Configuring Project Control - Capital Projects

To run this process you need the following Master Data:

• Cost Center and Cost Center Group

• Activity Type and Activity Type Group

• G/L Account and Cost Element

• Profit Center

• Create Asset

Cost centers represent organizational unit areas of responsibility to which financial costs can be assigned.

• Dividing an organization into cost centers allows you to follow several goals.

• Assigning costs to cost centers lets you determine where costs are incurred within the organization.

• If you plan costs at cost-center level, you can check cost efficiency at the point where costs are incurred.

• If you want to assign overhead costs accurately to individual products, services, or market segments, you need to further allocate the costs to those cost centers directly involved in the creation of the products or services. From these cost centers you can then use different methods to assign the activities and costs to the relevant products, services, and market segments. This enables you to valuate semi-finished and finished products in Product Cost Controlling (CO-PC), and to calculate contribution margins in Profitability Analysis (CO-PA)

Cost center groups represent a hierarchical structure of cost centers known as the standard hierarchy. Each cost center that is created must be assigned to a group in the standard hierarchy. This ensures that the standard hierarchy contains all the cost centers in the controlling group. When analyzing the standard hierarchy, the SAP system automatically includes all cost centers. Note that cost centers may be assigned to any number of alternative groups. However, alternative groups cannot be created when maintaining the standard hierarchy.

You can create the Cost Center and Cost Center Group master data using the master data script BNM (Create Cost Center and Cost Center Group - MDS).

Activity types represents the activities produced by a cost center within a controlling area. Activity types are uses to plan and allocate activities recorded and measured in activity units. Activity quantities are valuated using an activity price which is maintained on the cost center.

Activity types are used as follows:

• To determine the quantity-based output of a cost center. The plan activity quantities of production and service cost centers must be reconciled with the master production schedule in logistics. This determines the required plan activity quantity, as well as the plan capacity.

• To control the activity quantities on the cost centers. This enables the measurement of the operating rate or the rate of capacity utilization of a cost center.

In addition to manual planning of activity quantities, you can also use indirect activity allocation to plan activity quantities automatically.

Activity type groups are also useful in planning. Since there is no multiple selection tool available for activity types, activities can be collected in activity type groups to enable planning of several activity types at one time.

You can use the master data script BNN (Create Activity Type and Activity Type Group - MDS) to create the Activity Type and Activity Type Group

A general ledger account master record contains information about the account that controls how business transactions are posted to it and how it is managed.

The general ledger in SAP provides a comprehensive and entirely up-to-date view of all assets, payables and receivables accounts, and is fully integrated with the other SAP modules. Since all the SAP modules are integrated, some GL postings are generated automatically by the system in the background, for example the GR/IR account posting (Goods Received/Invoices Received) and inventory movement GL postings.

Some accounts are ‘open-item-managed’. They are used as a clearing account, so individual items can be cleared when, for example, incoming and outgoing payments and materials are processed. Other accounts, for example the customer and vendor reconciliation accounts cannot be posted to directly, since they are only a reflection of the business partners in the sub-ledgers.

You can use the master data script BNG (Create G/L Account and Cost Element - MDS ) to create the G/L Account and Cost Element.

A profit center is an organizational unit in accounting that reflects a management-oriented structure of the organization for the purpose of internal control. Dividing your company up into profit centers allows you to determine profit for internal areas of responsibility and to delegate responsibility to decentralized units.

The master data of a profit center includes the name of the profit center, the controlling area it is assigned to, and the profit center’s period of validity, as well as information about the person responsible for the profit center, the profit center’s assignment to a node of the standard hierarchy, and data required for communication (address, telephone number and so on).

You can use the master data script BNH (Create Profit Center - MDS ) to create the Profit Center.

A fixed asset is an object, a right, or another item owned by an enterprise that is intended for long-term use and can be individually identified in the balance sheet. Maintaining fixed assets involves creating, changing, and displaying asset master records.

The different items of information are structured according to area of use and functions in the system to make it easier for users to create, maintain, and evaluate master data.

You can use the master data script BNI (Create Asset - MDS ) to create the Asset.

1. Navigate to SAP Best Practices for SAP S/4HANA Cloud for Enterprise Management:https://rapid.sap.com/bp/#/BP_CLD_ENTPR .

2. Select a country localization from Version drop-down list.

3. Go to the Accelerators section and choose Create your own master data.

4. Locate the required master data script.

The following configuration apps are relevant for this scope item:

• Create Project Types for WBS Elements

• Project Coding Mask

• Maintain Budget Availability Profile

Note

Configuration Apps are the Self-Service Configuration User Interfaces (SSC UIs) in the SAP S/4HANA Cloud application Manage Your Solution → Configure Your Solution.