Integrating PSM with Overhead Accounting and Project Management

The integration of overhead accounting and project management allows for updating and monitoring overhead and project-related costs in Public Sector Management. It also facilitates the following:

• For this purpose, the PSM account assignments fund, functional area, and grant are integrated as input values in the cost center and WBS element master data.
• You can define PSM account assignments as default values or as mandatory account assignment values in the master data for cost centers/WBS elements (see chapter "Explaining Account Assignment Derivation").
• PSM-specific account assignments derivation logic per overhead accounting process can be found in Online Help → Public Sector Management → Integrated Components → Overhead Accounting and Project Management.
• PSM account assignments fund, budget period, grant, and functional area are available as input fields in actual overhead accounting postings.
• PSM account assignments are also available to define period-end closing activities like allocations (cycle/segments) and overhead calculation (costing sheet).

• The following actual postings are integrated with Public Sector Management:
  • Activity allocation (SAP Fiori app, Manage Direct Activity Allocation, SAP S/4HANA Time Recording, Time Confirmation in Plant Maintenance)
  • Repost direct activity allocation (SAP Fiori app, Manage Direct Activity Allocation)
  • Repost of costs (SAP Fiori app, Reassign Costs and Revenues)
  • Repost of revenues (SAP Fiori app, Reassign Costs and Revenues)
  • Manual cost allocation (SAP Fiori app, Reassign Costs and Revenues)
  • Repost line items (SAP Fiori app, Repost Line Items - Cost Accounting)
• You can also create statistical key figure values, including PSM account assignments using the SAP Fiori app, Manage Statistical Key Figure Values.
• The following period-end closing activities in overhead accounting are integrated with Public Sector Management:
  • Universal Allocation (Actual Cost Center Distribution and Overhead Allocation)
  • Overhead Calculation (Periodic and Event-Based)
  • Settlements

Example: Allocation cycle with derivation flags for receiver fund, functional area, and grant.

Example: Cycle segment with sender and receiver fund, functional area, and grant.

Consider the following in relation to the updating of CO processes:

• The budget consumption type of overhead business transactions are controlled using the G/L account type.
• Primary costs and revenues are updated in the universal journal (table ACDOCA) using the budget consumption type 66 (FI transfer postings), and secondary costs are posted with the budget consumption type 95 (CO Postings).
• In all other aspects (budget consumption amount type, budget consumption date, and others), overhead business processes react like financial accounting postings (see Unit 4, Lesson 1, Recording Commitments and Actuals).

Using the configuration activity, Define Budget Relevance of CO Processes, you can control per CO business processes if the related postings affect budget availability control or not. If you define a CO process as non-budget relevant, the budget relevance settings made for the affected G/L account master data (budget account) are overwritten.

The combination of both settings (CO process and budget account) produces the following budget relevance for CO postings:

An enterprise project can be structured by a work breakdown structure, which is a hierarchical model that splits up the enterprise project into smaller portions represented by WBS elements.

WBS elements are an integral part of PSM, supporting all processes from the creation of PSM budget documents, commitments (such as purchase requisitions/orders) and actuals (financial accounting and overhead cost postings) including active availability control.

PSM fields maintained in a WBS element allow the derivation of field values during postings (see Unit 2, Lesson 2, Explaining Account Assignment Derivation).

Using the Manage Project Demand app, you can plan and monitor human resources, services, and material demands for WBS elements.

PSM account assignments are derived from the WBS element master data during timesheet entry (for pre-filled tasks from resource demands) and during the creation of the purchase requisition (for service and material demands).