Project Systems Overview

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 Brainwash of people
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 Course Topics
This course will cover the following topics:
 Project Systems (PS) Overview
 Project Releases
 Month-End Settlements (Orders & Projects)
 Project Close
 Course Objectives
At the end of this training you will be able to:
 Understand the roles and responsibilities of the Property Accountant
 Identify the SAP Fiori Tiles associated with the Property Accountant role
 Understand the changes between SAP ECC and S4 processes
 Release capital projects
 Perform orders and projects settlements
 Close capital projects
 Project Systems Overview
The subprocess “Project Systems” provides project management functionality within SAP. It allows you to
create projects, enter plan costs, enter project budgets, track costs, assign resources, manage project
materials, track milestones and schedule activities within a detailed project structure. The PS module is
heavily integrated with other modules in SAP including Investment Management (IM) and Fixed Assets (FA)
modules.

 There are two types Projects

 Expense Projects
 Capital Projects

 Tracking Costs

 Procurement - PR’s/PO’s are initiated in Ariba and replicated in S4

 Maintenance Work Orders (Order Type: PROJ)
 CATS Entries
 FI Journals
 Project Systems Overview
Standard Project Structure – Capital Projects
 Project Systems Overview
Expense Projects
 Project Systems Overview
Assignment of Capital Project to IM Program

PS IM

PV-123456 LZ-ACE / 2019

Expense Capital
PV-123456-EX PV-123456 LZA

OP
Training Demo. Pre-AR Capital
PV-123456-EX.01 PV-123456-EX.02 PV-123456-AR PV-123456-CP

OP USA

OP USA PV
Note that only capital projects are assigned
to the IM program. Expense projects are not
assigned to the IM.
9
 What’s Changing In S4 Hana For PS
S/4 HANA changes to Lubrizol’s PS Process:
 Ability to do detailed level of cost planning
 ECC uses summary cost planning – Annual Planning at the WBS level
 S4 uses summary cost planning as well as detailed planning by month by GL at the WBS level
 Summary level planning uses plan version “0” and Detailed planning uses plan version “ZPS”
 No Networks
 New work order types in S4
 What’s Changing In S4 Hana For PS
S/4 HANA changes to Lubrizol’s PS Process:

 All settlement rules on work orders created automatically

 PROJ order types will be settled to WBS elements

 PREF order type settled to material (Store inventory)

 Rest would be settled to the prod cost centres (Technical object (FL or Equip)
 Project Conversion
Open Project Conversion from ECC / Cutover Preparation
 Project numbers are same as in ECC

 Existing WBS structure will be copied over to S4

 Plan cost, budget, budget supplements, budget release values, actual values, commitment
balances will be brought over to S4 from ECC

 Capital MWO are re-created in S4 – numbers are same as ECC

 ECC Cut-of date for project creation and project closing is June 19th, 2019

 The Open Project conversion process starts from June 20th, 2019
SAP to SAP Fiori Crosswalk
 SAP to SAP Fiori Crosswalk
SAP Transaction to SAP Fiori Tile Mapping
SAP Transaction Code(s) SAP Fiori Tile

IM52 Budget Distribution

CJ30 Edit Original Budget

CJ32 Edit Budget Release

CJ02 Change Project

CJ20N Project Builder

KO8G Run Actual Settlement Internal Orders- (Optimized)

 SAP to SAP Fiori Crosswalk
SAP Transaction to SAP Fiori Tile Mapping
SAP Transaction Code(s) SAP Fiori Tile

CJ8G Run Actual Settlement Projects – Collective (Optimized)

SMXX Display Own Background Jobs

CJI3 Display Project Actual cost line Items

CJ88 Run Actual Settlement Projects

CJ38 Edit Budget Return

CJ37 Edit Budget Supplements

Project Release
 Project Release
Project Set-up Activities
 This section covers the activities associated with the steps for defining a project in SAP. The activities
include:

Project Manager
 All projects will be created using the Project Builder App
 Still search for next available capital project number
 In S4 only have two project profiles
 LZ_CAP (profile to be used for all capital projects)
 LZ_EXP (profile to be used for all expense projects)

 Standard Project Templates have been created for each company code
 LZCORP01 LZA CORP WBS Cap/Exp/Pre AR
 ITCORP01 LZA CORP IT CAPITAL & EXPENSE
 Project Release
Project Manager
 Project Builder - Create Capital Project
 Change Cost Plan - Create Cost Plan for Project

Property Accountant
 Budget Distribution - Distribute Project Budget from IM program

 Edit Original Budget - Copy Cost Plan to Budget

 Edit Budget Release – Release Project Budget

 Change Project - Enter Project Approval Date

 Change Project - Release Project

 Project Release
Project Manager – Activity Details
 Create/Maintain Capital Project

 Fiori App – Project Builder

 Create Maintain Capital Project Cost Plan

 Fiori App – Change Cost Plan

 Summary Cost Plan
 Detail Cost plan

‒ Project Cost Plan is created when a capital project scope and resulting cost estimate has been developed sufficiently to plan costs
for the project WBS elements.

• A cost plan can be created and maintained (updated) as the scope and estimates are refined.

‒ Note that certain WBS elements do not permit the entry of planned costs. This is driven by setting the planning indicator on the
WBS elements. If this indicator is not set, then you cannot enter plan costs on the WBS element in this transaction.

‒ For Non-US sites; since actual costs for projects at non-US sites will be processed in local currencies, the project plan costs and
budget should also be in local currency .
 Project Release
Project Manager – Activity Details
 Assign Project to IM Program Position

 Fiori App – Project Builder

- Note that ONLY capital projects are assigned to the IM program. Preliminary and expense projects are NOT to be assigned to the
IM program.

- The level one capital WBS element is the one that should be assigned to the IM program.
 Project Release
Property Accountant – Activity Details
 Distribute Budget to Project from IM
 Fiori App – Budget Distribution

 Once a project is created and assigned to an IM program position, The IM program funds (Budget) will be
distributed to the project.
 IM programs would still be budgeted in USD, however, distribution would need to be in object (local)
currencies.
 When a location is going to distribute budget to a project from IM using “Budget Distribution” app, it should
select the respective location’s Position-ID and not the entire IM (by selecting Position-ID LZ-ACE)
 For all budget distribution inquiries, display budget distribution should be used instead of budget distribution
app.

‒ Note that the budget distribution to the project may occur in two steps for Pre-AR projects. The first distribution may be for only
the Pre-AR amount, followed by a supplement for the remaining funds once the project has been fully approved.
 Project Release
Property Accountant – Activity Details
 Create/Update Project Budget
 Fiori App – Edit Original Budget

 The easiest way to accomplish this activity is to copy the cost plan entered by the manager into the budget.
 Default summary level planning uses plan version “0”
 Switch the plan version to “ZPS” (Menu > Settings > Planned Total Version) if you don’t see planned data under
“Planned Total Version” column
 The plan data copy needs to be performed for the annual values and the overall values.
 For Non-US locations, the currency view needs to be changed to object currently.
 Project Release
Property Accountant – Activity Details
 Release Project Budget
 Fiori App – Edit Budget Release

 Release the budget only at the “OVERALL” and at the highest level WBS elements (Capital, Expense and
Intangible).

 Note that this is the step that activates availability control.

 The following thresholds have been configured for availability control.

o At 92% of released budget the user gets a warning during the transaction.

o At 95% of released budget the user gets a warning and an email is sent to the project manager.

o At > 100% of released budget the user get an error message during the transaction.
 Project Release
Property Accountant – Activity Details
 Enter Project Approval Date
 Fiori App – Change Project/Project Builder

 Enter the approval date on level 1 capital, expense and intangible WBS element
 Note that the date fields are maintained on the user fields tab.

 Release Project
 Fiori App – Change Project/Project Builder

 Release the project opens up the project for financial posting

 Project release may also occur in two steps for Pre-AR projects. Initially, only the Pre-AR WBS elements could
be released followed by the release of the remaining WBS elements once the project has been fully funded.
 Note that during this step the system automatically creates a corresponding AUC asset for each WBS elements
that has the account assignment indicator set and investment profile assigned. he user fields tab.
 Investment profile field is blank for Expense WBS elements
 Project Release
Demo
1 Budget Distribution
2 Display Budget Distribution
3 Edit Original Budget
4 Edit Budget Release
5 Change Project/Project Builder - Enter Project Approved Date – Top Level Cap/Exp WBS
6 Change Project/Project Builder – Release Project

Exercise
7 Budget Distribution
8 Display Budget Distribution
9 Edit Original Budget
10 Edit Budget Release
11 Change Project/Project Builder - Enter Project Approved Date – Top Level Cap/Exp WBS
12 Change Project/Project Builder – Release Project
Month-End Settlements
Orders And Projects
 Month-End Settlements
Maintenance Work Order - Expense
 Month-End Settlements
Maintenance Work Order - Capital
Month-End Settlements
Month-End Settlements
 Month-End Settlements
Month-End Settlement Overview
 Wickliffe Corporate Accounting notifies Fixed Asset Coordinators that CATS (Labor Postings) are complete for the
month.
 DO NOT START YOUR MONTHLY SETTLEMENT PROCESS UNTIL YOU RECEIVE THIS COMMUNICATION FROM
WICKLIFFE CORPORATE ACCOUNTING.

 Monthly Settlements must be performed in the following order:

‒ Run Actual Settlement Internal Orders(Optimized) (MWO’s both Cap & Exp)

‒ Run Actual Settlement Projects - Collective(Optimized) – Expense

‒ Run Actual Settlement Projects - Collective(Optimized) – Capital

 Order settlement process moves the actual costs from MWO’s to WBS elements or Prod. cost centers.

 CJ8G is the process that moves the actual costs from the project WBS elements to either the AUC for capitalization or
a cost center for expense.

 This process occurs at the end of each month.

 Month-End Settlements
Month-End Settlement Variants
 Month-End Settlements
Monthly Capitalized Interest Posting
 For projects with authorized amount greater than or equal to $2M; interest expense is capitalized monthly and charged to a
specific WBS element (XX-NNNNNN-98.00) in that project.
 Calculation is:
‒ Average Monthly Project Balance ((Prior month Beginning balance + Prior month Ending Balance) / 2) times monthly
interest rate (Annual interest rate / 12). Interest rate is communicated by the Treasury Department on a quarterly basis.
‒ Journal Entries: Dr 752170/WBS and Cr 640035/XX9800 (PO9800)

 When the project is closed, the cost accumulated against the WBS Element (XX-NNNNNN-98.00) is settled to a fixed asset. At
this point, all the Books (01, 02, 31, 32, 33) have the total accumulated cost assigned to them.

 The tax book 10, 11, 12, 13, and 14 values must be reduced to $0.01 because the interest is not capitalized for tax.

 The tax books’ cost is reduced to $0.01 using credit memo transaction. S4 requires that Book 01 cost be adjusted; therefore
it is reduced by $0.01. The other areas (tax) are reduced by an amount so that $0.01 remains as their cost.
 Month-End Settlements
Demo

1 Run Actual Settlement Internal Orders(Optimized) – KO8GH (Maintenance & Projects)

2 Run Actual Settlement Projects - Collective(Optimized) – CJ8GH (Expense)
3 Run Actual Settlement Projects - Collective(Optimized) – CJ8GH (Capital)
4 Display Own Background Jobs SMXX
5 Display Project Actual cost line Items

Exercise

6 Run Actual Settlement Internal Orders(Optimized) – KO8GH (Maintenance & Projects)

7 Run Actual Settlement Projects - Collective(Optimized) – CJ8GH (Expense)
8 Run Actual Settlement Projects - Collective(Optimized) – CJ8GH (Capital)
9 Display Own Background Jobs SMXX
10 Display Project Actual cost line Items
Project Close
 Project Close
Project Closes
 Project Close
This section covers that activities associated with the closing of a project in S4.
Project Manager
 Review and Remove outstanding commitments
 Review and Remove Remaining Order Plan

Property Accountant
 Responsible for final settlement to fixed asset
 Create necessary fixed asset master records
 Create final settlement rule on each capital WBS element
 Change project status to TECO (Technically complete)
 Perform final settlements
 Return unused funds to IM, if applicable
 Change project status to close
 Review the asset values
 Project Close
Project Manager – Activity Details
 Review and Remove outstanding commitments/Remaining Order Plan

 Fiori App – Project Costs Plan/Actual/commitments/remaining planned/assigned

‒ Note that before a project can be closed, all outstanding commitments and remaining order plan costs must be removed.

‒ Outstanding commitments can be removed by either deleting the purchase requisition line item or by setting the “delivery
complete” indicator on a purchase order.

‒ The remaining order plan costs can be removed by setting the technically complete (TECO) status on the maintenance work
orders.
 Project Close
Property Accountant – Activity Details
 Create asset master record
 Fiori App – Create Asset

‒ Asset shell contains information related to an asset including master data, organizational allocations, and
depreciation terms.

‒ AuC costs are settled to the Asset Shell when the capital project is ready to capitalize and the project status is
“Technically Closed”.

‒ The Asset Shell becomes the permanent asset record used for inventory, transfers, depreciation, and retirements.

‒ Asset number is an internally generated number and consists of both main number and asset subnumber. Primary
Asset number will always have ‘0’ subnumber.
• Every Asset - subnumber combination is an independent Asset and is typically used to represent a large fixed asset with
multiple components.
 Project Close
Property Accountant – Activity Details

 Create final settlement rule

 Fiori App – Change project/Project Builder

‒ In this step the property accountant enters the settlement rules on the WBS elements to settle the costs to the
final fixed assets using percentages.

‒ The cost settlement from WBS to Final Fixed Assets can be 1:1, 1:N, or N:1

‒ A pre-requisite to this step is the creation of the final fixed asset master records.

 Set Project Status to TECO

 Fiori App – Change project/Project Builder
 Project Close
Property Accountant – Activity Details

 Run final settlements

 Fiori App – Run Actual Settlement Projects

‒ Run settlements in test mode to review and resolve potential errors prior to executing in the update mode.

‒ The Asset Value Date must be the last day of the current month or later.

‒ This date will be defaulted as the capitalization date on the asset master record.

‒ The settlement process credits the AuC and debits the final fixed asset based upon the percentages entered in the
settlement rules for the WBS elements.
 Project Close
Property Accountant – Activity Details

 Return unused funds to IM

 Fiori App – Edit Budget Return
 Fiori App – Edit Budget Release
 Fiori App – Budget Distribution

‒ This allows any un-used funds to be redistributed to other projects.

‒ Note that you can only return funds to the IM during the same fiscal year that they were distributed.

 Change Project Status to Close

 Fiori App – Change Project/Project Builder

- This status change locks the project down and prevents any financial postings.
 Project Systems Reports
Project Systems Reports

 Display Project Actual Cost Line items

 Project Budget/Actual/Commitments/Remaining Planned

 Project GR/IR Imbalance report

 Project Structure Overview

 FI/CO Reconciliation Report

 BI Reports for Capital Projects

 Project System Interfaces
1. Non Technical Projects
 Non-Technical projects (Marketing projects) are initiated in PAP system to support the
marketing services initiatives (Advertising, Consulting, and life cycle analysis). These
projects get created in PAP system and transferred to SAP via interface to create projects
in SAP.
 The project number (N#) is generated in PAP and transferred to SAP via interface to
create in SAP.
 An interface file gets generated from PAP system and sent to SAP accounting team via e-
mail. The GL accounting team process the file by saving it in directory :
\\sapfiles\S4Q\RTR_NONTECH\IN and executes the load program
 There are 3 different input files with action code A, B & C for Creation of Projects,
Change of Settlement rules and Closing Of Project respectively.
2. Technical Projects

 Technical projects (Technical expenses) are initiated in PAP system Technical expenses are the
costs of taking new technology from conception to manufacturing including specific customer
testing programs. These projects are get created in PAP system and and transferred to SAP via
interface to create projects in SAP.
 The project number (T#) is generated in PAP and transferred to SAP via interface to create in
SAP.
 An interface file gets generated from PAP system and sent to SAP accounting team via e-mail.
The GL accounting team process the file by saving it in directory : \\sapfiles\S4Q\RTR_TECH\IN
and executes the load program
 There are 2 different input files with action code A, B & C for Creation of Projects, Change of
Settlement rules respectively.