Planning Costs for Networks

Objectives

After completing this lesson, you will be able to:

  • Plan costs for networks

Cost Planning for Networks

Discussion Between James and Linda About Cost Calculation in the Logistics Project

After the project planning is finished for the logistics project, James (who works as the project planner) discusses with Linda (who works as the project controller) how costs are calculated in the logistics project.

Note
See the following video to follow their conversation:

Cost Planning in Projects

You can plan costs for a project in the SAP Project System (SAP PS) based on Work Breakdown Structure (WBS) elements and/or network activities.

This lesson focuses on cost planning using activities. Some customers use networks without assigned WBS elements. However, most customers use networks and activities assigned to WBS elements. Planned costs are aggregated from activities to superior WBS elements.

Note
A benefit of the network costing method is that it can be copied to a new project and, if parts of the project are moved, cost planning is moved automatically along with the activities. In addition, planning is done by means of cost elements and is period-based.

Network Costing

When you plan dates and resources in network activities, the system can automatically determine the corresponding planned costs as a result of network costing.

Planned costs are determined for the following objects:

  • Activity inputs for internally processed activities (internal activity)
  • Primary costs for externally processed activities and service activities (external service)
  • Primary costs for general costs activities
  • Primary costs for material components

You can use network costing in the following ways:

  • Manually
  • While saving the network
  • Asynchronously using the transaction for network costing (CJ9K )

Costing of networks is also based on cost elements. Planned costs are distributed to periods according to the network schedule.

How to Execute Network Costing

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