Configuring Project Control - Research and Development Projects

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Configure project control - research and development projects

Master Data for Project Control- Research and Development Projects

Required Master Data Scripts

To run this process you need the Master Data scripts:

  • Cost Center and Cost Center Group

  • Activity Type and Activity Type Group

  • G/L Account and Cost Element

  • Profit Center

  • Asset

  • Requirement Model

  • Requirement

  • Material

  • Material BOM

Master Data: Cost Center and Cost Center Group

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.

You can use the master data script BNM — Create Cost Center and Cost Center Group to create cost centers and cost center groups.

Business Roles

The business role required to run this master data script is: Cost Accountant - Overhead (SAP_BR_OVERHEAD_ACCOUNTANT)

Process Steps

The process steps applicable for this master data script are:

  • Create Cost Center

  • Change Cost Center

  • Display Cost Center

  • Create Cost Center Group

  • Change Cost Center Group

  • Display Cost Center Group

Master Data: Activity Type and Activity Type Group

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 to create activity types and activity type groups.

Business Roles

The business roles required to run this master data script are: Cost Accountant - Overhead (SAP_BR_OVERHEAD_ACCOUNTANT)

Process Steps

The process steps applicable for this master data script are:

  • Create Activity Type

  • Change Activity Type

  • Display Activity Type

  • Create Activity Type Group

  • Change Activity Type Group

  • Display Activity Type Group

Master Data: G/L Account and Cost Element

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 to create G/L accounts and cost elements.

Business Roles

The business role required to run this master data script is: General Ledger Accountant (SAP_BR_GL_ACCOUNTANT)

Process Steps

The process step applicable for this master data script is: Creating G/L Account

Master Data: Profit Center

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 to create profit centers.

Business Roles

The business roles required to run this master data script are:

  • General Ledger Accountant (SAP_BR_GL_ACCOUNTANT)

  • Controller (SAP_BR_CONTROLLER)

Process Steps

The process steps applicable for this master data script are:

  • Creating Profit Center Master Data – General Data

  • Assign Profit Center to Cost Centers

Master Data: Asset

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 to create assets.

Business Roles

The business role required to run this master data script is: Asset Accountant (SAP_BR_AA_ACCOUNTANT)

Process Steps

The process steps applicable for this master data script are:

  • Create Asset

  • Change Asset

  • Display Asset

  • Block Asset

  • Delete Asset

  • Create Asset Sub Number

  • Change Documents for Asset master Record

Master Data: Material

A finished good is a material or product that has received the final increments of value through manufacturing or processing operations, and that are being held in inventory for delivery, sale, or use. The material or product master contains information about all the physical materials that are procured, produced, stored and sold. It is also used to manage information about services (Example: buying and selling services in hours). The material master holds information such as unique material number, name, material type, unit of measure, descriptions, weight and dimensions. This material information is used and stored in transactions such as sales orders, deliveries, purchase orders and goods movements. All material information is stored centrally and master information is organized into different views. Some information in each material is specific to particular organizational units. For example, a sales description is specific to a sales unit (sales area) and an MRP controller is specific to a specific site (plant).

You can use the master data script BNT - Create Product Master of Type "Finished Good" to create finished goods.

Business Roles

The business role required to run this master data script is: Product Master Data Specialist

Process Steps

The process steps applicable for this master data script are:

  • Create Material Master Data - Basic Data

  • Create Material Master Data - Purchasing Data (Sales Tax Data)

  • Create Material Master Data - MRP/Planning Data (Plant Data)

  • Create Material Master Data - Storage Location Data

  • Create Material Master Data - Accounting Data (Valuation Data)

Master Data: Material BOM

A bill of material is a formally structured list of the components that make up a product or assembly (part of a product). The list contains the object number of each component, together with the quantity and unit of measure. A component might be a raw material or a semi-finished material representing an assembly. Bill of Materials (BOM) usage defines the area (such as engineering/design or production) where a BOM can be used.

You can use the master data script BNK - Create Production Bill of Material to create bill of materials.

Note

When creating a BOM, select the correct BOM Usage for your scenario.

BOM UsageDescription
1Production
2Engineering/Design
3Universal
4Plant Maintenance
5Sales and Distribution
6Costing
7Empties
8Stability Study
CConfiguration Control
YProduction Rework EX Stock

Business Roles

For this scope item, the business role required to create material BOM, is: BOM Engineer (SAP_BR_BOM_ENGINEER)

Process Steps

To create a material BOM, follow these steps:

  • Log on to the SAP Fiori Launchpad as a BOM Engineer and open Maintain Bill of Material app.

  • Choose Create BOM.

  • Enter the Material, BOM Usage and Change Number.

  • Choose the Components tab. In the Components table, choose Add.

  • Add a new item, its Item Category and Component quantity. If adding a software material item, choose Maintain Software button on the table toolbar and on the Maintain Software screen, search for the software document and assign it.

  • Check for the BOM item details and Save.

How to Access SAP S/4HANA Cloud Scope Item Master Data Scripts

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

Configuration Apps for Project Control- Research and Development Projects

Applicable Configuration Apps

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 SolutionConfigure Your Solution.

SSCUI: Create Project Types for WBS Elements

You can use this to create project types for project structure elements. Project types are used to group projects based on a certain category, for example:

  • Capital-investment projects

  • Customer projects

  • Development projects

Note

It is optional to configure this SSCUI.

SSCUI: Project Coding Mask

This app is used to create or edit the coding mask that determines the structure of project element IDs. Based on the first character (which is the coding key) that you input in the Project Builder app for instance, the project ID takes the structure of the coding mask defined for the corresponding coding key. If no key exists for the first character, no coding mask is applied for the project element ID.

In addition, if you lock a coding mask, it means you cannot use the mask and its corresponding coding key to create the project element IDs.

Note

It is recommended to configure this SSCUI.

SSCUI: Maintain Budget Availability Profile

The Maintain Budget Availability Profile SSCUI is used to create the Budget Availablity control profile.

You can define multiple budget availability profiles and assign these profiles to objects, which are budget relevant.

For each profile, you define the tolerance limit for the budget usage rate. Then, you assign a system response to this tolerance limit, which alerts the user if the budget limit has been reached.

You can decide whether this system response should appear as a warning or as an error. If the system response is a warning, the user can continue using this budget.

For example, when a budget limit has been reached, you might want to prevent the creation of new purchase orders or requisitions.

Note

It is optional to configure this SSCUI.

Configuration

  1. Create a new budget availability profile.

  2. Define the tolerance limits for the budget usage rate.

  3. Select the relevant system response (Warning or Error).

After you have created the budget availability profile, you assign it to projects and activate the availability control profile for the projects that you want to control. You can assign and activate the Availability Control Profile in the Project Control app.

Finally, you must specify the budget that you want to assign to the project per fiscal year.

When you post an expense, which is tagged as an Actual Cost in the financial statement version YPS2, the available budget is checked. When the budget consumption reaches a defined limit, the system responds with either a warning or an error message. This system response depends on the settings that you have defined in the budget availability profile.

If you create a purchase requisition or a purchase order that is assigned to a WBS element, a commitment is generated. This commitment reduces the available budget.

The budget and the actual costs can be analyzed in the Project Budget Report app. Consider selecting the planning category Budget to analyze the budget that is assigned to the project.

Save progress to your learning plan by logging in or creating an account

Login or Register