Introducing Finance and Intercompany Project Control

Project Control for Finance is a comprehensive functionality in SAP S/4HANA Cloud that enables companies to manage project progress and costs effectively within specified budgets. It provides a Work Breakdown Structure (WBS) as an accounting structure to plan, execute, monitor, and control project-related financial activities throughout the entire project lifecycle.

• The Work Breakdown Structure serves as the core accounting structure for capturing and organizing project costs across hierarchical project elements.
• The Budget Management enables efficient planning and allocation of project budgets with availability control mechanisms.
• The Cost Planning and Capture supports uploading planned project costs and capturing actual costs through various business processes.
• The Settlement Framework allows settlement of project costs to cost centers, G/L accounts, or asset accounting.

Project Control for Intercompany is a functionality in SAP S/4HANA that enables companies to manage projects where an affiliate company delivers services to the ordering company during project execution. The affiliate company posts expenses and records time on the project, which are then transformed into debit memo requests for automated intercompany billing and settlement.

• The Intercompany billing component transforms expenses and time recordings into debit memo requests and creates intercompany invoices with reference to these requests.
• The Cross-company project structure serves as an accounting structure across multiple company codes and enables project planning and cost tracking.
• Direct activity allocations, overhead applications, and settlement processes can be executed at period end for proper cost distribution.

After completing this lesson, you're able to:

• give a brief overview of the SAP Project Control for Finance and Intercompany capabilities
• understand the benefits of using SAP Project Control for Finance and Intercompany
• give a brief overview of the main processes of Project Control for Finance and Intercompany