS103).

For Engineering (WBS element E-99##-1), use the planning form to plancosts for 100 internal labor hours and additional costs of EUR 6,700.

For WBS element E-99##-2, plan procurement costs for an elevator witha labor capacity 10, elevator location USA, and elevator cabin walls made ofMetal.

For WBS element E-99##-3, use the planning form to plan costs for 120assembly hours.

A planning form does not exist in the system for Acceptance (WBSelement E-99##-4). For this WBS element, plan two items in the itemview manually. Use item category E (internal activity) to plan costs for anactivity input of 10 hours from cost center (resource) 4295 for activitytype 1463. Plan material costs (item category M) for 10 pieces of thematerial (resource) B-1000 (Office Material - Folders) from plant 1000.Copy the items to your cost estimate.

Then return to the Project Builder and save your cost planning data.

2. Optional: Use the hierarchy report Plan/Actual/Commitment/Rem.Plan/As-signed, which is based on the planned costs, in the Project Systeminformation system to analyze the costs that you have planned for projectE-99##. Expand the data according to value categories and period/year.Then exit the report.

Continued on next page

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PLM200 Lesson: Cost and Revenue Planning

Task 2: Cost Planning via Activities � Project T-200##

Costs for customer project T-200## are planned by means of the quantitystructure for the project activities. In addition to costs for internal/externalactivities and materials, you now want to plan additional primary costs usinga further general costs activity and analyze the calculated costs in the projectplanning board.

Optional: Use a hierarchy report to analyze the planned costs for projectT-200##.

1. Open project T-200## in the project planning board. Create a costsactivity with the activity number 1050 and the description AdditionalCosts for WBS element T-200##.1 Engineering and Design. Use thisactivity to plan costs amounting to EUR 4,000 for the proposed costelement (466000).

Redetermine the costs for the entire project (with new dates). Analyze theaggregated costs for the level-1 WBS element (T-200## Turbine) using thegraphical cost overview in the project planning board. Save the changesyou have made to your project and return to the SAP menu.

2. Optional: Use the hierarchy report Plan/Actual/Commitment/Rem.Plan/As-signed, which is based on the planned costs, in the Project Systeminformation system to analyze the updated costs for project T-200##.Expand the data according to value categories and period/year. Then exitthe report.

Task 3: Optional: Customer Inquiry and Sales Pricing �Project T-200##

Optional: In SD, create a customer inquiry and link the document to projectT-200##. Use the planned costs for the project to create sales pricing data and acustomer quotation.

Hint: You normally create the customer inquiry in SD before creatingsuitable project structures in Project System.

1. In Sales in SD, create a customer inquiry. In the initial screen, enterinquiry type IN (Inquiry), sales organization 1000, distribution channel 10,and division 00. The sold-to party has the customer number 1600.The inquiry is to be valid for one month from today. Enter an item formaterial S-1300. Enter Turbine System as the description and orderquantity 1.

Continued on next page

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Unit 4: Planning PLM200

Assign this inquiry item to project T-200##. To do so, enter WBS elementT-200## on the Account Assignment tab page in the detailed data forthis item. On the Sales B tab page, enter DIP profile 13000001. Thisprofile is later used to control your sales pricing. Save the inquiry andreturn to the SAP menu.

2. Now use the sale pricing data to create a customer quotation. To do so,create sales pricing data for customer project T-200## in the ProjectSystem menu. First call up the sales price basis. In this screen, expandall the nodes in the structure and double-click Primary Costs to displaydetails on them.

Then call up the Sales Price screen. Display the conditions for thequotation header (Project Quotation) and enter a transfer price surchargeof 10 % with condition type HA00.

To conclude, create a corresponding quotation. When doing so, enterQuotation Gr## as the short text for sales pricing. Finally, return tothe SAP menu.

Task 4: Sales Order and Revenue Planning � ProjectT-200##

The customer accepts your quotation. Create an appropriate sales order inSD and assign the SD document to project T-200##. Enter different paymentdates in a billing plan for the sales order items. Use your project milestoneswhen doing so. Analyze the order values as planned project revenues in theProject System information system.

1. Create a sales order in SD. Enter the following data: order type PS1,sales organization 1000, distribution channel 10, and division 00. Thesold-to party number is 1600 with the order number Gr##. Therequired delivery date is today + 8 months. Enter an item for materialT-20000 with an order quantity of 1.

Hint: When creating the sales order, you can use existingquotations as a template. In this exercise, however, you will notuse a template to create the sales order.

Assign the order item in the detailed data for the item to WBS elementT-200## (Account Assignment tab page). On the Conditions tab page,change the item sales price manually by increasing the amount forcondition type PR00 to EUR 880,000.

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PLM200 Lesson: Cost and Revenue Planning

Then create a billing plan (Billing Plan tab page) for the item. To do so,select all the milestones that are selected via WBS element T-200## andcopy the milestone dates to the billing plan.

Note the dates and values in the billing plan in the following table sothat you can compare them later with the planned revenues in theinformation system.

Billing Date Billing Value

Return to the item overview and save the sales order. Exit the screenfor processing sales orders.

2. Optional: Use the hierarchy revenue report (Planned ContributionMargin) in the Project System information system to analyze the plannedrevenues for project T-200## (if necessary, delete the sales order numberfrom the selection screen). Expand the data according to Period/Year andthen compare the displayed data with the dates and values in the billingplan for the sales order item that you noted in the previous step. Thenreturn to the SAP menu.

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Solution 9: Cost and Revenue Planning

Task 1: Easy Cost Planning � Project E-99##

Plan costs for WBS elements at level 2 of investment project E-99##. To doso, use Easy Cost Planning and, if necessary, planning forms maintained inthe system.

Optional: Analyze the costs using a hierarchy report.

1. Open project E-99## in the Project Builder. Call up Easy Cost Planning andcreate a cost estimate using the proposed costing variant.

Display the item view. Plan costs for WBS elements E-99##-1 Engineering,E-99##-2 Procurement, and E-99##-3 Assembly. To do so, select the relevantWBS element in the costing structure and choose a suitable planningform (for example, display the list of all the planning forms and choosethe appropriate planning form for elevators, ZPS101, ZPS102, or ZPS103).

For Engineering (WBS element E-99##-1), use the planning form to plancosts for 100 internal labor hours and additional costs of EUR 6,700.

For WBS element E-99##-2, plan procurement costs for an elevator witha labor capacity 10, elevator location USA, and elevator cabin walls made ofMetal.

For WBS element E-99##-3, use the planning form to plan costs for 120assembly hours.

A planning form does not exist in the system for Acceptance (WBSelement E-99##-4). For this WBS element, plan two items in the itemview manually. Use item category E (internal activity) to plan costs for anactivity input of 10 hours from cost center (resource) 4295 for activitytype 1463. Plan material costs (item category M) for 10 pieces of thematerial (resource) B-1000 (Office Material - Folders) from plant 1000.Copy the items to your cost estimate.

Then return to the Project Builder and save your cost planning data.

a) Open project E-99## in the Project Builder. To do so, choose SAPMenu → Accounting → Project System → Project → Project Builder

and then choose project E-99## Elevator Gr## in the worklist. To

display all of the WBS elements, choose Expand All.

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PLM200 Lesson: Cost and Revenue Planning

To call up Easy Cost Planning, choose Easy Cost Planning.

Confirm the data in the following dialog box by choosing CreateCost Estimate.

The costing structure is displayed on the left of the screen. Plannedvalues do not exist yet. To enable you to analyze details on costing

items at a later stage, choose Show/Hide Item View.

Hint: In the following steps, you can only plan costs forWBS elements that have been flagged as planning elements.If you have not flagged all of the level 2 WBS elements asplanning elements, you first have to return to the ProjectBuilder and select the Planning Element operative indicatorfor these WBS elements.

b) Select WBS element E-99##-1 (Engineering) in the costing structureand choose Choose Planning Form. To display a list of all the planning

forms, choose Start Search. In the list, select costing model ZPS101

Elevator: Engineering and confirm your selection by choosingCopy.

Then enter the following characteristic values in the planning form:

Field Name Values

Internal Labor Hours 100

Additional Costs (Euros): 6,700

Choose Confirm. In the costing structure on the left, various itemsare displayed under the WBS element along with the differentplanned values. Detailed data for the individual items is displayedin the item view in the bottom right of the screen.

Hint: In the item view, you can add further items manuallyand copy them to the cost estimate.

c) Following the same procedure as before, create a cost estimate forWBS element E-99##-2 (Procurement). Select the WBS element inthe costing structure and choose planning form ZPS102 Elevator:Procurement.

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Then enter the following characteristic values in the planning form:

Field Name Values

Labor Capacity 10

Elevator Location USA

Elevator Cabin Walls Metal

Choose Confirm.

d) Following the same procedure as before, create a cost estimatefor WBS element E-99##-3 (Assembly). Select the WBS element inthe costing structure and choose planning form ZPS103 Elevator:Assembly.

Then enter the following characteristic value in the planning form:

Field Name Values

Assembly Hours 120

Choose Confirm.

e) A predefined planning form does not exist for WBS element E-99##-4(Acceptance). To plan costs for Acceptance, select the WBS element

in the costing structure and choose Append Row on the right in the

item view (if necessary, display by choosing Show/Hide Item View). Enter the following data in the two empty rows in the item view:

ItemCategory

Quantity Resource Plant/Activity Type

E 10 4295 1463

M 10 B-1000 1000

Confirm your entries with Enter and then choose Confirm.

Exit Easy Cost Planning and save the changes you have made to

your project by choosing Back and Save. To exit the Project

Builder, choose Exit.

Continued on next page

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PLM200 Lesson: Cost and Revenue Planning

2. Optional: Use the hierarchy report Plan/Actual/Commitment/Rem.Plan/As-signed, which is based on the planned costs, in the Project Systeminformation system to analyze the costs that you have planned for projectE-99##. Expand the data according to value categories and period/year.Then exit the report.

a) To start the hierarchy report, choose Project System → InformationSystem → Financials → Costs → Plan-Based → Hierarchical →

Plan/Actual/Commitment/Rem.Plan/Assigned. Enter E-99## in the

Project field on the selection screen and choose Execute.

The planned costs are displayed sorted according to the individualWBS elements. To carry out an analysis according to valuecategories, choose Value Category on the left in the navigation panel.To expand the display according to periods, choose Period/Year inthe navigation panel.

To exit the report, choose Back and confirm the dialog box withYes.

Task 2: Cost Planning via Activities � Project T-200##

Costs for customer project T-200## are planned by means of the quantitystructure for the project activities. In addition to costs for internal/externalactivities and materials, you now want to plan additional primary costs usinga further general costs activity and analyze the calculated costs in the projectplanning board.

Optional: Use a hierarchy report to analyze the planned costs for projectT-200##.

1. Open project T-200## in the project planning board. Create a costsactivity with the activity number 1050 and the description AdditionalCosts for WBS element T-200##.1 Engineering and Design. Use thisactivity to plan costs amounting to EUR 4,000 for the proposed costelement (466000).

Redetermine the costs for the entire project (with new dates). Analyze theaggregated costs for the level-1 WBS element (T-200## Turbine) using thegraphical cost overview in the project planning board. Save the changesyou have made to your project and return to the SAP menu.

a) Open project T-200## in the project planning board. To do so, chooseProject System→ Project → Project Planning Board → Change Project

and choose T-200## Turbine Gr## in the worklist.

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Unit 4: Planning PLM200

To create a new activity for WBS element T-200##.1, select WBSelement T-200##.1 Engineering and Design on the left in the table area

of the project planning board and then choose Create.

The system displays a window on the left containing differenttemplates. Choose the activity (not the activity element) Individual

Objects → Activity → Costs. In the project planning boardoverview, a new activity has been created under WBS elementT-200##.1 Engineering and Design. Close the template area by

choosing Open/Close Left-Hand Window.

To call up the detail screen, choose the new activity in the table area.Change the costs activity data as follows:

Field Name Values

Activity 1050

Text (without caption) Additional Costs

Amount 4,000

Leave other fields as they are

To return to the overview in the project planning board, choose

Back.

b) Calculate the project costs again. To do so, select all the WBS

elements and activities with Select All and then chooseCalculate Costs. When doing so, update the project dates by choosingYes in the dialog box for cost calculation.

Hint: In the table area of the project planning board, youcan already see the calculated costs for the activities in theProject Cost Plan column. When activities are assigned toWBS elements, the planned costs for the WBS elements aredisplayed in aggregated form, which means that the level-1WBS element shows the planned costs for the entire project.

From the detail screen for activities, you can call up aplanned/actual comparison for the activities. You can run acost report for selected WBS elements via the Extrasmenu.

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PLM200 Lesson: Cost and Revenue Planning

You can also use the Cost Overview in the project planningboard to carry out a graphical analysis of the distribution ofthe planned costs with regard to time.

To analyze the aggregated planned costs of the level-1 WBS elementgraphically, select WBS element T-200## Turbine only on the left in

the table area, and choose Cost Overview. In the lower part ofthe project planning board, the planned costs are displayed in theCost/Revenue Overview and aggregated for the individual periods.

Save the changes you made to your project and exit the project

planning board by choosing Save and Back.

2. Optional: Use the hierarchy report Plan/Actual/Commitment/Rem.Plan/As-signed, which is based on the planned costs, in the Project Systeminformation system to analyze the updated costs for project T-200##.Expand the data according to value categories and period/year. Then exitthe report.

a) To start the hierarchy report, choose Project System → InformationSystem → Financials → Costs → Plan-Based → Hierarchical →

Plan/Actual/Commitment/Rem.Plan/Assigned. Enter project T-200##

in the selection screen and choose Execute.

The planned costs are displayed sorted according to the individualWBS elements. To analyze the individual activities, expand thestructure in the report. To carry out an analysis according to valuecategories, choose Value Category on the left in the navigation panel.To expand the display according to periods, choose Period/Year inthe navigation panel.

To exit the report, choose Back and confirm the dialog box withYes.

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Unit 4: Planning PLM200

Task 3: Optional: Customer Inquiry and Sales Pricing �Project T-200##

Optional: In SD, create a customer inquiry and link the document to projectT-200##. Use the planned costs for the project to create sales pricing data and acustomer quotation.

Hint: You normally create the customer inquiry in SD before creatingsuitable project structures in Project System.

1. In Sales in SD, create a customer inquiry. In the initial screen, enterinquiry type IN (Inquiry), sales organization 1000, distribution channel 10,and division 00. The sold-to party has the customer number 1600.The inquiry is to be valid for one month from today. Enter an item formaterial S-1300. Enter Turbine System as the description and orderquantity 1.

Assign this inquiry item to project T-200##. To do so, enter WBS elementT-200## on the Account Assignment tab page in the detailed data forthis item. On the Sales B tab page, enter DIP profile 13000001. Thisprofile is later used to control your sales pricing. Save the inquiry andreturn to the SAP menu.

a) To create a customer inquiry, choose SAP Menu→ Logistics→ Salesand Distribution → Sales → Inquiry → Create. Enter the followingdata on the initial screen:

Field Name Values

Inquiry Type IN

Sales organization 1000

Distribution channel 10

Division 00

Confirm your entries with Enter.

In the inquiry overview screen, enter the following data:

Field Name Values

Sold-to party 1600

Valid From Today’s date

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PLM200 Lesson: Cost and Revenue Planning

Valid To Today + 1 month

Material S-1300

Order quantity 1

Description Turbine system

Confirm your entries with Enter.

b) To call up the details for this item, choose item number 10. The ItemData screen is now displayed. Choose the Account Assignment tabpage and enter T-200## in theWBS Element field. Now call up theSales B tab page and enter DIP profile 13000001 for subsequentsales pricing.

To save the inquiry, choose Save. The inquiry number is displayed

below in the status bar. Return to the SAP menu by choosingBack (twice).

2. Now use the sale pricing data to create a customer quotation. To do so,create sales pricing data for customer project T-200## in the ProjectSystem menu. First call up the sales price basis. In this screen, expandall the nodes in the structure and double-click Primary Costs to displaydetails on them.

Then call up the Sales Price screen. Display the conditions for thequotation header (Project Quotation) and enter a transfer price surchargeof 10 % with condition type HA00.

To conclude, create a corresponding quotation. When doing so, enterQuotation Gr## as the short text for sales pricing. Finally, return tothe SAP menu.

a) To create the sales pricing data, choose SAP Menu → Logistics →

Project System→ Financials→ Planning→ Sales Pricing. In the initialscreen, enter T-200## in the Project Definition field for the selection.

Then choose Sales Price Basis.

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Unit 4: Planning PLM200

To expand the structure, first choose Expand All Nodes. Thendouble-click Primary Costs in the structure. If required, move theline between the structure and the lower area so that you can seeeverything you need to.

Hint: In the lower area, you can now analyze the plannedamounts, the transfer amounts, and the sales price. Youcan change the transfer amount here with regard to theamount, percentage, or quantity and then block it. The SalesPrice Basis screen enables you to process quotation itemsdynamically. The sales price screen, however, enables youto process the subsequent quotation.

b) To call up the sales price screen, choose Sales Price.

Hint: You can now see the structure of the quotation (alongwith the quotation header, item, and sub-item). A conditionschema is located in the lower part of the screen. You candisplay and, if necessary, change the conditions for theindividual levels in the structure by double-clicking them.

Choose Project Quotation of the Item column in the structure.Different conditions for the quotation header are displayed in thelower part of the screen. To add a new condition, enter the followingdata in a new row at the bottom of the table:

CnTy Amount

HA00 10

Confirm your entries with Enter. The condition value isdetermined and the sale price is adapted accordingly.

c) To create a quotation, choose Quotation. Confirm the prompt to

create the quotation by choosing Yes. Then enter Quotation

Gr## as the sales pricing short text and confirm your entry withEnter.

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PLM200 Lesson: Cost and Revenue Planning

The system creates and then displays a quotation. To return to the

SAP menu, choose Back (twice).

Hint: You can create as much sales pricing data as yourequire for a project. The values determined during salespricing can also be updated to a PS billing plan for revenueplanning purposes.

Task 4: Sales Order and Revenue Planning � ProjectT-200##

The customer accepts your quotation. Create an appropriate sales order inSD and assign the SD document to project T-200##. Enter different paymentdates in a billing plan for the sales order items. Use your project milestoneswhen doing so. Analyze the order values as planned project revenues in theProject System information system.

1. Create a sales order in SD. Enter the following data: order type PS1,sales organization 1000, distribution channel 10, and division 00. Thesold-to party number is 1600 with the order number Gr##. Therequired delivery date is today + 8 months. Enter an item for materialT-20000 with an order quantity of 1.

Hint: When creating the sales order, you can use existingquotations as a template. In this exercise, however, you will notuse a template to create the sales order.

Assign the order item in the detailed data for the item to WBS elementT-200## (Account Assignment tab page). On the Conditions tab page,change the item sales price manually by increasing the amount forcondition type PR00 to EUR 880,000.

Then create a billing plan (Billing Plan tab page) for the item. To do so,select all the milestones that are selected via WBS element T-200## andcopy the milestone dates to the billing plan.

Note the dates and values in the billing plan in the following table sothat you can compare them later with the planned revenues in theinformation system.

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Unit 4: Planning PLM200

Billing Date Billing Value

Return to the item overview and save the sales order. Exit the screenfor processing sales orders.

a) To create the sales order, choose SAP Menu→ Logistics→ Sales andDistribution→ Sales→ Order→ Create. Enter the following data onthe initial screen:

Field Name Values

Order Type PS1

Sales organization 1000

Distribution channel 10

Division 00

Confirm your entries with Enter.

In the order overview screen, enter the following data:

Field Name Values

Sold-to party 1600

Purchase Order Number Gr##

Required Delivery Date Today + 1 year

Material T-20000

Order quantity 1

Confirm your entries with Enter. If necessary, confirm the

prompt to reschedule the invoice date with Enter. Create theorder without using quotation templates. To do so, choose Continuein the Open Quotations for Item dialog box. Confirm the following

information windows with Enter.

b) To assign the order item to your project, choose item number 10 inthe overview and call up the item data on the Account Assignmenttab page. Enter T-200## in theWBS Element field.

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PLM200 Lesson: Cost and Revenue Planning

Call up the Conditions tab page and increase the amount in thecondition type row (CnType) PR00 to EUR 880,000. Confirm your

changes with Enter so that the condition values are adapted.

c) To create a billing plan for the item, call up the Billing Plan tab page.WBS element T-200## is then proposed as the selection criterion for

selecting milestones. Confirm the dialog box with Enter. The two

milestones for your project are now displayed in a list. ChooseSelect All and then Copy.

Hint: The dates of the two milestones for your project aredisplayed in the Billing Date column. The associated billingvalues are determined from the percentages of the milestonesand the net item value. The milestones are assigned toactivities. If the activity dates are changed, the dates of themilestones also change along with the dates in the billingplan.

When you assign the order item to your project, the billingvalues are copied as planned revenues for the milestone dateperiods to project revenue planning.

Note the dates and billing values of the billing plan in the tableprovided.

To save the sales order, choose Back and then Save. The salesorder number is displayed in the status bar. Finally, return to the

SAP menu. To do so, choose Back twice.

2. Optional: Use the hierarchy revenue report (Planned ContributionMargin) in the Project System information system to analyze the plannedrevenues for project T-200## (if necessary, delete the sales order numberfrom the selection screen). Expand the data according to Period/Year and

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Unit 4: Planning PLM200

then compare the displayed data with the dates and values in the billingplan for the sales order item that you noted in the previous step. Thenreturn to the SAP menu.

a) Choose, for example, SAP Menu → Logistics → Project System→ Information System → Financials → Revenues and Earnings →

Hierarchical→ Planned Contribution Margin. Enter T-200## in theProject Definition field and, if necessary, delete the content of the

Sales Document field. To start the report, choose Execute.

The planned revenues are displayed for billing element T-200## ofthe project. The list is currently sorted by object. To expand the dataaccording to period/year, choose Period/Year in the navigation panel.Compare the periods of the planned revenues and their amountswith the dates and values in the billing plan for the sales order item.

To exit the report, choose Back and then confirm the dialog boxwith Yes.

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