Introducing Project Control - Capital Projects

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Introduce project control - capital projects

Introduction to Project Control- Capital Projects

Process Overview: Project Control - Capital Projects (35F)

Capital or Investment Projects are used by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life that extends beyond the taxable year.

The Capital Investment Project Management (35F) scope item covers the end to end management of project related investments in an organization.

  • It covers all the aspects from project creation, planning, budgeting, execution, and monitoring enabling an all-time transparency to all project stakeholder

  • It covers the investment project process wherein the cost is captured for asset under construction (AUC) and once the AUC is completed the cost is settled to a fixed asset.

  • It provides insights to the stakeholders and avoids budget overruns and project delays.

This scenario helps you to manage and control the enterprise wide project related investments. Starting with project creation, it covers project planning, budgeting, execution, and monitoring enabling an all-time transparency to all project stakeholders. This way it reduces the risk of budget overruns and project delays. Special functions can be used for investment projects. Investment projects are used to capture the costs of assets under construction (AuC) during the construction phase. Once the AuC is complete, the final asset is created in the appropriate asset class, and the investment project is set to complete. The next settlement transfers the AuC asset value to the completed asset.


This process helps you to:

  • Capture planned project costs and allocate budget

  • Leverage machine learning for project costs forecast

  • Integrate to Asset Accounting

  • Gain more transparency into key financial data across projects using advanced graphical reporting options

  • Assign accounts to documents in financials and procurement or external applications to capture actual costs

  • Monitor project-related purchase requisitions and purchase orders

  • Receive live insight into project costs by comparing plan and actual costs as well as commitments

Key Process Steps Covered

  • Inform project manager using SAP Co-Pilot

  • Describe project

  • Predict project costs

  • Capture planned costs

  • Update status and add milestones

  • Review project

  • Upload project budget

  • Release project

  • Record time

  • Requisitioning

  • Procure services

  • Post general journal entries

  • Monitor projects

  • Run actual overheads

  • Settle Assets Under Creation

  • Update status and complete milestones

  • Review project

  • Adjust project budget

  • Technically complete project

  • Record time

  • Post general journal entries

  • Monitor project

  • Create fixed asset

  • Maintain settlement rule for final settlement

  • Allocate overheads

  • Final settlement of the investment project

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