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Planning Costs for Networks

Objective

After completing this lesson, you will be able to plan costs for networks

Cost Planning for Projects

Cost Planning in Projects and Networks

Examples of functionality for cost planning in projects are: projects and orders, overall planning, cost element planning, unit costing, SAP BPC, Easy Cost Planning, and network costing.

You can plan costs for a project in the SAP Project System (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.

Hint

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

James and Linda Discuss Costing in Networks

James is a project planner at Hybrid Machinery. Linda is the project controller. They discuss the costing process in a network.

Note

This is their conversation:

Costing in Networks

An example of network costing is shown.

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

Activity elements are calculated in the same way as activities. Overhead costs are calculated according to the configuration of the network.

You can use network costing in the following ways:

Manually
While saving the network
With the specific network costing (CJ9K transaction)

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

Plan Costs for Networks

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