Controlling Sales Projects

Objective

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".

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.

Log in to track your progress & complete quizzes