SAP Enterprise Portfolio and Project Management: A Guide to Implement, Integrate, and Deploy EPPM Solutions

✍ Scribed by Joseph Alexander Soosaimuthu

• Publisher: Apress
• Year: 2022
• Tongue: English
• Leaves: 381
• Category: Library

✦ Synopsis

Learn the fundamentals of SAP Enterprise Project and Portfolio management Project Systems (PS), Portfolio and Project Management (PPM) and Commercial Project Management (CPM) and their integration with other SAP modules. This book covers various business scenarios from different industries including the public sector, engineering and construction, professional services, telecom, mining, chemical, and pharmaceutical.

Author Joseph Alexander Soosaimuthu will help you understand common business challenges and pain areas faced in portfolio, program and project management, and will provide suitable recommendations to overcome these challenges. This book not only suggests solutions within SAP, but also provides workarounds or integrations with third-party tools based on various Industry-specific business requirements.

SAP Portfolio and Project Management addresses commonly asked questions regarding SAP EPPM implementation and deployment, and conveys a framework to facilitate engagement and discussion with key stakeholders. This provides coverage of SAP on-premise solutions with ECC 6.08 and SAP PPM 6.1 deployed on the same client, as well as S/4 HANA On-Premise 2020 with integration to BPC and BI/W systems. Interface with other third-party schedule management, estimation, costing and forecasting applications are also covered in this book.

After completing SAP Portfolio and Project Management, you will be able to implement SAP Enterprise Portfolio and Project Management based on industry best practices. For your reference, you’ll also gain a list of development objects and a functionality list by Industry, and a Fiori apps list for Enterprise Portfolio and Project Management (EPPM).

What You Will Learn

• Understand the fundamentals of project, program and portfolio management within SAP EPPM
• Master the art of project forecasting and scheduling integrations with other SAP modules
• Gainknowledge of the different interface options for scheduling, estimation, costing and forecasting third party applications
• Learn EPPM industry best practices, and how to address industry-specific business challenges
• Leverage operational and strategic reporting within EPPM

Who This Book For

Functional consultants and business analysts who are involved in SAP EPPM (PS, PPM and CPM) deployment and clients who are interested and are in the process of having SAP EPPM deployed for their Enterprise.

✦ Table of Contents

Table of Contents
About the Author
Acknowledgments
Chapter 1: Enterprise Project, Program, and Portfolio Management Fundamentals
Enterprise and Organizational Structure
Project Work Breakdown Structure
Project Definition
What Is a Project?
When Is a Project Created?
Work Breakdown Structure
Project Network
Activities
Internally Processed Activities
Externally Processed Activities
Cost Activities
Milestones
Activity Elements
Subnetworks
Integration with Other SAP Modules
Integration with Plant Maintenance
Integration with Sales and Distribution
Milestone Billing
Quotation and Sales Pricing
Revenue Recognition and Result Analysis
Revenue Rate Card
Reporting Transaction for the Purpose of Integration
Integration with Material Management
Purchase Requisition
Collective Purchase Requisition
Project Commitment
Purchasing Info Record
Valuated and Non-Valuated Project Stock
Automatic Requirement Grouping
Project-Oriented Procurement (Proman: Procurement Manager)
Reporting
Integration with Production Planning
Material Reservation
Material Requirements Planning (MRP)
Bill of Material (WBSE)
Integration with Controlling
Costing Variant
Valuation Variant
Cost Component Structure
Controlling Documents
Cost Rates
Costing Sheet and Overhead Key
Result Analysis
Settlement
Periodic Settlement vs. Full Settlement
Month-End Assessment and Distribution Cycles
Reporting
Integration with Finance
Investment Profile and Capitalization
Full Settlement to AuC and Fixed Asset (FXA)
Accounting Documents
General Ledger vs. Cost Element
Portfolio and Program Structures
Creating Portfolios
Integration of Project Management with Portfolio and Program Management
Synchronizing Project, Program, and Portfolio Structures
Vertical Synchronization
Item-Leading vs. Initiative-Leading
Horizontal Synchronization
Item-Leading vs. Project-Leading
Prioritization Framework
Activities for this Chapter
Summary
Chapter 2: SAP Enterprise Portfolio and Project Management Using SAP PS, PPM, and CPM
Project Planning and Forecasting
Different Planning and Forecasting Methods
Hierarchy Planning
Standard SAP PS Capability and its Limitations
Guidelines Related to Planning, Actual, and Forecast
Planning and Cost Plan Budget
Actuals
Forecast
Network Costing
Enhancement Considerations for Network Costing
Alternate Solution
Easy Cost Planning with Planning Form
Constraints
Enhancement Considerations for Easy Cost Planning (ECP)
Project Budgeting
Overall vs. Annual Budget
Release vs. Current Budget
SAP Project Budgeting Fundamentals
Availability Control
Tolerance Control Limit
Distributable and Distributed Budget
Budget Updates
Budget Return
Budget Return In Project (CJ38)
Budget Return From Project (CJ35)
Budget Supplement
Budget Supplement In Project (CJ37)
Budget Supplement to Project (CJ36)
Budget Transfer
Prerequisites
Procedure
Year End Budget Carry Forward
Prerequisites
Commitments
Selection Variant and Carry Forward Re-Run
WBSE Status that Allow Carry Forward
Availability Control Check and Negative Carry Forward
Budget Carry Forward Currencies
Transaction CJCO: Budget Carry Forward
Useful Transactions in Budgeting
Project Variation Management
Project RAG Status Commentary
Project Risk, Issue, and Change Request Registers
Project Procurement and Project Execution
Prerequisites
Network Planning and Execution
Project Resource Planning
Project Billing
Progress or Milestone Based Billing
Resource Related Billing (RRB)
Periodic Billing
Project Delivery-Based Billing
Order-Based Billing in Assembly Processing
Bill of Service (BoS) Based Billing
Project Settlement and Capitalization
Project Settlement and Capitalization
Settlement Rule
Settlement Profile
Settlement Strategy
Settlement Types in the Settlement Rule
Settlement Processing Type
Automatic (1)
Periodic (2)
Partial Capitalization (3)
Full Settlement (8)
Settlement Processing
Settlement Scenarios
Customer Projects
Cost Projects
Investment/Capital Projects
Project Closure
Activities for this Chapter
Test Your Learning
Summary
Chapter 3: Interface with Scheduling, Estimation, Costing, and Forecasting Applications
Fundamentals of Scheduling
Project Calendar
Scheduling Type and Scenarios
Network Diagram
Recording Actual Work
Project Variations and Their Impact on Scheduling
Scheduling and Its Impact on Forecasting
Detailed Date and Schedule Planning
Integration with Procurement and Production
Scenario 1: Project Specific Material – External Procurement
Scenario 2: Common Materials – External Procurement
Scenario 3: Common Materials – In-House Production
Scenario4: Project Specific Material – In-House Production
Integration with Resource Management
SAP Interface with Schedule Management Applications
Why is the interface to third party schedule management application required?
Design Principles for the Interface
Fundamentals of Estimation and Costing
Internal Labor
External Labor/Service
Subcontracting (Externally Processed Activities)
Internal Material
External Material
SAP Interface with Estimation and Costing Applications
Why is the interface to the third party estimation and costing application required?
Design Principles for the Interface
SAP Interface with Forecasting Applications or Products
Why is the interface to the third party forecasting application required?
Design Principles for the Integration
Activities for this Chapter
Test Your Learning
Summary
Chapter 4: Industry Best Practices and Business Recommendations
Industry Best Practices
Mobility and App Based Project Management Solutions (Cross Industry)
Resource-Related Billing (Professional Service)
Revenue Recognition via Results Analysis and Integration with Revenue Accounting and Reporting (IFRS) (Cross Industry)
Project Management Controls
Earned Value Analysis (EVA) (Public Sector, Engineering, Construction and Operation and Infrastructure Projects of Utilities and Telecom)
What Is Earned Value Analysis?
Planned POC
Actual POC
Planned Costs
Planned Earned Value (BCWS)
Actual Earned Value (BCWP)
Actual Costs (ACWP)
Work or Schedule Variance (SV)
Value or Cost Variance (CV)
Value Index (CPI)
Estimated Costs-To-Complete (ETC)
Estimated Costs at Completion (EAC)
Milestone Trend Analysis (MTA) (Construction, Information Technology, and New Product Development)
Variance Analysis (VA) (Cross Industry)
Portfolio and Program Management Controls and Decision Making
Investment Prioritization Framework (Cross Industry, Government Organizations, and Private Enterprises that Are Capital Intensive)
Decision Flow Management (Cross Industry)
Project Accounting and Integration with Other Modules/Third-Party Applications (Cross Industry)
Phases and Decision Points: (Government or Public Sector; New Product Development; Infrastructure projects of Telecom and Utilities))
Business Challenge: Project Structure
Work Breakdown Structure vs. Cost Breakdown Structure
Recommendation on Work Breakdown Structure vs. Cost Breakdown Structure
Business Challenge: Level of Planning During the Lifecycle of the Project
Estimates (BoQ/BoS/BoM)
Detailed Plan (Schedule of Quantities, Services, and Materials Against a Delivery Plan)
Recommendation About the Level of Planning
Business Challenge: Remote Project Location, Offshore Work, or Work Location with No Computer Access
Recommendation about Remote Work and Offshore Work
Business Challenge: When to Use Mass Upload
Mass Upload: When to Use It and When Not to?
Recommendations Regarding Mass Upload
Commonly Asked Questions
When a Project Involves an Internal Customer and Deliverer, Should the Internal Customer and its Deliverers Be Housed in One Project?
Variation Management Using Claims vs. CPM Change Request vs. Version Management (Baselining)—Which Method Is Better?
Network Costing vs. Easy Cost Planning—Which Is Better?
How Do You Manage Narratives for a Project?
Standard RICEFW List by Industry
Standard Functionality List by Industry
Activities for this Chapter
Test Your Learning
Summary
Chapter 5: Reporting and Analytics: Operational and Strategic
Operational Reporting
Real-Time Operational Reporting
Period End/Monthly Operational Reporting
Strategic Reporting
Diagnostic and Descriptive Analytics
Long-Term Trend Analysis
Predictive Analytics
Activities for this Chapter
Test Your Learning
Summary
Index