Describing Typical Activities in Investment Projects

Objective

After completing this lesson, you will be able to evaluate the steps for the planning and execution of investment projects at Hybrid Machinery

Investment Projects at Hybrid Machinery

The Dialogue

Note

In the following part, you can see the dialogue between James, Linda, and Thomas regarding the question of how to process Hybrid Machinery's investment projects using SAP S/4HANA.

Thomas starts by stating his intentions regarding an investigation on how to process Hybrid Machinery's investment projects in SAP S/4HANA.

James then explains what the responsibilities of a project planner are at Hybrid Machinery. Linda supports him from an Accounting perspective, and explains the processes in Controlling related to these types of projects.

Refer to the following video for their actual conversation:

To summarize the preceding conversation:

The planning and execution of an investment project at Hybrid Machinery consists of the following steps and responsibilities:

  • The project planner creates the project plan and the project structure, possibly with the help of a template. Responsibilities and work packages are defined, using the work breakdown structure (WBS).
  • The project planner then also often takes care of setting up the project team.
  • The project controller takes care of the cost planning and calculation. A planing template for cost planning in the form of Easy Cost Planning can be used.
  • The project controller (together with the steering committee) then takes care of the budgeting for the investment project. An active availability control is then used during the realization phase of the project to ensure the budget is not exceeded.
  • After approval (and when it's time to start the work), the investment project is released.
  • People working on the project will record their project-related work in the system using activity allocations. External services and materials can also be procured for the investment project.
  • The project controller also takes care of the period-end closing activities for the investment project, like overhead calculation.
  • Assets and assets under construction are also created in Asset Accounting, and depreciations can be posted.

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