Controlling Sales Projects

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Explain how SAP S/4HANA helps to control Sales Projects

How to control a Sales Project

Introduction: Controlling Sales Projects

As a core ERP functionality, the integration of projects with the sales orders enables the direct flow of revenues to the project. The margin can be easily analyzed along with the incurred costs.

This scenario covers the fixed-price project billing with the possibility of a down-payment and billing plan. Using the Projects with Revenue profile, the user can create a hierarchy as an accounting structure, set up billing elements, and plan costs and revenues. As soon as the project is released, actual costs and revenues are captured, allowing the project profitability to be analyzed. At the same time, the revenue is recognized with each cost posting. At the period end, no settlement run is necessary as the postings already have the CO-PA characteristics maintained in the settlement rule or derived from the sales order.

Task 1: Create a Revenue Project

Shubham, our Project Financial Controller, wants to create a revenue project. Therefore he uses the respective project profile inside WBS element.

Task 2: Update a project

Shubham created the header WBS element in further task. Now he defines subordinated WBS elements for planning and execution.

Some data were defined outside SAP project control. Therefore he downloads a planning template, fills in the data and finally uploads the planning template. At the end he releases the project.

Task 3: Create Sales Order and perform a delivery

Kate, our internal sales representative, creates a sales order: The order item that has a billing plan, where the first item is a down-payment. The sales order item has the project created before as account assignment.

Lionel the Billing Clerk, creates the billing document with a billing type for downpayment request.

Then he post incoming payments.

Finally Lionel creates an outbound delivery.

Now you should have an impression of "How to maintain a Sales Project".

Control a Sales Project (4I9)

As a core ERP functionality, the integration of projects with the sales orders enables the direct flow of revenues to the project. The margin can be easily analyzed along with the incurred costs. This scenario covers the fixed-price project billing with the possibility of a down-payment and billing plan. Using the Projects with Revenue profile, the user can create a hierarchy as an accounting structure, set up billing elements, and plan costs and revenues. As soon as the project is released, actual costs and revenues are captured, allowing the project profitability to be analyzed. At the same time, the revenue is recognized with each cost posting. At the period end, no settlement run is necessary as the postings already have the CO-PA characteristics maintained in the settlement rule or derived from the sales order.

Task 1: Prerequisite: Assign Business Roles to your user

Steps

  1. Log on to the SAP S/4HANA Public Cloud training system with your user credentials and assign the relevant business roles to your user.

    Assign:

    Role IDDescription
    BR_PROJ_FIN_CONTROLLERProject Financial Controller
    BR_PROJECTMANAGERProject Manager
    BR_INTERNAL_SALES_REPInternal Sales Representative
    BR_BILLING_CLERK Billing Clerk
    BR_AR_ACCOUNTANTAccounts Receivable Accountant
    BR_SHIPPING_SPECIALISTShipping Specialist
    BR_SALES_ACCOUNTANTCost Accountant - Sales
    1. Log on to the SAP S/4HANA Public Cloud training system with your user credentials.

    2. Navigate to the Maintain Business Users application.

    3. Scroll through the list of users to locate your business user.

    4. Select your business user.

    5. Choose Add and search for the required business roles.

    6. Choose Apply, then OK to close the dialog box.

      Result

      You now see the business roles assigned.
    7. Choose Save.

    8. Refresh your screen.

Task 2: Maintain settings for Timesheets

To enter WBS related timesheet information, system settings have to be extended:

Steps

  1. Open the app Manage Your solution with the entry Configure your solution.

    1. Open the app: Manage your Solution.

    2. Select the entry Configure Your solution.

  2. Select the following entries:

    Selection data

      
    Application Area:Human Resources
    Sub Application AreaTime Sheet
    1. Enter selection data.

    2. Open detail screen.

  3. Configure the first entry "Maintain Data Entry Profiles (S/4HANA)".

    Double click the entry S4H_INT.

    Set the check boxes for "Field Selection":

    • Receiver Cost Center
    • Activity Type
    • Receiver Order
    • Receiver WBS Element

    1. Double click entry S4H_INT.

    2. Set the necessary check boxes.

    3. Save the data and open home screen.

Task 3: Create Project

In this exercise you create a new project with the project builder.

Note
To complete this exercise, you must have the Project Financial Controller (BR_PROJ_FIN_CONTROLLER) business role assigned to your user.

Steps

  1. Open the Project Control-Enterprise Projects app.

    1. Navigate through the displayed tiles or use the enterprise search in the upper area to locate the Project Control-Enterprise Projects app.

    2. To open the app, choose it.

  2. Create a new overhead project. Use the following data:

    Project Details

    FieldValue
    Project Name:Project with revenue- ###
    Project ID:PR_###
    Project Profile:Project with Revenue
    Multiple Sales Order Items Scenario: selected
    Planned Start:Today
    Planned Finish:Today + 3 months
    Responsible Cost Center:10101501
    Profit Center:YB600 (Shared Services)
    Project Manager:998.….….…. ( your user)
    Note

    By selecting the check box Multiple Sales Order Items Scenario, you can assign more than one billing relevant sales order item to the same billing work package.

    Click on Create.

    1. Choose the button Create.

    2. In the Identification and view selection section, enter the Project ID and the Project Description in the fields corresponding to Project def.

    3. On the Control tab, use the dropdown help to enter Project with Revenue in the Project Profile field.

    4. Choose the Basic Data tab.

    5. In the Dates section, enter the Start Date and Finish Date.

    6. In the Organization section, enter the Responsible Cost Center and Profit Center.

    7. In the Responsibilities section, to enter the Project Manager, open the value help.

    8. Choose Create. When the project definition is created, the Project Summary Task WBS Element will be created.

  3. Add the following values inside "General Information" area:

    General Information Section

    FieldValue
    Plant:1010
    Functional Area:YB25 (Consulting & Services) .

    Open the "Control" tab page and enter:

    Control

    FieldValue
    Costing Sheet:1010PI
    Budget Availability Control Profile:PS001
    Budget Availability Control Profile is activeselected

    Save it.

    1. Switch to Edit mode.

    2. Choose the General Information area.

    3. In the Organization section, enter the Plant and the Functional Area.

    4. Navigate to the Control tab and enter the Costing Sheet and Budget Control Profile PS001.

    5. Select Budget Availability Control is "Active".

    6. Choose Save.

  4. Maintain the following settlement rule:

    Distribution Rules

    Account Assignment CategorySettlement ReceiverPercentSettlement TypeDistribution Rule Number
    PSGAssigned to prof. segment100PER1
    1. Choose the button Settlement Rule inside header area.

    2. Maintain the distribution rule as provided in the table and then choose Back.

      Alternative navigation: Enter PSG and execute. A pop up appears where you just have to continue.

    3. Choose Save and Exit.

Task 4: Create WBS Elements Under Project

Create new WBS elements under your new created project.

Note
To complete this exercise, you must have the Project Financial Controller (BR_PROJ_FIN_CONTROLLER) business role assigned to your user.

Steps

  1. Once the project is created, from the header section, choose Related Apps and the entry Project Planning.

    Switch to "Edit" mode, highlight your created project and select the entry "Create".

    Enter inside new line:

    WBS Element 1

    FieldValue
    Name:Project Planning - ###
    ID (WBS Element):PR_###1
    Planned Start:Today
    Planned Finish:Today + 3 months
    Resp. Cost Cntr:10101501 (R&D) (This data is pre-populated from the main WBS level).
    Profit Center:YB600
    Note
    Some fields are filled in automatically.

    WBS Element 2

    FieldValue
    Description:Project Execution - ###
    WBS Element:PR_###2
    Basic Start Date:Today
    Basic Finish Date:Today + 3 months
    Resp. Cost Cntr:10101501 (R&D) (This data is pre-populated from the main WBS level).
    Profit Center:YB600

    If you would like, rearrange your WBS elements.Execution should be underPlanning.

    Finally save it.

    1. Select the button "Related AppsProject Planning" which can be found inside header area.

    2. In the Project Structure view (top left column), select the WBS Element OVH_###.

    3. Choose entry Create.

    4. Enter as a name Project Planning - ###.

    5. Enter Responsible Cost Center and Profit Center. It's the same as for the initial element.

    6. Repeat sub-steps c to f to create the second WBS element Project Execution - ###.

    7. Finally save it.

Task 5: Time recording

In this activity, employee enters the time recording for WBS Element.

Steps

  1.  Open the app: Manage My Timesheet. 

    Be default standard week and standard tasks are displayed.

    Therefore choose the button "Manage Tasks" and then the entry "Create Task".

    Enter the following:

    Accounting Objects

    FieldValue
    WBS Element:PR_### (Project Execution)
    Receiver Cost Center: 
    Internal Order: 
    Activity Type:8

    Save the data and jump one step back.

    1. Select the button "Manage Tasks". It's the last one inside header area.

    2. Select "Create Task" and enter data of exercise table "Accounting Objects".

    3. Sava data and jump one screen back.

  2. Select the Project Execution task and select one Day/Week you would like to post a working day.

    1. Select project execution task on the right hand side.

    2. Select a day you would like to post your work.

    3. Save and Submit your data.

Task 6: Set milestones

In this activity, the Project Manager describes the project details, such as Milestones, for the first time.

Note
To complete this exercise, you must have the Project Manager (BR_PROJECTMANAGER) business role assigned to your user.

Steps

  1. Open My Projects - Project Manager app. Choose Planned Projects box and select your project PR-### and open detail screen.

  2. Inside Project Briefs choose Edit.

  3. From the "Milestones" tab, choose Create to add a relevant milestone.

    Enter the following:

    Milestone

    FieldValue
    Milestone:MS1-###
    Planned Finish:today + 2 months

    Choose Save.

    1. Perform exercise.

Task 7: Release Projects and Project Parts

In this activity, you release the project to assign and post the actual cost for time confirmations, expenses, and so on. In this activity, you post planned budget to WBS elements.

Note
To complete this exercise, you must have the Project Financial Controller (BR_PROJ_FIN_CONTROLLER) business role assigned to your user.

Steps

  1. Click on the button "Related Apps" and select the entry Project Control- Enterprise Projects.

    1. Perform the exercise.

  2. Your project should be directly open. If not select your project and open it.

    Release your project.

    1. Execute the app and if necessary search your project PR-###.

    2. In the header, choose Processing statusRelease.

  3. Maintain the actual start date for every WBS element. Use the Project Planning app.

    1. Choose Related AppsProject Planning.

    2. Switch to the Edit mode.

    3. Change the layout of the structure view. Select the settings button on the right hand side.

    4. Add the "Actual Start" information.

    5. Add for every object the current date as a start date.

    6. Choose Save.

    7. Open Home page.

Task 8: Create a Sales Order

Note
To complete this exercise, you must have the Internal Sales Representative (BR_INTERNAL_SALES_REP) business role assigned to your user.

Steps

  1. Execute the app Create Sales Orders - VA01.

    Enter the following data:

    Sales Order: initial screen

    FieldValue
    Order Type:OR
    Sales Organization:1010
    Distribution Channel:10
    Division:00

    Continue.

    Enter order details:

    Order Details

    FieldValue
    Sold to Party:10100004
    Ship to Party:10100004
    Cust Reference:your choice
    Req. Deliv. Date:Today

    Now enter the material and quantity.

    Items

    FieldValue
    Item:0010
    Material:TG11
    Quantity:20
    Item Category (ItCa):CBXN

    Continue.

    1. Execute the app Create Sales Orders (VA01) and enter the data for the initial screen.

    2. Inside Sales Order header enter the data of Order Details table.

    3. Enter the material TG11 and the right Item Category CBXN.

    4. Confirm the data by pressing the enter button on your keyboard.

  2. Perform an item account assignment with your header WBS element PR_###.

    1.  Select the item. Choose MenuGotoItemAccount Assignment.

      Enter your header WBS element: PR_###.

  3. Save your Sales order.

    Make a note of your sales order number.

Task 9: Create Delivery

This process step shows you how to create delivery.

Note
To complete this exercise, you must have the Shipping Specialist (BR_SHIPPING_SPECIALIST) business role assigned to your user.

Steps

  1. Please execute the following app: Create Outbound Deliveries - From Sales Orders.

    If your sales order is not directly displayed enter the following:

    Search Criteria

    FieldValue
    Shipping Point:1010
    Planned Creation Date:Due Up Until Next Week
    Sales Document:Your SO number

    Click on GO.

    1. Execute the app and enter the data of table "Search Criteria".

    2. Click on GO.

  2. Flag your Sales Order and click on Create Deliveries.

    Note
    To write down the delivery number, open Display Log.
    1. Set the check box next to your SO number and select the box Create Deliveries

    2. Select the box: Display Log.

    3. Make a note for your delivery number.

Task 10: Execute picking

The picking process involves taking goods from a storage location and staging the right quantity in a picking area where the goods are prepared for shipping. This process step shows you how to pick deliveries.

Note
To complete this exercise, you must have the Shipping Specialist (BR_SHIPPING_SPECIALIST) business role assigned to your user.

Steps

  1. Execute the app Manage Outbound Deliveries - VL06O.

    Choose For Picking.

  2. On the next screen enter:

    FieldValue
    Shipping Point:1010
    Picking Data:Only without WM
    Time Data:Today to (Today plus one month)

    Execute.

    1. Select the right app Manage Outbound Deliveries- VL06O.

    2. Inside the initial screen select the box which is named For Picking.

    3. Enter 1010 as a shipping point and set the radio button for Picking Data: Only Picking without WM.

    4. Increase the duration of time.

    5. Execute.

  3. Inside Screen Day's workload for Picking select your delivery and chooseChange Outbound Deliveries.

    Select your material and check, whether a Batch Split exists.

    Enter a Picked Quantity 20.

    Finally save it.

    1. In the upcoming screen set the check box for your delivery number and choose button Change Outbound Deliveries.

    2. Select your material. A batch split shouldn't exist. Enter a Picked Quantity of 20.

    3. Save it.

Task 11: Post goods issue

This process step shows you how to post goods issues for delivery.

Note
To complete this exercise, you must have the Shipping Specialist (BR_SHIPPING_SPECIALIST) business role assigned to your user.

Steps

  1. Execute the app Manage Outbound Deliveries - VL06O again.

    Choose the button For Goods Issue.

    1. Select the right app Manage Outbound Deliveries - VL06O.

    2. Inside the initial screen select the box which is named For Goods issue.

  2. Enter the following:Shipping Point:1010.

    Execute.

    Flag your delivery number and select the box Post Goods Issue in footer line.

    Accept the suggested Act. Gods Mvmnt Date (Actual Goods Movement Date) and press Continue.

    Select then the button Post Goods Issue.

    1. Enter shipping point number 1010.

    2. Execute.

    3. Set the check box for your delivery number. Select then the button Post Goods Issue inside footer area.

    4. The actual goods movement date is suggested. Accept it and press Continue.

Task 12: Create Invoice

In this activity, you handle the billing.

Note
To complete this exercise, you must have the Billing Clerk (BR_BILLING_CLERK) business role assigned to your user.

Steps

  1. Execute the app Create Billing Documents.

    Please define the following Billing Settings:

    Billing Settings

    FieldValue
    Set billing date and type before billingON
    Create separate billing document...ON
    Automatically post billing documents:ON
    Display billing documents after creation:ON
    Choose delivery items to be billed...OFF
    1. Before you create a billing document for your SD Document, you can reduce the list items.

      Doing so select the entry "Billing Settings" on the right hand side.

      Enter the values which can be found inside exercise table "Billing Settings".

  2. Select your SD Document (delivery number) and the entry Create Billing Documents.

    Maintain:

    Create Billing Documents

    FieldValue
    Billing Type:Invoice (F2)
    Billing Date:Today

    Save your billing document.

    1. Set the check box on the left hand side for your SD Document and click on Create Billing Documents.

      Note
      Don't try to find your sales order ID. Please select our delivery number 8#######.
    2. Inside the pop-up enter the Billing Type Invoice (F2).

      Be sure, that you select the right invoice type (F2).

      Enter today's date as billing date and press OK.

    3. Your invoice becomes displayed. Finally save it.

Task 13: Complete Milestone

In this activity, the Project Manager changes the status of the milestone to be approved based on the feedback received from the Project Steering Committee during the review meeting and sets the actual dates for the approved milestones.

.

Note
To complete this exercise, you must have the Project Manager (BR_PROJECTMANAGER) business role assigned to your user.

Steps

  1. Complete your milestone with the app "My Projects - Project Manager".

    1. Execute the app.

    2. Select the card "Upcoming Milestones" with your project PR_###. Open your project.

    3. Choose Edit button.

    4. Set "Milestone Approval Status" to Approved.

    5. Update the Actual Finish Dateto today's date for the ap­proved milestone.

    6. Save your data and open Home screen.

Task 14: Monitor Projects

In this activity, you can analyze the costs (planned/actual) recorded on the project using different tiles available on the Fiori launchpad. You can also check project progress and the overall status of your project.

Note
To complete this exercise, you must have the Project Financial Controller (BR_PROJ_FIN_CONTROLLER) business role assigned to your user.

Steps

  1. Open Project Financial Controller Overview app.

    Use Plan category: PLN.

    Check the details:

    • Cost to Date- Cost Component
    • Actual Costs and Commitments
    • Overall Status
    1. Execute the app.

    2. If necessary and not predefined, set the plan category to PLN.

    3. Check the information.

  2. Open the Project Cost Report - Plan/Actual app.

    Use:

    • Project: PR_###
    • Planning Category 1: Plan
    • Planning Category 2: CPM Baseline

    1. Open the app and enter project information PR_###.

    2. Select a project object and choose "View Details".

Task 15: Close Project

Note
To complete this exercise, you must have the Project Financial Controller (BR_PROJ_FIN_CONTROLLER) business role assigned to your user.

Steps

  1. Start the app Project Control- Enterprise Projects and open your project Pr_###.

    1. Open the app Project Control.

    2. In the search criteria, enter PR_### in the Project field.

    3. Choose GO.

    4. Choose your project from the search results to open its details.

  2. Close your project PR_###.

    1. In the header, choose Processing statusComplete.

    2. Choose Processing statusClose.

Sales Project Control

As a core ERP functionality, the integration of projects with the sales orders enables the direct flow of revenues to the project. In conjunction with the costs incurred, the margin can be easily analyzed.

This scenario covers the fixed priced project billing with the possibility of a down-payment and billing plan.

Using the Projects with Revenue profile, the user can create a hierarchy as an accounting structure, set up billing elements, and plan costs and revenues. When the project is released, actual costs and revenues are captured, allowing the project profitability to be analyzed.

At the same time, the revenue is recognized with each cost posting. At the period end, no settlement run is necessary as the postings already have the CO-PA characteristics maintained in the settlement rule or derived from the sales order.

Watch the following video to understand how your company could benefit from Project Control for Sales.

Applicable Process Steps

To sum up the steps you saw in that video, here are the general process steps listed:

  • Project Financial Controller: Creates and releases a project

  • Project Manager: Describes Project, sets and completes milestones

  • Internal Sales Representative: Creates a sales order with a billing plan with down payment

  • Shipping Specialist: Create delivery, execute picking and post goods issue

  • Billing clerk: Creates Invoice

Benefits

The benefits of working with project control for sales are:

  • Support fixed priced billing, down payment, and free-of-charge processes

  • Get actual revenue postings driven by sales order processing

  • Get real-time availability of revenue recognition data and profitability

  • Save manual effort for revenue recognition postings

  • Support more complex hierarchical project accounting scenarios through enablement of multiple billing elements within a project

Note

This process flow is covered in scope Item 4I9 - Project Control for Sales.

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