As a project controller, you have been asked to plan the costs for the forklift project. The project includes WBS elements, network activities, and assigned orders.
Performing Cost Planning in Networks
Objective
After completing this lesson, you will be able to perform cost planning in networks
Business Example
Cost Planning Methods
Cost Planning Methods
You can plan costs for a project using two techniques:
Manual cost planning in the WBS
Automatic or manual cost planning using networks and assigned orders
When you use networks and activities, planned costs are automatically calculated based on the resource requirements identified for activities and operations. Resources provide a type of quantity structure that can be dynamically valued by the system. This method has the following advantages:
The resulting plan data can be copied to new projects.
If parts of the project are rescheduled, cost planning is shifted automatically with activities.
Costs for network activities are planned by cost element and period.
In SAP ERP 6.0 enhancement package 3, you can activate and use Easy Cost Planning to plan costs on network activities.
When you plan dates and resources in network activities, the system automatically determines the corresponding planned costs. Planned costs can be automatically determined for all order types that include a quantity structure, such as plant maintenance, production, and service orders.
Planned Costs in Networks
Activities and components provide a type of quantity structure that the system can value.
All items relevant to cost calculation need to identify a cost element. For internal activities and processes, the cost element is determined by the secondary cost element assigned in the activity type master record. For external activities, external services, and non-stock materials, the cost element shown in the activity detail screen matches the general ledger (G/L) account that is defined for the purchasing transaction. For stock materials, cost-relevant items are determined by automatic account determination. Overhead cost allocations are assigned as secondary cost elements through the overhead sheet.
Planned Costs
You can determine planned costs for several objects.
Activity inputs for internally processed activities
Primary costs for externally processed activities and services
Primary costs for general cost activities
Primary costs for material components
You can also determine planned costs for activities by using Easy Cost Planning for network activities.
Project Cost Planning Using Activities
Planned Costs for an Activity
In addition to the cost of the activity, the planned costs for an activity can include the following items:
Components, which include the material planning allowance
Overhead determined through an overhead costing sheet
Process costs determined through a process template
Activity elements
You can calculate costs automatically depending on the activities created and whether they are assigned to WBS elements or defined in a standalone network. Costs that are calculated are determined by period, based on the schedule determined by the network.
Advantages of Automatically Planning Primary Costs or Activity Inputs
Automatically planning primary costs or activity inputs has significant advantages over manually completing this process for the following reasons:
Cost planning is integrated with time scheduling and resource planning. Using activities enables a single data item to update scheduling, resource planning, and cost planning.
If the schedule for an activity or work package is shifted, cost planning dynamically recalculates the period costs.
When you create new networks by referencing standard or operative project data, activity details are also copied. This functionality enables you to copy the cost planning of one project to a new project.
Network Account Assignment
Header-assigned networks store all the activity and material component costs at the network header level and behave in the same way as all other categories.
Costs are summarized in WBS elements when you assign the network header to a WBS element. Assigning activities to WBS elements is, in this case, only used to summarize dates.
If you assign networks to sales orders that are not assigned to a project, use header-assigned networks, since you cannot make an assignment for a sales order item in the network activity.
Activity-Assigned Networks
In the case of networks, activities can be account assignment objects. Costs are collected on activities, not on the network header. Plant/network type parameters determine if the network header or network activities are cost objects. If you choose network, all activities in the network are assigned to the same WBS element. Choose activities as account assignment objects if activities are assigned to various WBS elements.
Activity-assigned networks are usually used when activities are assigned to various WBS elements. Use header-assigned networks when networks are assigned to sales orders without a WBS. You can also use header-assigned networks when the entire network is assigned to a single WBS element.
In activity-assigned networks, each activity in the network is an account assignment object.
You can analyze planned costs, commitments, and actual costs for each activity. Costs are aggregated and displayed for WBS elements to which activities are assigned.
Activity account assignment is a special feature of networks. All other order types are header-assigned. You control activity account assignment by setting the appropriate indicator in the Parameters for Network Type table.
Controlling parameters, such as costing variants, are defined in the network header. Other parameters, such as overhead sheet, results analysis key, and settlement rules, are defined for each network activity.
Network Costing Paths
Based on the transaction, you can calculate the costs for a network, such as network maintenance or a range of networks. For example, you can calculate the costs for all networks for selected WBS elements in structure planning or the project planning board.
You can also calculate network costs asynchronously. The advantage of this method is that you can select and cost broader ranges (for example, A to Z) and perform costing in the background.
Note
Asynchronous costing is required for payment planning analysis.