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.
Benefits
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