Controlling Research and Development Projects

Objective

After completing this lesson, you will be able to use Project Control for Research and Development Projects.

Project Control: Research and Development

This scenario describes a project where the Research and Development activities related to the design of a new product are managed. Therefore, it supports the product development process by managing the related project costs, milestones, budgets, and approvals. After releasing all or parts of the project, it is executed and project-related purchasing can be performed.

Applicable Process Steps

To sum up the steps you saw, here are the general process steps listed:

  • Project Controller: Creates an R&D Project
  • Project Controller: Predicts and captures Project costs
  • Project Controller: Assigns Project budget
  • Project Steering member: Reviews Project and milestones
  • Project Controller: Collaborates on product design
  • Project Manager: Performs time recording
  • General Ledger Accountant: Posts general journal entries
  • Project Controller: Monitors, completes, and closes the Project

Benefits

The benefits of working with project control for sales are:

  • Capture planned project costs and allocate budget
  • Use machine learning for project costs forecast
  • Assign accounts to documents in financials and procurement or external applications to capture actual costs
  • Monitor project-related purchase requisitions and purchase orders
  • Receive live insight into project costs by comparing plan and actual costs as well as commitments
  • Integrate to Product Lifecycle Management objects for product engineering

Note

This process flow is covered in Scope Item: 35E - Project Control - Research and Development Projects.

How to Control Research and Development Projects

Introduction: Controlling R&D Projects

This scenario describes a project where the Research and Development activities related to the design of a new product are managed.

Task 1: Create a Project

In this task Project Financial Controller Shubham creates an R&D Project.

He starts with the creation of the main project and the definition of necessary data.

Then two subordinated elements are also created.

Task 2: Upload and Assign Planned Costs and Budget

The template for planned costs and budgeting is downloaded on a local PC.

He defines necessary data inside an Excel sheet.

At the end he uploads these data to SAP.

Task 3: Define a Demand

In this task Anna, project Controller for Resourcing and Procurement, creates a material demand for this R&D project.

The demand type is defined for a non stock material.

When the demand is saved, a purchase requisition number is created.

Task 4: Release the Project

In this task Shubham releases the project.

Also he defines the actual start date for every WBS element.

Task 5: Perform a Time Recording

In this task, for example, Warehouse Clerk Susan enters her time recording via the Manage My Time Sheet application.

As no task type for the R&D project exists, she creates this task type.

Then she saves her effort for the R&D project.

Task 6: Process a Procurement Demand

Anna processes the project procurement demand.

The purchase requisition number was created in previous task.

As a first step the purchase order is created.

Then a goods movement is posted, in this case a goods receipt for the purchase order.

At the end the material demand is closed.

Task 7: Post General Journal Entries

General Ledger Accountant Stefan posts actual primary costs to the WBS elements.

Therefore, he chooses the app for posting general journal entries.

The necessary data together with the R&D WBS element are added by Stefan.

Task 8: Monitor the Project

Anna, the project manager responsible for resourcing and procurement, is also performing typical project management tasks.

She begins by reviewing projects created by Shubhum, her project financial controller, using the project financial controller overview app.

After examining an R&D project’s details, she checks cost-to-date information and the cost timeline.

Anna then explores other SAP Fiori applications, including the project cost report app, where she reviews both aggregated and non-aggregated cost data for specific WBS elements.

Finally, she utilizes the P&L plan/actual app to analyze all available project data before returning to the home screen.

Task 9: Close the Project

At the end, the project is open for final checks.

As no errors are visible, Shubham sets the project status to completed and then to closed.

Summary

After completing this lesson, you're able to:

  • name the benefits of using Project Control for Research and Development
  • set up a new Project for R&D
  • import Financial data
  • define a Material Demand
  • manage a Timesheet
  • post General Journal entries

Learning

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