Sap Ps Ppt 3j524a

Scheduling parameter: They determine scheduling. These are created for specific plants and network types. 1. Adjust basic dates: It determines that after the scheduling run, the scheduled dates are copied to the basic dates of the network header. 2. Scheduling Type: It determines the type of scheduling being carried out. For e.g. forward first and then backward scheduling. 3. Start in the past: It determines how much time back was the start date. If its more than the days mentioned, scheduling is done from current date. 4. Automatic Scheduling: Scheduling is carried out when saving is carried out. 5. Log Automatic: If log is generated, it is displayed automatically. 6. Break Spec. Scheduling: The exact time at which a break is scheduled. 7. Shift Order: During scheduling. It determines how the system deals with partially completed activities. 8. Latest material dates: based on latest and earliest dates, the requirements dates for a material is determined. 9. Reduction type: Either all activities or only those in the critical path are reduced. 10. Maximum reduction level: There are up to 6 levels in reduction strategy. The highest level is displayed. 11. Rescheduling: After scheduling run is done, it determines how the system is

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allocating work in Work Force planning(WFP)

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Scheduling Type: Determines type of scheduling being carried out. 1. Start in the past: It determines how much time back was the start date. If its more than the days mentioned, scheduling is done from current date. 2. Scheduling form: It specifies as in on what basis is the scheduling being carried out – WBS element or Network header. 3. Adjust basic dates: It determines that after the scheduling run, the scheduled dates are copied to the basic dates of the network header. 4. Log Automatic: If log is generated, it is displayed automatically. 5. Shift Order: During scheduling, it determines how the system deals with partially completed activities. 6. Schedule when saving: Scheduling is done on saving. 7. Latest material dates: based on latest and earliest dates, the requirements dates for a material is determined. 8. Maximum reduction level: There are up to 6 levels in reduction strategy. The highest level is displayed. 9. Reduction type: Either all activities or only those in the critical path are reduced.

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Every time a network is scheduled, forward and backward scheduling is carried out by the system; and if activated it determines float and capacity requirements for activities, reduction level used to schedule the network, earliest and latest dates for the relationship.

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Forward scheduling determines the earliest dates.

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Backward scheduling determines the latest

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dates.

Float: If earliest dates are not same as latest dates, then float are: occurs. The Scheduling results • Scheduled start and finish for the network. • Earliest start and finish dates (earliest dates) and the latest start and finish dates (latest dates) for activities and earliest and latest dates for relationships. • Reduction levels used to reduce the network and float times (total and free float) for activities. • And capacity requirements for activities.

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Other influencing factors in scheduling: Internal processing: the normal Duration maintained in the activity is used by the system for scheduling internally processed activity. External processing: Planned delivery time or normal Duration (explicitly to be activated in control key) will be used by system for scheduling externally processed activity. General costs activity: Duration Relationship: Time interval: Fixed or as a percentage. The work centers can be maintained in internally or externally processed activity and in relationships, and work centers contains following information's: 1. Formulas for calculating duration of activities 2. Factory calendar and operating time for each workday.

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A network must and always scheduled forwards and backwards and scheduling type specifies whether forward scheduling or backward scheduling is carried out first. Forward scheduling calculates the earliest start and finish dates for all activities, and the scheduled finish date of the network. A start activity is an activity in a network that does not have a predecessor. Backward scheduling calculates the latest start and finish dates for an activity (latest dates) and the scheduled start date of the network. A target activity is an activity in a network that does not have a successor. When forward scheduling is performed first, the date from which scheduling starts is the basic start date in the network header. When forward scheduling is performed after backwards scheduling the start date is calculated from backward scheduling. When backward scheduling is performed first, the base date from which scheduling starts is the basic start date in the network header. When backwards scheduling is performed after forward scheduling the finish date is calculated from forward scheduling. Start dates are at the beginning of the day (00:00). Finish dates are at the end of the day (24:00).

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Scheduling Assembly Networks: Overall Network Scheduling can be performed for a sales order item. This function schedules the network assigned to the sales order item and all other networks with relationships to it (total network scheduling). The function leads to an update of all items in the sales order with assignments to the total network. Overall Network Scheduling with Selection Options: This function is used along with selection criteria to specify which network/subnetwork are to be taken into as part of overall network scheduling. A prerequisite for the use of the Overall network scheduling with selection options function is that suitable levels are defined beforehand for the project system and network types and number intervals are assigned to it.

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Activity Element & PRT Dates The system calculates dates for activity elements with reference to the start or finish dates of the activity. You maintain a time interval for the start and a time interval for the finish. Material Requirements Date The system calculates the requirements date for components with reference to the start or the finish date of the activity. With the network type you can control whether the earliest or latest start date is used as the requirements date in the network. If the requirements date is before or after the start date of the activity, you can enter a corresponding lead time offset. You can set a manual requirements date for components.

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You can maintain constraints for the start and finish of activities and / ”or (offsets for)” activity elements. Constraints can be relevant for both the earliest and the latest dates. You can maintain constraints for basic and forecast sets of dates.

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Legend: ES = earliest start EF = earliest finish LS = latest start LF = latest finish TF = total float FF = free float Floats supply information about time reserves available for individual activities and one can use floats calculated in scheduling, for example in capacity leveling, to shift activities between their earliest and latest dates or to extend their duration. Total float: The amount of time an activity can be shifted from its earliest dates into the future without affecting the latest dates of its successor. (Total float: = LS-ES or LF-EF) Free float: The amount of time an activity can be shifted from its earliest dates into the future without affecting the earliest dates of its successor. (Free float = ES successor – EF activity)

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The slide describes the calculation of total floats and free floats: The total float can be calculated as the difference between the earliest and latest start of an activity. In the above example: Day 6 (0:00) - Day 5 (0:00) = 1 Day. The free float of an activity can be calculated as the difference between the earliest start of the successor and the earliest finish of the activity. In the above example: Day 9 (0:00) - Day 7 (24:00) = 1 Day.

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Reduction: Reduction can be used when the time period within which activities are scheduled is not enough for processing all the activities. This reduces the scheduled duration of internally-processed activities and for which reduction strategy has been maintained. Up to six reduction levels can be defined for each reduction strategy. The percentage reduction required can be entered for each reduction level.

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You can plan project costs in two different ways: Manual cost planning in the WBS Cost planning using activities (network costing) Manual planning in the WBS involves: 1. Overall planning is a structure-oriented planning and is the most basic form. In this kind of cost planning you enter costs for each WBS element which will be broken down by fiscal year if you want. 2. Cost element planning is a detailed planning of primary costs and activity inputs which is cost element based and period based. 3. In Unit costing you use a profile to enter quantities like internal activities, materials, variable items and external services etc. for each WBS element. Unit costing is cost element based. 4. From 4.6C release, you can use Easy Cost Planning which offers you an easyto-use tool for planning costs by cost element in a quantity structure. And further one can use Execution Services to enter actual data and commitment for the related planned costs. The plan costs can be determined manually as mentioned above and also by creating

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activities for WBS elements, and using these activities to plan costs. When using networks and activities, planned costs are automatically calculated based on the resource requirements identified for activities and operations. Resources provide a quantity structure that can be dynamically valued by the system. This method has the following advantages: a. resulting plan can be copied to new projects b. cost planning is shifted automatically along with the activities, if parts of the project are shifted. c. Planning using network activities is by cost element and period.

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You can plan project costs simply by creating activities for WBS elements (for example, in the project planning board or structure planning transactions). Planning in this case is by period and cost element. This process has significant advantages over manual planning of primary costs or activity inputs: Cost planning can be postponed easily, using a work package. You can copy this type of cost planning to new projects. Cost planning is integrated with time scheduling and resource planning.

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When you plan dates and resources in network activities, the system determines the corresponding planned costs automatically. Planned costs are determined for the following objects: Activity inputs for internally-processed activities Primary costs for externally-processed activities and services Primary costs for general costs activities Primary costs for material components Activity elements are costed as if they were activities. System automatically calculates the planned cost based on planned dates and resources in network activities. Cost elements should be identified by cost relevant items. Identification in internal activities, external activities is as: Internal activities/ services: Determination is by means of secondary cost element assigned in the network type master data

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External activities/services :1) Non stock-It is identified by G/l 2) Stock- It is determined by automatic determination Cost planning is integrated with time scheduling and resource planning

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Internally processed activities are used for the work which needs to be executed in own company and assist in planning work. In the activity, you need to maintain the work data and based on same system calculate costs for these activities. Work is an input for machine or person to execute the activity. And work center is place where the work is carried out and work output is provided. Work centers contains data such as scheduling and capacity, which assists in costing, scheduling and capacity planning of activities. The costs can be distributed over the network duration for internally processed activities & cost activities and controlled via distribution key. The distribution key is determined from the activity or from work center (only in internallyprocessed activities), if not maintained in activity. If distribution key is not maintained or determined, costs are distributed evenly (over the earliest dates) in the activity. Example: An activity spread across periods 09 and 10, with a total work time of 250 hours. The dates and the distribution key used for the activity assign 100 hours to period 09 and 150

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hours to period 10. If the rate is 100 Euros per hour for period 09 and 80 Euros per hour for period 10 and valuation per period has been stipulated, the costs are 10000 Euros for period 09 and 12000 Euros for period 10. During execution phase, when you confirm the activities, you consume the capacity required by the activity and enter the actual date and costs. You can distribute work among the employees by asg persons to the activities from a project team which can be set up from HR organizational units, persons or positions.

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When procuring services externally (outsourcing), you can create services or externallyprocessed activities. Example: You commission a freelance engineer to design and build a machine. When creating a externally processed activity or service activity, a purchase requisition is created based on the settings and further processed in purchasing and the data can be accessed from purchasing for external processing e.g. purchasing info record, which contains data for the pricing and delivery times. Externally-processed activities give rise to planned costs equivalent to the prices from the purchasing info record or the price in the activity. The valuation variant for the network costing variant determines which price is used for the valuation. When the purchase requisition is activated and converted to a purchase order, the activity is also shown as a purchase requisition commitment or purchase order commitment. The assignment category in the purchase order determines whether the goods/invoice receipt is valued - that is, whether it gives rise to actual costs. If the goods receipt is valuated, actual costs are posted to the activity and the commitment is reduced by the amount of the purchase order. This means that the invoice receipt

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may correct the actual costs. Service activities are maintained for the purchase of services. Creating such an activity establishes the link to MM Services (MM-SRV). Unlike externally-processed activities, service activities contain a service specification containing planned activities and value limits for unplanned activities. This service specification is copied to the purchase order where Purchasing can then modify it. Service activities also give rise to planned costs or purchase requisition/order commitments. Instead of goods receipts, services are later entered and accepted. The service activities also initiates the purchasing process but contain the value limits for the unplanned services and hierarchy of planned services to be procured. The goods receipt process in Services activities involves following steps: service entry and service acceptance. The externally processed activity and service activities are differentiated by Control keys.

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We can assign a work center and planned work to an externally processed activity. This allows to carry out capacity planning for vendors Changes in network dates/quantity will trigger workflow for a PO change: If changes are made in the network to dates or quantities for material components or external activities for which PO has already been created .system triggers a workflow automatically. The only prerequisite is that this workflow has been activated in the parameters for the network type table The person responsible in purchasing will receive an information on the required changes. If only PR is created, changes in the network to dates/quantities will update the change in PR automatically

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The Internal processed activity, external processed activity and service activities are differentiated by Control keys. We can generate Purchase requisition (PR) for externally processed activities from Project System. The PR is converted to a Purchase order (PO) in purchasing. A goods receipt and invoice receipt can then be posted for the purchase order We can assign a work center and planned work to an externally processed activity. This allows to carry out capacity planning for vendors

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You can use general costs activities to plan all other costs that cannot be mapped via internally-processed activities or externally-processed/service activities. In the general costs activity, you can enter a description, the amount and currency, a cost element, a duration and a distribution key for distributing costs. The costs are distributed using the network duration for general costs activities. Distribution is controlled by means of the distribution key for the activity. If no distribution key is maintained, the costs are distributed evenly over the earliest dates in the activity. You can create a unit cost plan for the general costs activity. This means that detailed costing is possible even at an early stage of the project (for example, for sales pricing). The activities which cannot be tracked though internal/externat activities/services can be tracked through general cost activities to plan costs Eg travel expense for meeting.Genral cost activity is assigned to cost object Costs are distributed as per scheduled duration which is controlled by distribution key

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.There are cases where distributionkey has not been maintained,in those cases even distribution of cost is done based on the earliest dates in the activity Detaled costing can be done like during sales pricing phase that is at beggining phase of project

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You can create invoicing plans directly for network activities (external, service, or general costs) or components procured externally. This means that it is possible to plan costs and outgoing payments on the basis of dates entered in the invoicing plan. Costs are not simply distributed, but are calculated precisely at the times specified in the invoicing plan. You can create an invoicing plan by copying a reference invoicing plan. The reference invoicing plan fixes cost and payment times relative to a start date. Alternatively, you can copy billing milestones as dates to the invoicing plan of the activity. If you copy the milestones rather than creating them manually, they can be postponed along with the dates in the invoicing plan if the activities are rescheduled. You cannot create invoicing plans in combination with unit costings (for general costs activities or material components).

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On the basis of days, periods or fiscal years one can plan payment flows i.e. revenues and expenditure. In WBS elements, manual planning of revenues and expenditure is by period. At commitment item level (Project Cash Management master data) planning takes place. The quantity structure in the network and the billing plans in the WBS or SD document are valuated in the automatic planning of financial data. Automatic planning will be done by day. Planned line items will be written. Based on assignment to G/L s commitment items will be determined. Unlike revenue and costs calculation, payment date calculation takes of the customer and vendor payment respectively. Note: The credit side payment plan of the network is determined using the asynchronous network costing only. The dates and the payment are used in the PS billing plan for planning incoming payments. Sales order items will also be used in asg the billing plan data and payment (of the dates or sales order item).The delivery date including the payment conditions is used if there is no billing plan for the sales order item.

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In the case of activities processed externally and externally procured components, invoicing plan including payment conditions are used – or, the delivery dates including payment conditions are used where there is no invoicing plan If an invoicing plan has been maintained, payment data is only planned for general costs activities

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Planned revenues and incoming payments is relevant in billing plan. Dates for Down payments are relevant only for payments (not revenues). Milestone billing dates appear as planned incoming payments and planned revenues. Two things are important for dates and amounts i.e. payment and payment target (example: payment 1 week after invoice issue, with 2% discount) Once the project is executed, invoice billing will be generated and appear in the project as actual revenues and customer payment obligations. With respect to dawn payment date, down payment requests will be generated by the billing program which are recorded in the payment data for the project. Billing plan can be created for a sales order, a sales order item or for a billing element in the WBS. Planned costs and planned outgoing payments are relevant during the Invoicing plan.

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Invoicing planes can be created for externally-processed activities, externallyprocured material components, service activities and cost activities.

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Depending on the transaction, you can calculate costs for one network (example: network maintenance) or a range of networks (example: all networks for selected WBS elements in structure planning or the project planning board). You can calculate network costs asynchronously. The advantage of this is that you can select and cost broader ranges (example: A to Z) and carry out costing in the background.

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Costing variant controls calculation of planned and actual cost. Costing variant is assigned to order type. Networks are of order category 20. The valuation procedure is defined by valuation variant which is a component of costing variant. Based on valuation variant prices are determined by the system to value componenets material, activity type, processes, subcontracting and external activities. Valuation variant searches for prices in sequence from the price sources. Price entered first is selected first Materials:Price is selected either from purchasing date or material master record Activity type & Processes: Price is selected either from activity based costing or cost center ing Externallly processed activity:price is selected either from the activity or from purchasing information record

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When customizing the order value update, you stipulate, for each order category and type, whether the order or network is appended - that is, whether its planned costs are added to the project cost plan for assigned WBS elements. There are two tables for the order type (network type). The first is defined per order type, the second (parameters for network) per order type and plant. A third important table is the network profile, containing default values for the network and its activities. The costing variants for plan and actual costs are determined at network header level. The costing sheet and overhead key are determined at activity level. They control process cost ing or application of overhead. Depending on the creation process, these keys are inherited from the network header or the assigned WBS element.

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The costing variant contains the basic control information needed to carry out costing. The valuation variant contains all the information which controls the valuation of: Material components Internal activities External activities This information also controls how overheads are applied. Valuation can be determined plant by plant. The "By period" indicator enables you to calculate costs for internally-processed activities period by period. The costing type contains further detailed information for controlling costing.

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You can classify the resources in broadly 2 categories from the networks point of view: Internal and external activities. • Internally processed activities: These activities / work are carried out by machines and / or persons of own company. You can schedule the activities as per requirement, distribute the work among persons. • Externally processed activities: these activities are executed / processed by other companies. These are carried out by purchasing department. The service activities are also procured externally however different from externally processed activity that you need to define service specification and the limit for the unplanned activities which is provided by the service provider.

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Business scenario To execute a project, materials are required which can be procured externally (purchasing) or manufactured in own company (Production). These materials are managed in project-specific stock. As the project controller, you are interested in: The values in the project, at the different stages of purchasing or production

(project controlling) Stocks of raw materials, semi-finished and finished products used for your project

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(stock controlling)

Materials provide linkage between many other SAP functional modules like Materials Management (Purchasing and Inventory Management), Sales and Distribution, plant maintenance and Production Planning and Control. The materials are assigned to activities which helps in material requirement and planning in a project. •The product which is manufactured in your project is in turn made up of a variety of material components. •The first step is to plan the procurement and consumption of the required components in your project. •Projects are linked to Materials management, Sales and Distribution and Production Planning via materials.

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In order to plan the material requirements of a project, materials can be assigned to activities. On the basis of stock, the materials are classified as stock or non-stock items. The item category stock items (L) are for such materials which are stored in stock e.g. project stock, sales order stock or warehouse stock and reservations can be created for such materials. Based on the quantity required in the project, the requirement planning can be initiated. The procurement element for external procurement is a purchase requisition and for requirement planning is planned order. For productions of assembled material, material BOM is exploded and the requirement planning is executed for all the materials mentioned in BOM. Non-stock items (N) are for materials which are to be procured directly for the network which is not using MRP (i.e. not procured via project stock, sales order stock or warehouse stock). For non-stock items, Purchase requisitions are created which are ed on directly to Purchasing.

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The item category "stock item" (L) is used for materials kept in stock. When you save your data, the system creates a reservation for the required material. A purchase requisition - which is ed on to Purchasing - can also be created for components procured externally. The main function of material requirements planning is to ensure material availability (in other words, to procure the required quantities in time - both in-house and for sales and distribution). This includes monitoring stocks and, above all, creating procurement proposals for purchasing and production. Independent requirements - that is, requirements for finished products, assemblies or raw materials - trigger requirements planning. In order to cover the requirements, order quantities and dates have to be determined, and the corresponding procurement elements scheduled. The procurement element for requirements planning is a planned order and, for external procurement, a purchase requisition. Furthermore, the dependent requirements for materials produced in-house (in other words, the quantity of components required to manufacture a finished product or assembly) are determined by exploding the bill of material. Planned orders are created at each BOM level to cover requirements when a material shortage occurs.

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Once quantities and dates have been planned in requirements planning, these planned procurement elements are converted to "exact" procurement elements: for production, this is the production order and, for external procurement, the purchase order. When the order or purchase order is being processed, the production order is delivered or a goods receipt is posted to stock (plant stock or project/sales order stock). The goods issue that takes place as a result of this activity reduces the stock and posts actual costs to the "consuming" network activity. Item Category L (stock item) is used for components kept in stock . Ensuring material availability is the main function of MRP which includes monitoring stocks and creating procurement proposals for purchasing and production . Requirement for finished products, saleable assemblies and spare parts trigger requirement planning. Order quantities and dates have to be determined in order to cover the requirements . For requirement planning the procurement element is the planned order and for external procurement it is purchase requisition . Planned procurement elements are converted into exact procurement elements once the quantities and dates are planned. It is Production order for production and purchase order for external procurement.

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The item category "non-stock item" (N) is used for components that are not procured by way of warehouse stock or project/sales order stock, but are procured directly by a network activity instead. Purchase requisitions are created for these components. These requisitions are ed on directly to Purchasing. When the goods are received, they are not placed into stock, but posted to the activity. Non-stock items cannot be managed as project stock or sales order stock. Non Stock Item (N) : These are the items which are procured directly by network activity and not through warehouse stock, project stock or sale order stock . Purchase requisitions are created first and then ed directly to purchasing. When the goods are received they are directly posted to activity . Non stock items cannot be managed as project stock or sale order stock . There are two procurement types for direct procurement with item category N :

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Purchase Requisition for the network Third party requisition for the network

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Changes in network dates/quantity will trigger workflow for a PO change: If changes are made in the network to dates or quantities for material components or external activities for which PO has already been created .system triggers a workflow automatically. The only prerequisite is that this workflow has been activated in the parameters for the network type table The person responsible in purchasing will receive an information on the required changes. If only PR is created, changes in the network to dates/quantities will update the change in PR automatically

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For instance – In this case the way in which the material can be procured depends on both item category and material attributes.

The material master stores the information of the material attributes. -It contains information like : -Whether the material is purchased or internally manufactured. -Whether the requirements are individual or collective or both -Whether the material can be procured in advance. The control data of the project definition determines whether stocks can be built or not

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The assignment category of the sales order determines whether sales order can be built up A setting within the BOM can be specified to determine whether the components can be procured independently of the material master settings.

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•The components can be assigned to the activity with the help of the procurement indicator. •The Procurement indicator contains the default values for determining the stock and the procurement type. •A procurement indicator can be specified in the network profile. This gets defaulted in the component assignment.

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The BOM transfer functionality in SAP PS helps you to assign the material from BOM to the network activities based on the reference point field which is assigned to the material and network activities. WBS BOMs can be assigned to Project BOMs using the BOM Transfer transaction . The corresponding selection parameters must be chosen to perform the same. Advantage of BOM transfer functionality is that the changes in the BOM during the course of the project will change in the activities (you need to run BOM-transfer again every time you make changes in BOM). You can also manually assign materials to network activities without reference point fields.

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Reference point : This is the logical link between a BOM component and a network activity. It ensures that the automatic assignment of the material component happens correctly. •While the assignments by themselves are project specific, they can be made simultaneously for a large number of networks in the project. •Individual components, individual BOM assemblies or a multi level BOM can be assigned. •These assignments can happen manually without reference points as well. Procedure For BOM Transfer: •Field in the BOM and the network activity which needs to be used as the reference point needs to be specified. •These fields must have the same structure in both the objects. For instance : CHAR, eight digits . •Possible entries for the reference point can be defined in customizing. •Reference points in the BOM Components and the network activities must be defined. •The BOM PS Interface must be started (after changing the BOM)

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•BOM Components are assigned to activities in this process. •Purchase requisitions and reservations are created for the assigned components if Reservation/Purchase Req. indicator is activated.

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A material that you allocate to activities in a network can be kept in various stocks. Depending on your project, you can access different types of stock for materials planning: Sales order stock and project stock are important for controlling purposes (for monitoring the stock value in a sales order or project) and from an MRP point of view (the stocks are reserved for the sales order item or WBS element; other stock elements cannot access them). The various stock types are managed for each material component using the assignment category. You define the assignment category when you assign the material to the network activity (popup in manual assignment, strategies in BOM-PS interface and standard network). The possible assignment categories depend on the assignment of the network activity to a stock object (WBS element or sales order item), on the item category for the assignment (direct procurement for non-stock items) on the material master, which can exclude collective or specialist stock management. As of Release 4.5A, you can use MRP elements (grouping) to manage a t project stock for an entire project or for several projects (this is a rougher method than managing stock per individual WBS element). You maintain the assignment categories possible for network purchase

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requisitions in customizing.

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Instead of managing the material either in a plant stock or for each individual WBS element and having no control at all over procurement or being fully responsible we can go for requirement grouping. Through requirement grouping we can determine the degree of control ourselves. Prerequisites for using requirement grouping : Valuated group stock Grouping WBS elements MRP Groups that allow requirement grouping Assigned components should have periodic lot sizes. The most basic scenario involves grouping the requirement of all the WBS elements in the project into one WBS element. Or we can create projects which are only meant for grouping requirement of other projects.

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Valuated project stock must be allowed in the project definition control data. With the exception of automatic requirement grouping MRP element indicator must be set for WBS elements. MRP groups involved in requirement grouping must be determined in customizing for the WBS.

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It is common in engineering projects for critical components with long and unreliable delivery times to be purchased at an early stage in the project much before the project activities in which the components will be used are specified. Advance procurement process is used in such situations. Advance procurement can only be used when you are using sales order or project stock .

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Order Categories and order types Documents are used to enter business transactions in the R/3 System. Orders are one type of business transaction. Orders are determined by their order category. The network is an order category. Order types are prescribed by the system for the relevant applications. You can define your own order types within an order category. The order type describes how the order is controlled. Customizing includes two tables, one for the order type and another for the order type/plant combination. The order category is used to control: 1. Number assignment 2. Default value settings 3. -specific status management 4. -specific field control In the case of networks, order types/plants can be header-assigned or activityassigned. Normally, activity-assigned networks are used, where costs are gathered in each activity. Header-assigned networks are only significant for the assignment of networks to sales orders (without WBS). Project – Assignment of orders

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You can assign various SAP orders to a project; examples include internal orders, production orders, and plant maintenance orders. You can then use the project hierarchy reports to evaluate these assigned orders with the WBS element. Each order is a cost object with its own costing parameters such as planned costing variant, actual costing variant, and overhead sheet. The planned costs of assigned orders are used to determine the planned costs of the project. You assign orders to the project either by asg a WBS element to the order header or by asg the order to a network and activity as a subnetwork. If the assignment is required only for cost control and analysis, you need to assign order to the relevant WBS element. If the assignment is required both for scheduling and cost control, you need to assign the order as a subnetwork. The WBS element is derived from the network activity. Note that production orders cannot be assigned as subnetworks. Documents are used to enter business transactions in the R/3 System. Orders are one type of business transaction. Orders are determined by their order category. The network is an order category. Order types are prescribed by the system for the relevant applications. You can define your own order types within an order category. The order type describes how the order is controlled. Customizing includes two tables, one for the order type and another for the order type/plant combination. The order type is used to control: Number assignment Default value settings -specific status management specific field control Plant and order type parameters are used to control: If the network is activity- or header-assigned Planned and actual costing variants The settlement rule strategy

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You can use the "appended" indicator to specify, per order category, whether an order is appended - that is, whether the planned values for the order are included in the planned value of the corresponding WBS element: 1. If the "appended" indicator is set, the order planned value increases the WBS element planned value. The information system shows the total as the project plan. When cost planning is taken over as the budget, the values from appended orders also contribute to the budget. 2. If the "appended" indicator is not set, the order planned value is not added to the WBS planned value. In budgeting, the plan total for such orders must be added manually so that these orders can use funds later.

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You can use the "appended" indicator to specify, per order category, whether an order is appended - that is, whether the planned values for the order are included in the planned value of the corresponding WBS element: Once released, all orders are apportioned - this means that their plan, commitment, and actual values are funds assignments against the funds in the project. The order value table contains an indicator which you can use to make orders "apportioned" earlier, at the "created" stage. You can set appended and apportioned indicator based on the order category,order type, and controlling area An exception to apportionment at release is in the case of networks for preliminary planning.In Project System customizing,you can specify network types to be used for preliminary planning.Preliminary planning networks are never apportioned.Their related plan values do no increase the assigned value for the relevant WBS element In the case of networks (order category 20), you can use the network type parameters to determine whether the network is: Header-assigned or activity-assigned - that is, whether costs are managed in the network activities or collected in the header

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A preliminary planning network whose plan, commitment, and actual values are not apportioned - meaning that they do not appear as assigned values in the project.

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Header-Assigned Networks In a Header-assigned networks all the costs (activity and material) are assigned at network header level After assignment of network header to a WBS element, All costs are transferred to WBS element. Assignment of activities to WBS elements is only to summarize the dates We you have to use header-assigned networks to assign networks to sales order in case sales order are not assigned to projects as no assignments can be made to a sales order item in the network activity. Activity-Assigned Networks Costs are collected on activities in case activites are used as assigned objects.Plant/network type parameters deines the condition if the network header or network activities are to be used as cost objects. Activity- assigned networks are usually used when activities are assigned to various WBS elements.Here every activity in the network is an assignment object. Which implies we can analyze planned costs, commitments and actual costs for each activity. The costs are aggregated and displayed for the WBS elements to which the activities are assigned.

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Activity assignment is a special feature of networks. All other order types are header-assigned. Activity assignment is controlled via the appropriate indicator in the table "Parameters for network type". Header assigned networks should be used when networks are assigned to sales orders without WBS.Header assigned networks can also be used when the enitre network is assigned to a single WBS element

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SD document item assignment is controlled via the assignment category. The assignment category is controlled via SD requirements type determination. Important factors that affect assignment are the strategy group, the MRP type and item category group from the material master of the product as well as the document type of the SD document. The system defaults the item category when you create an order. You can accept the default or overwrite it. Permitted item categories are defined in Customizing. The permitted planning strategies are assigned to the material using the planning strategy group. This is necessary so that you can find the correct requirements type in independent requirements management and sales order management. The default requirements type is the main strategy in the planning strategy group. If no planning strategy group is defined in the material master, the system uses the item category group (sales and distribution screen in the material master) and, if necessary, the MRP characteristic to search for the requirements type for the sales order.

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The assignment category determines the CO object to which document quantities and values are assigned. You use it to determine the following: Using the special stock indicator (SSI above), that goods movements in Logistics use plant stock, sales order stock or project stock. Using the consumption posting indicator (Cons. above), the CO object to which the values of a material document are assigned. Settings: F = Collective stock, consumption posting to the consumer (order, activity) The assignment category is important for procuring components directly. E = Quantities and values managed in the sales order item This assignment category is important for make-to-order production without WBS. D = Quantities managed using sales order item, values managed in projects This assignment category is important for non-valuated project stock, with WBS and sales order item Q = Quantities and values managed in projects This assignment category is important for project stock

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G = Plant stock, values managed using project This assignment category is important for sales order items sold from plant stock, with value posting to the project. It differs from assignment category "F" in the field control of the assignment block.

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Activity-Based Costing offers a facility for allocating and distributing the overhead to its cause. Activity-Based Costing provides useful information on: • Overheads reduction by process improvement • Profitability increase by highlighting unprofitable products or customers Activity-Based Costing is advantageous for having: • Transparent overheads • Parallel quantity and value flows • Precise assignment of internal activities to consumer “Peanut butter effect" can be avoided through even distribution of overheads among all the cost drivers.

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In Activity-Based Costing, processes are the controlling objects. Prices can be either maintained manually or using activity and cost input planning in the case of cost centers and activity types. Through activity based costing, processes are debited to cost objects or profitability segments.

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Templates are created in ‘Customizing’ and determined by controlling area, costing sheet, overhead key and template environment (for networks – 004; for WBS – 005) for the function. In the Project System, templates can be assigned to WBS elements, networks (header assigned), or network activities. Process costs are allocated to cost objects or profitability segments by asg a process template. Process costs are calculated based on the templates selected for the project.

After template selection, the calculation program determines the following •

Processes in the template relevant for the project

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Quantity of each process consumed by the

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project •

Calculated value to be added to the project at the start, end or continuously

The price for the process and the allocation cost element are determined by entering one process per line in the process template. Multi-level processes can be mapped by referencing another process template in the working template. The quantity used by the cost object is determined using the cost driver. This enables the allocation of the relevant values to all the levels in the process hierarchy as far as cost objects or profitability segments. Cost drivers can originate from many different sources in the R/3 System or external systems. Examples : weight (material master), number of components, activities of a particular category, work center (network), number of sales orders for market segment (LIS) etc. The quantities determined by the cost driver are multiplied by the price of the process. The resulting value is charged to the cost object (in the example, the WBS or network/activity), and the process is credited.

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Actual prices for activity types and business processes are calculated in Overhead cost controlling at the end of the period. Actual prices = Actual costs / Quantities consumed The possibility of revaluation at actual prices and its specification for each activity type are controlled in Customizing in the parameters for the actual version depending on the fiscal year. The difference between the actual price and the originally allocated price is charged to the cost objects. Revaluation at actual prices for activities and business processes can be done in the Project System and in the Cost Object Controlling. Revaluation at actual prices using an activity type is illustrated in the example given in the slide

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Overheads calculation is used to allocate overhead costs to cost objects such as activities and WBS elements. Calculations are done based on the Costing sheet entered in

the cost object and the overhead key entered on the WBS element, network header or network activity. Overheads can be calculated for planned, commitment and actual values. Overhead calculations are done using the quantity based or percentage allocation rates. The following postings get generated through overheads allocation: •

Debits to cost object (WBS element, Network header or Network activity )

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Credits to cost center ( overhead order or process )

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Overhead costs are updated using the secondary cost elements in the costing sheet credit rows and these can be simulated also.

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Costing sheet is derived by means of the costing variant from the "Parameters for Network Type" table, in the case of networks. The costing sheet and the overhead key can be changed in the network header. The costing sheets to be used in the activities are made a default through this. For WBS elements, the costing sheet is derived directly from the project profile. In the case of Easy Cost Planning and the unit costing for WBS elements, the cost planning draws on a costing sheet for a costing variant which is assigned to the project profile through the planning profile. Overhead keys for activities are inherited from their respective WBS elements.

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Overheads are calculated using a costing sheet. The overhead surcharge can either be a percentage if it is value driven or an absolute value of measure if it is quantity driven. The overhead is calculated against a base which is defined by the cost elements. Cost elements or cost element areas are collected in base lines. Factors such as Controlling area, company code, plant, overhead group, network type, time period and plan versus actual determine the overhead rate applied. Overhead key assigned to the cost object decides the determination of overhead group in customizing. Thus a single costing sheet with flexible rates can be made use of different organizational units or individual activities.

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As of Release 4.6C, the SAP System offers an easy-to-use tool for planning costs in WBS elements. The tool is called "Easy Cost Planning". Easy Cost Planning for projects can be accessed from the Project Builder. You can choose a WBS element from the structure tree and then you create costing items for the selected WBS element. In Easy Cost Planning, cost planning is cost element based. You can use planning templates to enter costing items in which characteristics are valued. The example above shows work in hours being valued at 100. The characteristic values which are linked from the planning template are quantities, values, or actions from the costing items. In the example above, the link is to the quantity for an internal activity. When you accept them, the costing items appear in the structure tree beneath the relevant WBS element. As an easy way to create a project preliminary costing, Easy Cost Planning can be very useful. The costs so planned are then broken down - for example, using a quantity structure of

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networks/activities. Easy Cost Planning can also be used to enter plan data for later project execution. Having done this, you can later use Execution Services to enter commitment and actual data relating to the planned costs. Use customizing to stipulate in which plan version values planned in Easy Cost Planning are stored. As part of the network costing, the system automatically determines planned costs when you plan dates and resources for the following objects: a. For internally processed activities: activity inputs b. For externally processed activities & service activities: Primary costs c. For genreal costs activities: primary costs d. Material componenets: primeary costs. You can use planning templates to create quantity structures for Easy Cost Planning. You can enter quantities and prices in the template, or regulate activation using formulas or conditions. You can use characteristics assigned to the planning template as variables for the formulas/conditions. The characteristics are valued by the when the planning templates are copied into Easy Cost Planning.

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Unit costing is done to calculate cost plan per WBS element. Here we use planned quantities instead of cost. It is not period dependent At cost element level, plan values are displayed Input information related to sources of supply, quantities and prices mark the use of unit costing to generate cost plan per WBS element

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Structure Oriented Planning: Simplest type of planning is structure based planning. Plan values are displayed in hierarchy The total cost planned is aggregate It is neither by cost element nor is period specific Various views are used to display the different values in structure-oriented planning Planned total View-this shows total aggregate at superior WBS element (Level 1 WBS element) The distributable or distributed view-This view is used to check distribution of budget among child WBS element Cumulative or remainder view-This view is used to check distribution of budget across years Order/network view-This displays the planned cost od appended orders/networks assigned to WBS element Cost Element Planning/Activity Input Planning: When more detailed information is required, cost element planning is done. It is independent of project scheduling Manual reschedule of cost planning becomes mandatory if a project or individual

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package schedule is changed This planning is adopted if precise information is available as it becomes sure not to reschedule/postpone the project

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The plan profile is used to control overall cost/revenue planning. It contains costing variants for the unit costing or Easy Cost Planning. It also contains indicators for updating revenue plan values via customer quotations or sales orders. You assign the plan profile to the project by way of the project profile. You can change it in the project definition. Costs and revenues can be planned in different CO plan versions. You either specify the plan version during planning or, if you are using Easy Cost Planning, you assign it to the controlling area. Planning layouts are used to plan costs, revenues, payments, and statistical key figures. You can use the Report Painter to create the layouts and can assign them to planner profiles. s can choose planner profiles and assign them to the master record. Planning profile: Use transaction OPSB The Planning profile contains the settings related to planning. It control overall cost/revenue planning. Planning profile is assigned to project using project profile. Costing variant are

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relevant if we are using unit costing and easy cost planning CO plan version is required to be specified if we are using easy cost planning. Planner profile and planning layouts are specific to use of detailing planning using “cost element/activity input”

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Planning profile is contains the settings for overall planning, detailed planning and unit costing Details for each field can be checked using F1 Important field details are as: Total Value: Defines overall planning without any reference to fiscal year Annual Planning: Defines overall planning with reference to fiscal year Bottom up Planning: Overall planning values are extrapolated after saving Exchange rate type: Determines which exchange rate is to be used for currency conversion of overall values

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Transaction OKKT to edit costing and valuation variant Costing variant is mostly used for unit costing ,easy cost planning and also used for costing networks. The field costing type determines for which WBS element (costing object) costing is done Valuation variant determines the prices and rates. In the above mentioned slide, system will first check for “Planned price 1” if it fails, system will check for “standard price” and again if it fails it will check for “moving average price” from material master. If system now fails, it will trigger an error message during cost determination

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Internally-processed activities: If no distribution key or work center is maintained in the activity, the costs are distributed evenly over the earliest dates in the activity. Valuation is at the rate in the valuation variant. Depending on the strategy being used, the system can determine the most current date. valuation is determined by the rate maintained in the valuation variant. Based on the strategy adopted, system determines the latest date. If no work center/distribution key is maintained, the system distributes the cost evenly over the earliest dates. Costs activity: Case 1:Invoice plan maintained:the values in periods are as per the values mentioned in invoicing plan Case 2:Invoicing plan not maintained and distribution key maintained:The activity value is

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distributed to the periods based on the distribution key maintained in the activity Case 3:Invoicing plan not maintained and distribution key not maintained:The costs are distributed evenly over the earliest dates in the activity If an invoicing plan has been maintained, the values in the periods are set as specified in the invoicing plan. Otherwise, the activity value is distributed to the periods using the distribution key in the activity. If no distribution key is maintained in the activity, the costs are distributed evenly over the earliest dates in the activity. Service activities or externally-processed activities: Case 1:Invoice plan maintained:the values in periods are as per the values mentioned in invoicing plan Case 2:Invoicing plan not maintained:The activity value is set in the period of the latest activity start date.Also the system determines the price from the purchasing info record or the activity value. Invoicing plan has priority for the values If an invoicing plan has been maintained, the values in the periods are set as specified in the invoicing plan. Otherwise, the activity value is set in the period of the latest activity start date. The invoicing plan has priority for the values. If no invoicing plan has been maintained, the system determines the price from the purchasing info record or the activity value. Material components: Case 1:Invoice plan maintained:the periods and ,in some cases,values are taken from invoicing plan Case 2:Invoicing plan not maintained:The system determines the price from the purchasing info record or the price is taken from material master as per valuation variant.Here material requirement date determines the period If an invoicing plan has been maintained, the periods and, in some cases, the values are taken from the invoicing plan. If no invoicing plan has been maintained, the values are taken from the purchasing info record or the price is taken from the

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material master per the valuation variant. In this case, the period is that from the material requirements date.

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The customer accepts the quotation. A sales order is created in the system, where appropriate using the quotation as a template. The activities listed in the quotation are entered in the sales order as sales order items. The items are assigned to the project. They are used for revenue planning and for posting revenues to the project by means of milestone billing. Two companies are responsible for executing the project - IDES AG and IDES UK. IDES UK creates a sales order for IDES AG and assigns the document item to the billing element T-100##.1.2. Later on, IDES UK bills its services to IDES AG on a resource-related basis. A billing request is created in the system via resource-related billing. This is billed and results in revenues for IDES UK.

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In SAP where project is a controlling object: • Sales order created and after structuring of project sales order will assigned to WBS. Then revenue planned in sales order. • Once Work completed in project, actual cost captured in WBS and Final product will be delivered to Client. • Billing will be completed and actual revenue generated. Actual Revenue will be transferred to WBS. • While Result analysis performed for project the Actual Revenue and Cost will settled to the profitability segment. Sale document structure • Sales Document type represents the type of business transaction and functions and the flow of document with in sale order. Processing. • Item Categories are assigned to sales document category. While creation of Sales order it will default the item category but can change it as per requirement. • Schedule line category is assigned to Item Category. While creation of document system will default the scheduled line category but it can changed according to requirement.

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Item Category • Item Category is determine by Sales Document type and the material’s Items category group in a sales order. • Item Category controls function for Sales Order like Item Type, Pricing, Billing Plan, resource related or delivery related. • It controls if pricing is relevance for billing, relevance for Delivery Schedule Line Item, and contains Incompletion Log and Partner text.

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(1)Represents a process of make-to-order production without a work breakdown structure. In this case, the sales order item is the contolling instrument. assignment category E specifies that the sales order item forms a separate CO object. Costs and revenues of the sales order item are usually settled to the profitability segment. (2)Using assembly processing, you can generate a network when you create the sales order. When you save your data, the system creates a WBS and assigns the sales order item to a WBS element in this WBS. In this case, the sales order depicts the sales view, the project is the controlling instrument, and logistical processing is represented by the network. assignment categories D or Q (Cons. = P in each case) specify that revenues are assigned to the billing WBS element of the project. (3)As an alternative to assembly processing, you can assign a sales order item to a WBS element in a project. Controlling takes place in the project. You can assign orders or documents to the project. Value assignment to the project is controlled via assignment categories G, D and Q. These differ from each other in the way that they manage quantities.

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Methods for plan revenue in a project are: a. Manual revenue planning: this can be based on structure or revenue element where the later is a cost element and period based. b. PS billing plan: this is cost element and period based planning. c. SD document: this is part of integration with SD module where sales order item or quotation items are used as revenue planning. This kind of planning is cost element and period based.

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Revenues can be planned in projects using the following methods: Manual planning in billing elements in the project structure. This type of planning can follow the same procedure as cost planning, or can be by revenue element. Sales orders (all SD documents assigned). Sales order items are assigned to WBS elements. In Customizing, you can stipulate, for a combination of sales document category (quotation, order, and so on), sales document type, controlling area, and system status, whether the billing data (for example, in a billing plan) from a sales order should update the revenue plan for an assigned WBS element. The dates and planned revenues concerned originate either from the billing plan for the sales order items or (if there is no billing plan) from the net value and apportionment data for the item. The revenue element originates from G/L determination in SD. Billing plan in project billing elements. The revenue element is defined in Customizing.

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There are different ways of creating billing plans: Manually By copying a reference billing plan In SD and PS, reference billing plans can be called upon automatically By copying billing milestones from work breakdown structures or networks By copying billing milestones automatically from the network in assembly processing

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In the SD document, you can define a detailed billing plan with a number of billing dates instead of just a single billing date. A billing plan is a schedule containing individual billing data for a particular sales document. Milestone billing is widely used in projects (for example, construction projects). If you use milestone billing, the total value to be billed is apportioned to the individual dates in the billing plan per defined rules. Billing plan dates can be blocked for billing You can set billing blocks manually or remove them by activating billing milestones. As of Release 4.0, billing plans can also be entered for billing elements in projects. Such billing plans can, if required, be copied to the sales order later (make sure you delete any existing billing plan in the billing element; if you do not, the planned revenues will be determined via the PS billing plan and not the SD billing plan). A billing plan can contain down payment dates. These dates affect payment, but not revenue.

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The term "Version" is used in the project system in different contexts. Different types of versions include simulation versions, project versions and CO planning versions are available in SAP Project System which are discussed below.

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Project versions, are snapshots of a project at a specific point in time, and are used for documenting the progress of a project over time. Both quantities and values are stored in versions and it can be created either manually, or automatically when a status changes. In the case of status change, the project profile contains a reference to a version profile which specifies the name of the project version to be created when a particular or system status is set.

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Simulation versions: In the Project System, these are versions that you can change. You might, for example, create simulation versions in the following situations: • In the quotation phase: generally speaking, at this stage there is not yet an operative project. • To draw up alternative planning scenarios for existing operative projects or parts of these.

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CO plan versions are used to plan revenues and costs. You can copy values from one version to another. You can change planned values manually in every version and cost values are retained.

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Simulation versions are used to draw up alternative "what if?" planning scenarios. They are created manually, can be changed, and, if necessary, deleted again which is unlike released operative WBSs with activities.

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Simulation versions are useful during the quotation phase of a project and possible to plan several simulation versions.

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You can create simulation versions even at the time of execution of project, where you can copy from operative to simulation versions, compare, analyze and work with other versions and transfer them back to the operative project.

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When an operative project is copied to a simulation version or vice versa, a log file is created which contains the objects that were transferred and any error messages that were issued in the process.

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Simulation versions can be created either for an entire WBS, or for sub- hierarchies of a WBS.

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Simulation versions are edited in the project planning board or in project planning board from SAP R/3 4.6C release.

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The system performs the test run while transfer to check if the operative or simulation version can be transferred.

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Multiple Simulation version can be created, compared and evaluated.

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Simulation customization consists of two steps: 1. Version keys: one should work with permissible version keys since these cannot be deleted once simulations has been created. 2. Simulation profile: This determines which all objects will be copied while creating simulations (in addition to the structure information) from simulation to operative (and vice versa). If there are no simulation profile, all the texts will be copied. The simulation profile will be defaulted in the project due to assignment in project profile. Just like project version, simulation versions can be compared with each other in information system, whereas the cost element report does not the simulation versions. Unlike operative projects, simulation versions cannot be changed in structure info system.

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•

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When you transfer data from operative projects to simulation versions (or vice versa), the following objects are copied: • Work breakdown structure •

Network with activities, activity elements, relationships, and subnetworks

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Milestones

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Materials for the activity

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Documents, PS texts and long texts (depending on the simulation profile used)

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Capacity requirements

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Invoicing plan for the network, and billing plan for the WBS element (as of Release 4.5A)

The following objects are not copied: • Other orders (e.g. no production orders) •

Production resources/tools

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Project versions enable you to record a snapshot of a project at a specific moment in time - this can be used for future comparison with the operative project.

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You can create a project version automatically (i.e. triggered by a system or status).

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You can also create a project version manually: • While changing the WBS •

While changing the network

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In the Structure/Dates information system for one or more projects

Data transfer when Version profile settings are used while using these transactions: 1. Status dependent project versions. 2. TC network maintenance CN22 or WBS element maintenance CJ02 Data transfer which is Independent of version profile and dependent on database profile: 3. TC CN71 and CN72 4. Structure information system

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The version profile is maintained in the PS customization and assigned to Project profile or network profile.

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You use a version profile to define two different kinds of information. First, you specify which version is created automatically when a specific system status or status is set. Second, you specify which data is to be written to the versions that are created automatically.

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You need to define a version profile, if you wish to have versions created automatically, or if you wish to generate versions directly when editing the WBS or networks.

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You do not need to define a version profile, if you wish to generate versions manually from the Structure/Dates information system.

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The version profile is entered in the project profile and network profile.

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Project planning board is a tool in SAP PS which helps and enable you to process / edit the entire project structure which are WBS element, activities, relationships, milestones, material components, PS texts, documents and assigned objects to them. It is similar to Gantt chart based on interactive SAP environment. This comprises of hierarchy structure of your project and the corresponding date situation. You can custom made the display in project planning board to suite your requirement. Project planning board can also be useful for planning dates and resources i.e. work, external processing, for planning costs using activities.

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• Project planning board profile contains default values for the appearance of planning board. • The settings in this project planning board profile is valid for both, simulation versions and operative projects. • The graphical display can be changed and adapt as per needs in the planning board and customization using project planning board assistant.

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• Project planning board is a graphical interface based on Gantt chart which can be used for creating and maintaining data like project definition, WBS element, activities, relationships, milestones, documents and PS texts. • Useful for Scheduling and monitoring. • You can view date view, and other overviews of project at the bottom of Gantt chart like capacity overview. • You can view logs, hierarchal graphic of WBS element and Networks and network activities. • This is the only transaction where we can change simulation versions for releases earlier than SAP R34.6C, i.e. create of change of WBS elements in simulation version based on the specific options. • The entire period in the project planning board screen is called as Evaluation period which consists of Pre-evaluation period, Planning period and Postevaluation period. These are defined by time settings and determined by 3 profiles which are created in customizing and assigned to project planning board profile.

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Assembly processing will be helpful while one is planning and producing or servicing same product for several times with similar constellations. Which means the basic structure will be same while data like duration, dates, quantities etc. will be changing. In assembling processing, a network and WBS element & Project (if required) is automatically created based on the customization, while a sales document is created and saved. The project number is derived from Sales document and this process generates assignment between sales document & project. This incurs that the same information will be shared by sales and project team. If the data is changed in Project will update Sales document (and vice versa) which helps in delays and disagreement between sales and project department. Process flow: If a sales order is created for a material which has strategy group for assembly processing has been assigned, the assembly processing will start. The MRP processing is omitted in the assembly processing and creates a operative order (network in case of PS) directly from sales order. Assembly processing is carried out statically in PS which means only one network for one sales document item. Based on the customer requirements date, backward scheduling is carried out and availability check is done for required material components. Which enables to inform customer about feasibility of required date or else system will propose new date.

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Also, the calculated cost will be transferred from network the sales order. While saving the sales document, WBS element structure & project definition will be created which is identified by sales order number. Since the sales document and the project is directly connected, any changes one object will update / reflect in other automatically.

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The requirement class which is assigned with the sales order while creating it will start assembly processing, one assembly order automatically created by system and start assembly processing in the back ground. By this method MRP is ignored and an operational order created directly from Sales Order. Below is the list of Assembly order which can be created:Network, Production Order, planned order, Plant maintenance or Service order and Process Order. Assembly Processing contains all the date of Sales order and assembly order. So if there is any change done later to any document it will reflects in both document.

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