Controlling Sales Projects

Objective

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

Project Control: Sales

As a core ERP functionality, the integration of projects with the sales orders enables the direct flow of revenues to the project. In conjunction with the costs incurred, the margin can be easily analyzed.

Project Control for Sales starts with the creation of the project needed. Using the Projects with revenue profile, the user can create a hierarchy as an accounting structure, set up billing elements, and plan costs and revenues. When the project is released, actual costs and revenues are captured, allowing the project profitability to be analyzed.

The sales order is created with a billing plan. Deliveries, pickings, and related activities take place. Finally, invoices are created.

The following video explains how different users and roles contribute to these tasks.

Applicable Process Steps

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

  • Project Financial Controller: Creates and releases a project

  • Project Manager: Describes Project, sets, and completes milestones

  • Internal Sales Representative: Creates a sales order with a billing plan with down payment

  • Shipping Specialist: Create delivery, execute picking, and post goods issue

  • Billing Clerk: Creates Invoice

Benefits

The benefits of working with project control for sales are:

  • Support fixed-priced billings, down payments, and free-of-charge processes

  • Get actual revenue postings driven by sales order processing

  • Get real-time availability of revenue recognition data and profitability

  • Save manual effort for revenue recognition postings

  • Support more complex hierarchical project accounting scenarios through enablement of multiple billing elements within a project

Note

This process flow is covered in Scope Item: 4I9 - Project Control for Sales.

How to Control a Sales Project

Introduction: Controlling Sales Projects

As a core ERP functionality, the integration of projects with the sales orders enables the direct flow of revenues to the project. The margin can be easily analyzed along with the incurred costs.

Task 1: Create a Revenue Project

In this first task, Project Financial Controller Shubham creates a project with a revenue profile.

This project type is used to support the planning and monitoring of sales-related costs.

Task 2: Update a Project

Shubham created the header WBS element in a subsequent task. Now, he defines subordinated WBS elements for planning and execution.

Some data were defined outside of SAP Project Control. Therefore, he downloads a planning template, fills in the data and finally uploads the planning template. At the end, he releases the project.

Task 3: Create a Sales Order and Perform a Delivery

Internal Sales Representative Kate creates a sales order: The order item includes a billing plan, with the first item being a down-payment item. Inside the sales order, a project is linked to the item as an account assignment.

Lionel, the Billing Clerk, creates the billing document with a billing type for down-payment request.

Then he posts incoming payments.

Finally, Lionel creates an outbound delivery.

Summary

After completing this lesson, you're able to:

  • name the benefits of using a Project Control for Sales
  • set up a new Revenue Project as a Sales Project
  • create a Sales Order
  • perform a Delivery

Learning

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