The content of this Unit corresponds to scope item J11.
The Customer Project Management scope item realizes the key steps of the end-to-end process for Project Services. It covers core processes like Planning, Creating, Maintaining, and Reviewing the Customer Projects with required project structure-related entities like activity types, projects roles, resources, and so on. This scope item offers you the complete lifecycle of the customer project and facilitates the monitoring of financial Key Performance Indicators (KPIs).
The Project management framework is inherently coupled with the sales engine of the Sales module, it allows you to create customer invoices for time and expenses (including external services), recorded against a customer project. Invoices can be created on a time and materials basis, a fixed-price basis, or as periodic services, as usage based, or a combination of all types. It’s imperative to maintain all the prerequisite data, like the cost and selling price of the Activity Type/Materials, in order to calculate the cost and revenue for the customer projects.
You can also derive contract values and obtain automation calculations on the contract margins. After the customer invoice is issued, customer payments can be monitored. During period-end closing activities, accounting and financial close activities can be performed. This scope item also supports the analysis of project profitability based on project costs and revenues.
With recent developments, you can now create customer projects automatically from project items in solution orders. Project items in solution orders (SOPR item category), indicate services to be delivered as customer projects and this requires the 4GT scope item (Solution Order).
Key Process Steps
Customer Project Management allows you to:
- Create and manage customer projects.
- Maintain customer projects during different phases.
- Maintain work package staffing of customer project.
- Procure external services for customer project.
- Record times for customer project
- Maintain customer project billing.
- Create customer invoices.
- Analyze customer projects.
- Perform accounting and financial close activities.
- Perform period-end closing activities.
The Customer Project Management benefits are:
- Defining and managing projects easily
- Staffing projects intuitively
- Integrating to SAP SuccessFactors Employee Central natively
- Entering employee times easily for all project members
- Recording project-related expenses: single source of truth, no aggregates
- Deciding quickly with cross-project and client reporting
- Drilling down to all project-related analytics and KPIs flexibly
- Managing billing request proposals
- Creating a single customer invoice with all necessary details
- Performing fast periodic closing, with no more reconciliation
- Making predefined processes and business content available
- Creating a baseline of an internal project and compare it with the current one.
The Customer Project Management is tightly bound by other scope items, which provides a foundation for forming a complete solution for Project Management. The work package and billing structure is a two-level SAP Project System (PS) structure. The resulting sales order is part of the SAP Sales and Distribution (SD) module. The frame around both is based on the SAP Commercial Project Management (CPM) add-on, which builds a container to collect all information and data, according to the project.